Simon PLC Attorneys & Counselors – February 2026 Memorandum
Compliance with Michigan’s “Source of Income” Legislation
Troy, MI — As of April 2, 2025, Michigan law expressly bans residential landlords with five or more units from rejecting tenants based on source of income and further establishes “source of income” as a protected class under Michigan’s Elliott-Larsen Civil Rights Act.
Public Acts 178 and 179 of 2024 amend 1972 PA 348 (known as the landlord-tenant act) by prohibiting landlords with five or more rental units in Michigan from doing any of the following to a current or prospective tenant based on their source of income:
- Denying or terminating a tenancy.
- Denying them a rental unit or making it unavailable when they would otherwise (i.e., if not for their source of income) be eligible to rent it.
- Attempting to discourage the rental or lease of a rental unit to them.
- Falsely representing that a rental unit is not available for inspection, rental, or lease; knowingly failing to bring a rental listing to their attention; or refusing to allow them to inspect a rental unit.
- Making a distinction or restriction against them in the price, terms, fees, or privileges related to the rental, lease, or occupancy of a rental unit—including, separately and specifically, doing so on the basis of their use of emergency rental assistance.
- Making a distinction or restriction against them in the provision of facilities or services related to the rental, lease, or occupancy of a rental unit.
- If the landlord requires tenants to have a certain threshold level of income, excluding any income in the form of a rent voucher or subsidy (but not emergency rental assistance) in calculating whether those criteria are met.
“Source of income” includes benefits or subsidy programs such as housing assistance, housing choice vouchers provided under 42 USC 1437f, public assistance, veterans’ benefits, Social Security, supplemental security income or other retirement programs, and other programs administered by any federal, state, local, or nonprofit entity. Source of income does not include income that a prospective tenant cannot demonstrate is derived from sources and activities allowed by law and is provided on an ongoing basis.
With this legislation, Michigan joined eighteen other states having laws that bar landlords from rejecting tenants solely because of housing vouchers. Additionally, to date, sixteen Michigan cities have ordinances restricting source of income discrimination.
Additionally, Public Act 180 amends Elliott-Larsen so that renters who believe that landlords are denying them housing based on source of income may file a complaint with the Michigan Department of Civil Rights or a lawsuit in court.
Landlords subject to these laws can comply while still mitigating risks, with steps including having clear written requirements for credit scores and minimum monthly income, using compliant language in advertising, and following consistent procedures for tenant screening, which is still allowable. And of course, a carefully drafted lease agreement containing clear provisions on tenant responsibilities and penalties for breach is crucial.
Our Firm is available to assist landlords with questions and compliance issues, and to advise on any amendments or decisions issued under these new laws.
N.B. Not Legal Advice: Please contact us if you would like to discuss the facts and circumstances of your specific matter. Simon PLC Attorneys & Counselors expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this memorandum. The information contained herein may not reflect current legal developments and is provided without any knowledge as to the recipient’s location, industry, identity or specific circumstances. No recipients of this content, clients or otherwise, should act, or refrain from acting, on the basis of any content included in this memorandum without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the jurisdiction for which the recipient’s legal issue(s) involve. The application and impact of relevant laws varies from jurisdiction to jurisdiction, and our attorneys do not seek to practice law in states, territories and foreign countries where they are not properly authorized to do so.
