Lawful Source of Income, Citizenship and Immigration Status

Lawful screening is still possible. The correct method is to evaluate the applicant's actual rent obligation and all lawful income fairly, use consistent document rules, and separate a legally required eligibility check from a protected-status preference.

What does New York protect?

One fact pattern can involve more than one category. A rule aimed at noncitizens can also supply evidence of national-origin discrimination. A veteran's benefit can implicate lawful source of income while military status creates a separate protection.

Official source map

New York Executive Law section 292(36) defines lawful source of income broadly. It expressly includes housing-assistance payments or credits whether the money is paid or attributed to the tenant or directly to the landlord.

Section 292(41) defines citizenship or immigration status. It also says the Human Rights Law does not prevent verification when another law requires it or prohibit an adverse action that a law requires.

Executive Law section 296(5) prohibits covered owners and real estate professionals from specified housing discrimination because of these characteristics. Executive Law section 300 directs liberal construction of Human Rights Law protections and narrow construction of exceptions.

The New York State Division of Human Rights publishes detailed source-of-income discrimination guidance. Its current guidance addresses advertisements, vouchers obtained during tenancy, income formulas, credit, one-time grants, deposits, program paperwork and limited exceptions.

The Division's current housing complaint form separately identifies citizenship or immigration status and national origin as possible bases for a housing report.

What counts as lawful source of income in New York?

The statutory list is inclusive, not exhaustive. It includes:

• Section 8 vouchers and other federal, state or local housing assistance
• public assistance
• Social Security income
• child support
• alimony or spousal maintenance
• foster-care subsidies
• other housing-assistance payments or credits
• other forms of lawful income

Division guidance also identifies examples such as Supplemental Security Income, veterans' benefits, certain housing subsidies, trusts and special-needs trusts. One-time help for rent, security deposits, move-in costs or broker fees can also be protected when it comes from a lawful public, charitable or other source.

The source need not arrive in the applicant's bank account first. A direct payment to the landlord remains within the statutory definition.

Worked example: direct voucher payment

A landlord says a subsidy is not “income” because the housing agency will pay its share directly to the landlord.

The payment path does not remove protection. Section 292(36) expressly includes housing assistance whether paid or attributed directly to a landlord.

What conduct can be source-of-income discrimination?

A direct refusal is the clearest example, but it is not the only one. Division guidance identifies barriers such as:

• offering fewer available homes
• delaying an application after a voucher is disclosed
• stopping communication or ghosting
• refusing to negotiate
• imposing different deposits, services or amenities
• rejecting an existing tenant who later obtains a subsidy
• refusing required program paperwork or inspection steps
• applying a screening formula that effectively excludes subsidized applicants

In December 2025, the Division announced a settlement involving allegations that a brokerage and agents treated voucher testers differently from testers with employment income. The official settlement announcement specifically warns that ignoring a person or saying a voucher is not accepted may violate the statewide law.

The lesson for a salesperson is practical: silence after the protected source is disclosed can be evidence. Fair treatment includes response time, property access and assistance, not only the final application decision.

Which rental ads and statements are prohibited?

Statements such as these signal source-of-income exclusion:

• “No Section 8”
• “No vouchers”
• “No programs”
• “Employment income only”
• “Owner does not accept subsidies”
• “Voucher holders need not apply”

The Division's guidance treats an advertisement, statement or inquiry response indicating that vouchers or subsidies are not accepted as a violation. The rule also reaches a statement rejecting child support, disability benefits or another lawful source.

A coded phrase can create the same problem. “Working tenants preferred” may communicate that benefit income is unwelcome, particularly when the provider uses it to screen out otherwise qualified applicants.

Worked example: owner wording

An owner tells the listing agent to answer every voucher inquiry with “the apartment has already been taken,” although it remains available.

The agent must not follow the instruction. The conduct can involve source-of-income discrimination, false availability and a licensee's independent fair housing duties.

May a landlord ask about income?

Yes. Division guidance says a housing provider may ask about income, including its source, and request income documentation. The provider must accept lawful sources equally and cannot use the information to frustrate the law.

The difference is between amount and source:

• A lawful inquiry asks whether the applicant can meet the actual tenant-paid obligation.
• An unlawful shortcut discounts a dollar because it comes from a voucher, Social Security, child support or another protected source.

The applicant still needs to qualify for the housing. For a voucher, the rent generally must be within the applicable program cap or payment standard. Source-of-income protection does not require a housing program to approve a unit outside its governing limits.

Calculate the tenant's real obligation

Do not apply an income multiple to the full contract rent when a subsidy pays much of that rent. Division guidance gives an example in which a formula tied to total rent can be unreasonable when a voucher agency pays 70 percent to 100 percent.

Analyze the portion the applicant must actually pay and the applicable program determination. A rule that requires every applicant to earn 40 times the full rent may look uniform while excluding nearly every voucher holder for a reason unrelated to the tenant-paid share.

Worked example: income multiple

The monthly rent is $2,000. A housing agency will pay $1,600, leaving a $400 tenant share. The owner demands income based on the full $2,000 from the applicant alone.

The formula ignores how the rent will actually be paid and can frustrate the source-of-income protection. The provider should evaluate the tenant's obligation and the program's qualification rather than pretending the subsidy does not exist.

Can a landlord use wealth or credit requirements?

Screening rules cannot be used as a subterfuge for source discrimination or applied in a way that defeats the statute's purpose.

Division guidance says unreasonable wealth requirements can exclude the very applicants who qualify for rental subsidies because they have limited income or assets. It also requires individual consideration of credit and warns that credit history may be an unreasonable measure when an agency pays all of the rent.

This does not mean every credit or financial inquiry is forbidden. It means the criterion must be relevant to the applicant's actual obligation, lawful, individually considered and not a disguised voucher ban.

Better screening questions

Instead of “Does this person have wage income?” ask:

1. What portion of rent is the applicant responsible for?
2. Which lawful income sources are available for that portion?
3. Has a housing agency already determined the relevant ability to pay?
4. Is the criterion connected to a genuine remaining risk?
5. Would the same process treat different lawful sources equally?

Document the reasoning. A bare “failed income” code is not useful if the formula itself is the problem.

Must a landlord complete voucher paperwork and inspections?

New York guidance says a housing provider cannot avoid the law by calling ordinary subsidy-program steps an administrative burden. That can include an inspection, required repairs, forms, program contracts and other participation requirements.

An existing tenant who later obtains a voucher remains protected. The provider should take the required steps to accept it rather than treating prior admission without a subsidy as a waiver of future protection.

This does not let an applicant rewrite program eligibility or payment limits. It requires the housing provider to participate without source-based refusal when the protected arrangement otherwise applies.

Are emergency grants and deposit assistance protected?

Yes, lawful one-time assistance can fall within the protection. Division guidance includes aid for rent, security deposits, move-in fees and broker fees from public entities, charities or other lawful sources.

A provider should evaluate the actual payment arrangement. Rejecting a security-deposit agreement merely because an agency supplies it can create a source-of-income issue.

Other New York rules separately regulate application fees, deposits and rental charges. Avoid using this article as a complete landlord-tenant fee guide.

Are any properties outside the source-of-income rule?

Division guidance identifies very limited owner-occupied two-family and resident-owner room situations. The exact result depends on the detailed language in section 296, including separate treatment of discriminatory statements and broker conduct.

Do not tell a client “small landlord, therefore exempt.” Count the accommodations, confirm actual owner residence, determine whether a room or separate unit is involved, identify any ad and analyze the salesperson's own duties. Use Federal Fair Housing Exemptions and New York Limits for the full comparison.

Lawful-source-of-income protection does not apply to land or commercial space in the same way it applies to housing under the cited New York subsections. Other protected categories and laws may still govern those transactions.

What does citizenship or immigration status mean?

New York defines the category as the citizenship of any person or the immigration status of a person who is not a United States citizen.

Covered housing conduct can include:

• rejecting a noncitizen
• offering worse terms because of immigration status
• limiting a listing to citizens
• refusing to show a home after learning a person's status
• demanding extra documents only from people who appear foreign-born
• threatening or harassing residents because of perceived status

The law protects actual status and can also intersect with perceived status, ancestry and national origin. A salesperson should not infer immigration status from an accent, surname, language, appearance or country of birth.

Worked example: citizen-only listing

A landlord asks for “U.S. citizens only” in an ordinary market-rate rental listing and gives no law requiring the restriction.

The phrase expresses a citizenship limitation. The salesperson should refuse to publish it and escalate the instruction to the supervising broker.

When is citizenship or immigration verification allowed?

Section 292(41) draws a precise line. The Human Rights Law does not prevent verification when another law requires it. It also does not prohibit an adverse action that the law requires based on that verification.

The exception is not “whenever the owner wants to know.” Identify the law or program rule that requires the verification or action.

A four-question verification test

1. What exact law or government-program rule requires the information?
2. Does it apply to this property, transaction and applicant?
3. Are only the required documents or facts being requested?
4. Is the same rule applied consistently without national-origin proxies?

If there is no required-by-law basis, a selective immigration inquiry can become evidence of discrimination. An ordinary landlord should not import the federal employment Form I-9 process into a housing application. Employment verification and housing screening are different activities.

Publicly assisted housing eligibility

Some housing programs have federal or state eligibility criteria. New York's lawful-income definition permits publicly assisted housing to state, inquire about and apply criteria required by law or necessary to obtain program benefits.

That is a program-eligibility rule, not a general right for all housing providers to prefer citizens. Ask what the program requires and stop there.

How does national origin overlap?

The federal Fair Housing Act prohibits national-origin discrimination, and New York defines national origin to include ancestry. Citizenship, immigration status and national origin are not identical, but the evidence can overlap.

Examples include:

• assuming a person is undocumented because of an accent
• asking only people with foreign-sounding surnames for extra identity records
• discouraging applicants born in a particular country
• using language ability as a proxy when it is unrelated to a legitimate transaction need

A decision can violate more than one protection. The exam answer should identify the category directly supported by the facts and then note any overlapping basis.

How should a brokerage build a fair screening process?

Use one written workflow for every applicant while adapting the financial calculation to the actual payment structure.

Before marketing

• remove “no vouchers,” “working only,” “citizens only” and similar language
• publish objective property and application criteria
• identify program payment limits before making availability claims
• train staff to route voucher and documentation questions

During inquiry and showing

• give the same inventory and response timing
• record actual availability
• do not stop responding after a protected source or status is disclosed
• do not ask about citizenship unless a verified legal rule requires it

During application

• count all lawful income fairly
• measure ability to pay against the tenant's actual share
• avoid wealth and credit screens that nullify a subsidy
• request only documents relevant to lawful criteria
• complete required voucher steps promptly

At decision

• state the objective reason
• confirm that the reason would survive source and status review
• preserve the application record
• allow correction of a factual document error under the ordinary process

Consistency does not mean using an irrelevant full-rent formula for every person. It means applying the same lawful purpose while recognizing how the applicant's payment arrangement works.

What should a New York salesperson say?

When a consumer mentions a voucher, a clear response is: “We consider all lawful sources of income. Let me confirm the application steps and the applicable program information.”

When an owner requests a citizenship restriction, say: “New York protects citizenship and immigration status. We cannot use that preference. If a specific program law requires eligibility verification, the brokerage will confirm the exact requirement.”

Do not improvise immigration advice, ask for a diagnosis connected to benefits or tell a person to hide a voucher. Route program details and difficult screening questions to the supervising broker or qualified decision-maker.

Review the broader New York State housing protections beyond federal law, then use the Human Rights and Fair Housing study guide and free practice sampler.

Ten exam-style scenarios

1. A listing says “No Section 8.” The statement directly expresses source-of-income exclusion.
2. A broker stops returning calls after a prospect discloses a voucher. Ghosting can be evidence of a housing barrier based on lawful source of income.
3. A subsidy pays most rent, but the owner applies a multiple to the full rent. The formula can unlawfully ignore the applicant's actual obligation.
4. A landlord accepts wages but refuses equal Social Security income. The distinction is based on the protected source, not ability to pay.
5. An existing tenant obtains a voucher. Protection is not limited to new applicants, and required program steps should be completed.
6. A charity supplies a one-time security-deposit agreement. Lawful one-time assistance can be protected.
7. A market-rate listing says “citizens only.” Without a law requiring the restriction, the statement raises citizenship discrimination.
8. A government housing program requests only documents that its governing law requires. Section 292 permits required eligibility verification.
9. An agent asks only accented applicants for immigration papers. The selective demand raises citizenship and national-origin concerns.
10. A landlord rejects a voucher because inspections involve paperwork. Division guidance says ordinary program administration cannot be used to nullify source protection.

Common misconceptions

“Section 8 participation is always optional in New York”

Incorrect as a New York fair housing answer. State source-of-income protection can require a covered provider to accept a qualifying voucher and complete program steps even if the federal program describes landlord participation differently.

“Every applicant must earn the same multiple of full rent”

Incorrect when the formula ignores a subsidy and creates an unreasonable barrier. Evaluate the actual tenant share and current Division guidance.

“A landlord cannot ask about any income”

Incorrect. A provider may request lawful income information and documents but must accept lawful sources equally and use them fairly.

“A voucher holder cannot be screened at all”

Incorrect. Lawful, relevant screening remains possible, but it cannot discount the voucher or defeat the protection through a proxy.

“Citizenship and national origin are the same class”

Incorrect. They are distinct categories, although the same conduct can implicate both.

“Housing providers may never verify immigration status”

Incorrect. New York allows verification and required action when another law requires it. The exception must be tied to an actual legal requirement.

“A broker can repeat the owner's no-voucher policy”

Incorrect. Brokers and salespersons have their own statutory duties and can be named in source-of-income matters.

Frequently asked questions

Is Section 8 protected throughout New York State?

Yes. The New York Human Rights Law includes Section 8 and other housing assistance within lawful source of income, subject to the statute's limited property provisions and program eligibility rules.

Can a landlord say “No vouchers” in a New York rental ad?

No. Current Division guidance identifies a statement that vouchers or subsidies are not accepted as a violation of the Human Rights Law.

What income sources are protected in New York housing?

The statute includes child support, alimony, foster-care subsidies, Social Security, public assistance, housing vouchers and other lawful income. The list is not exhaustive.

Can a landlord require income documentation?

Yes, but all lawful sources must be accepted equally. The document request and screening formula cannot be used to exclude voucher recipients or another protected source.

Should income qualification use the full rent or tenant share?

For subsidized housing, assess the applicant's actual tenant-paid obligation and the agency's qualification. Applying a multiple to the full rent can be unreasonable when the subsidy pays a substantial share.

Can a landlord reject a voucher because of inspections and paperwork?

Current Division guidance says ordinary subsidy administration cannot justify source-of-income discrimination. Covered providers must take required steps, including program documents and inspections.

Are emergency rental grants protected?

They can be. Division guidance includes lawful one-time assistance for rent, deposits, move-in costs and broker fees.

Can a New York landlord require U.S. citizenship?

Not as a general preference. Citizenship or immigration status is protected. Verification or an adverse action can occur when a specific law requires it.

May a landlord verify immigration status for a government housing program?

Yes, to the extent a governing law or program requires the verification. The provider should request only what the requirement calls for and apply it consistently.

Does federal fair housing law protect immigration status?

Citizenship or immigration status is not a stand-alone class in the federal Fair Housing Act. Federal national-origin protection can overlap, and New York expressly protects citizenship or immigration status.

Sources and verification notes

This article was checked against New York and federal sources available on August 27, 2026. It is educational exam preparation, not immigration advice, program eligibility advice or legal advice for a housing decision.

Primary sources reviewed:

• New York Executive Law section 292(36) and (41), definitions
• New York Executive Law section 296, housing discrimination prohibitions
• New York Executive Law section 300, construction of the Human Rights Law
• New York State Division of Human Rights, Guidance on Source of Income Discrimination in Housing
• New York State Division of Human Rights, 2025 source-of-income settlement announcement
• New York State Division of Human Rights, housing discrimination report form
• HUD, Housing Discrimination Under the Fair Housing Act

Verification note: the current statutory definitions control. Program rules can require eligibility verification, but that exception should not be expanded into a general citizenship preference or a refusal to count lawful income.