Government Shutdown Impact on Rental Housing Guide
The federal government shutdown began October 1, 2025, and it remains unclear how long it will continue.
The Apartment Association of Orange County (AAOC) is committed to providing up-to-date information and resources to help its members understand how the shutdown may affect rental housing operations. This includes information from local housing agencies and the National Apartment Association (NAA).
As of October 7, 2025, one week into the shutdown, the Orange County Housing Authority (OCHA) has reported:
“October 2025 Housing Assistance Payments have been issued, and OCHA remains open to serve the public.”
OCHA also noted that the U.S. Department of Housing and Urban Development (HUD) will be affected by the Congressional Appropriations process for Fiscal Year 2025, which may impact future funding timelines.
Renters with Housing Vouchers (Section 8)
As noted above, OCHA has confirmed that October 2025 Housing Assistance Payments have been issued.
- What happens if Section 8 payments are delayed?
In the event that a government shutdown delays Section 8 rent payments, landlords cannot evict tenants for the late payment of the government-funded portion of rent, nor can they require tenants to pay that amount themselves.
AAOC encourages housing providers to remain patient and understanding during such disruptions. These delays are beyond tenants’ control, and funds will be distributed once federal operations resume. Owners are urged to maintain open communication and continue working cooperatively with their residents throughout the process.
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Can I decline to rent to Section 8 tenants because of the shutdown?
No. Regardless of a government shutdown, landlords cannot base rental decisions solely on an applicant’s use of rental assistance. California’s source-of-income discrimination laws protect tenants who lawfully use subsidies to meet their rental obligations, regardless of any federal funding interruptions.
Federal Employees as Renters
- What if a Federal Employee applies for a rental unit?
Federal employees are being impacted by the shutdown in different ways — some have been furloughed while others continue to work without pay.
While there are no special legal protections for federal employees in this situation, furloughed employees are temporarily not earning income. Housing providers are encouraged to handle these situations with understanding and flexibility when possible.
Renters employed by the federal government may provide landlords with documentation such as:- Proof of furlough status
- W-2 form
- Standard Form 50 (SF-50)
Landlords should encourage renters to communicate promptly about any significant income changes caused by the shutdown.
NAA Guidance:
- NAA Federal Government Shutdown FAQ
- NAA "Communication from Management Company to Property Managers" Template
- NAA "Letter to Impacted Residents" Template
- NAA Recommended Steps for Property Managers