The Ultimate List: States Where Landlords Cannot Legally Demand 3 Times The Rent (2025)

The "3 times the rent" income requirement is one of the most common hurdles for renters across the United States, yet it is not a federal law. This widely adopted industry standard—where a tenant's gross monthly income must be at least three times the monthly rent—is a landlord screening tool designed to minimize the risk of default. However, as of late 2024 and heading into 2025, a growing number of states and municipalities are enacting powerful tenant protection laws that legally restrict or outright prohibit landlords from applying this rigid 3x rent rule, particularly for vulnerable populations and those using housing assistance.

This article provides the most current, verified information on where this once-universal screening criterion is now illegal, focusing on the legal mechanism that most frequently challenges the rule: Source of Income (SOI) Discrimination laws. Understanding these protections is crucial for both tenants seeking housing and landlords navigating an evolving legal landscape.

The Legal Loophole: Source of Income (SOI) Discrimination Laws

The primary way the 3x rent rule is legally challenged and restricted is through Source of Income (SOI) discrimination laws. These laws add lawful sources of income, such as housing vouchers (like Section 8), disability payments, or alimony, to the list of protected characteristics under fair housing legislation.

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For a tenant using a Housing Choice Voucher (HCV), their portion of the rent is typically capped at around 30% of their income, with the government paying the rest.

In jurisdictions with SOI protection, a landlord cannot legally apply the 3x rent rule to the *total* rent amount. Instead, they must only consider the tenant's *actual portion* of the rent when calculating the income ratio. This effectively makes the 3x rent rule illegal for voucher holders in these areas.

List of States and Jurisdictions Restricting the 3x Rent Rule

While no state has a blanket law that says "no landlord can ever ask for 3x rent" for all tenants, at least 18 states and numerous local jurisdictions have Source of Income protection laws that restrict the rule for voucher holders. This list reflects the most current legal environment for 2025.

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States with Statewide Source of Income Protection

In these states, landlords are generally prohibited from discriminating against tenants based on their source of income, which includes housing vouchers, thereby restricting the application of the 3x rent rule for those specific applicants.

• California: Statewide SOI protection ensures that landlords must consider the tenant's individual rent payment, not the gross rent, for income calculations.
• Colorado: The state's Fair Housing Act includes SOI as a protected class, making the blanket 3x rent rule illegal for voucher holders.
• Delaware: Has comprehensive SOI protections.
• Illinois: The Illinois Human Rights Act prohibits discrimination based on source of income, preventing the 3x rent rule from being applied to the full rent of a voucher holder.
• Maine: Offers statewide protection for source of income.
• Maryland: A statewide law prohibits discrimination based on source of income.
• Massachusetts: Has strong tenant protections, including SOI.
• Minnesota: Includes SOI as a protected class.
• New Jersey: Prohibits discrimination based on source of lawful income.
• New York: A key state where SOI protection is strong, making the 3x rent rule inapplicable to the full rent amount for voucher recipients.
• North Dakota: Has a statewide SOI law.
• Oregon: The state's fair housing laws protect tenants based on their source of income.
• Rhode Island: Included in the growing list of states with SOI laws.
• Vermont: Offers statewide protection.
• Virginia: New Fair Housing protections, often referred to as 'source of funds' in the law, make it illegal to discriminate based on income source.
• Washington: Has statewide SOI protections.

Key Cities and Counties with Stronger Local Restrictions

Even in states without a statewide SOI law, many major cities and counties have enacted their own local ordinances, often with even stricter rules. These local laws are critical to know.

• Kansas City, Missouri: The city passed an ordinance that explicitly prevents landlords from requiring 3 times the full rent amount from tenants using housing vouchers.
• Boise, Idaho: The city has enacted tenant protections, including a proposed or enacted source-of-income ordinance that prevents landlords from denying a rental based on income source.
• Chicago, Illinois: While Illinois has a state law, Chicago's local ordinance is particularly stringent in protecting tenants.
• Washington D.C.: The District has some of the strongest tenant protections in the nation, including SOI.
• Philadelphia, Pennsylvania: Has a local ordinance prohibiting SOI discrimination.
• New Orleans, Louisiana: The city has enacted local SOI protections.

The Truth About the Georgia and California 3x Rent Rumors

Recent viral discussions have suggested that new laws in Georgia and California have universally banned the 3x rent requirement. This information is largely a misunderstanding or conflation of different laws.

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Georgia’s HB 404 (Safe at Home Act)

The "Safe at Home Act," or Georgia House Bill 404 (HB 404), was signed into law and became effective on July 1, 2024. This law is a significant win for tenants, but it focuses on two main areas, neither of which is a universal cap on the income-to-rent ratio:

• Duty of Habitability: It establishes a minimum "duty of habitability," requiring landlords to ensure residential rentals are "fit for human habitation."
• Security Deposit Limit: Crucially, HB 404 was rumored to limit the income requirement, but it actually limits the security deposit amount, often to twice the monthly rent.

Conclusion for Georgia: There is no statewide law in Georgia that prevents a landlord from requiring non-voucher tenants to earn 3x the monthly rent. The rumors confused the security deposit limit with an income limit.

California’s AB 12 and Income Requirements

California is often cited because of its strong tenant protections, but the restrictions on the 3x rent rule are indirect:

• Source of Income Protection: As noted, California has statewide SOI protection, which is the key restriction for voucher holders.
• Security Deposit Cap (AB 12): A new law, AB 12, effective July 1, 2024, limits security deposits to one month’s rent for most tenants. This is a financial limit, not an income-to-rent ratio limit.

Conclusion for California: While a landlord can still ask a non-voucher tenant to meet a 3x rent standard, they cannot use that standard to discriminate against a tenant whose rent is subsidized by a legal source of income.

Entity List: Key Terms and Organizations

To fully understand the restrictions on the 3x rent rule, it is important to be familiar with the following entities and legal concepts:

• Source of Income (SOI) Discrimination: A protected class under various fair housing laws that prevents landlords from denying tenants based on the legal source of their income (e.g., housing vouchers, Social Security, alimony).
• Housing Choice Voucher (HCV) Program: Federally funded program (commonly known as Section 8) that assists very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market.
• Fair Housing Act: The federal law that prohibits discrimination in the sale, rental, and financing of housing based on race, color, religion, sex, national origin, familial status, and disability.
• HUD (U.S. Department of Housing and Urban Development): The federal agency responsible for national policy and programs that address America's housing needs.
• The 30% Rule: A long-standing financial guideline suggesting a household should spend no more than 30% of its gross monthly income on rent and utilities.
• Landlord-Tenant Law: The body of law governing the rental of commercial and residential property.
• AB 12 (California): State law effective July 2024 limiting security deposits.
• HB 404 (Georgia): State law effective July 2024 establishing a duty of habitability.
• National Low Income Housing Coalition (NLIHC): An organization that advocates for affordable housing policies.
• Tenant Screening Criteria: The set of requirements (income, credit score, rental history) used by landlords to evaluate prospective renters.
• Gross Monthly Income: A tenant's total income before any taxes or deductions are taken out.
• Affordable Housing: Housing units with rent restrictions to ensure affordability for low- or moderate-income residents.

The Future of Tenant Screening Criteria

The trend is clear: the traditional 3x rent rule is facing increasing legal scrutiny and restriction, particularly in tenant-friendly states and major metropolitan areas. For most tenants without a housing voucher, the 3x rent rule remains a common and legal screening criterion. However, the rise of Source of Income protection laws is forcing landlords to adopt more nuanced and equitable screening policies.

As housing affordability crises continue, more states are expected to follow the lead of California, New York, and Illinois by adopting statewide SOI laws. This shift will continue to erode the universality of the 3x rent requirement, creating a fairer housing market for tenants relying on various forms of lawful assistance. Landlords must stay current on local ordinances, as a city-level law can override a less restrictive state standard.