Rent

A ban on income discrimination was overturned. What protections remain for renters who use housing vouchers?

  • The ruling creates ‘risk and hardship’ for 120,000-plus Section 8 renter households in NYC
  • But voucher holders can still report discrimination to the NYC Commission on Human Rights
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By Jennifer White Karp  |
March 10, 2026 - 2:00PM
Apartment buildings in Harlem near 125th St

A panel of five appellate judges in an upstate court ruled that a 2019 human rights law violates the constitutional rights of property owners.

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A state law that bans landlords from discriminating against renters who use Section 8 housing vouchers to pay their rent was overturned by a New York appeals court last week, a move that may make finding housing even harder for some low-income renters. 

The case involved a 2022 lawsuit against an Ithaca landlord sued by Attorney General Letitia James after two renters reported being rejected because they had Section 8 vouchers.

A panel of five appellate judges in an upstate court decided against James and ruled that a 2019 human rights law violates the constitutional rights of property owners because “landlords are now forced to consent to governmental searches of their rental properties and records,” Gothamist reported.

A green light for bias?

The ruling creates “risk and hardship” for 120,000-plus Section 8 renter households in New York City, said Evan Henley, staff attorney in the Civil Law Reform Unit at The Legal Aid Society. They “will likely face increased discrimination in an already biased and unaffordable housing market,” he said.

Income discrimination can be difficult to prove. As Brick Underground has reported, while bias from small landlords tends to be more overt—they may tell renters they do not accept vouchers—owners of large properties are more likely to ghost renters.

The Section 8 program requires inspections and other documentation to protect renters from fraud and other abuses. Renters qualify for Section 8 based on their income and typically pay no more than 30 percent of their income as rent, using the voucher to make up the difference.

Some landlords may interpret the state court decision as green light to deny housing to renters who use Section 8 vouchers.

“We anticipate that some New York City landlords will respond to the decision by discriminating against Section 8 voucher holders, but they would be wrong to do so. Section 8 tenants have the means to pay their rent every month, and we expect that the appellate courts covering New York City will disagree with the Third Department’s ruling that the New York State Human Rights Law’s protections for Section 8 voucher holders are invalid,” Henley said.

“Landlords who discriminate should continue to face consequences,” he added.

The ruling does not apply to CityFHEPS, a city-funded benefit program used by over 60,000 NYC tenants to cover a portion of their rent. Because City FHELPS is not a federal program, it is not governed by the regulations referenced in the decision.

Possible appeal

The attorney general’s office was still reviewing the ruling and a possible appeal, Gothamist reported.

“We hope that the state appeals the decision and that the Court of Appeals reverses the ruling,” Henley said.

A city hall spokesperson said the Mamdani administration is “aware of last week’s appellate court’s ruling on the state’s source of income discrimination law and are evaluating any potential implications for New York City. The city continues working to advance fair housing by identifying and removing barriers to equity in the housing market.”

If you experience voucher bias

Despite the ruling, the New York City Human Rights Law (NYCHRL) remains in full effect. Voucher holders can continue reporting discrimination to the NYC Commission on Human Rights.

“We expect the commission to continue to fully enforce the law, and Legal Aid and other advocates will resist any effort to undermine the NYCHRL’s protections, Henley said.

You can report source-of-income discrimination to Commission on Human Rights through an online form, by calling 212-416-0197, or by calling 311 and asking for “human rights.”

Include as much evidence as possible in your complaint—such as copies of text messages, emails, or recordings of phone calls.

The nonprofit Unlock NYC also offers New Yorkers an online tool that can help you gather evidence, record calls, and report discrimination.

 

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Jennifer White Karp

Managing Editor

Jennifer steers Brick Underground’s editorial coverage of New York City residential real estate and writes articles on market trends and strategies for buyers, sellers, and renters. Jennifer’s 15-year career in New York City real estate journalism includes stints as a writer and editor at The Real Deal and its spinoff publication, Luxury Listings NYC.

Brick Underground articles occasionally include the expertise of, or information about, advertising partners when relevant to the story. We will never promote an advertiser's product without making the relationship clear to our readers.

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