Michigan Source-of-Income Law (PA 179, 180, 200) and HOAs

Quick Answer

Effective April 2, 2025, Michigan law prohibits a landlord of a rental unit from denying, terminating or imposing different terms on a tenancy because of the tenant's source of income. The change was made by 2024 PA 179 (which defines source of income in the Landlord-Tenant Act), 2024 PA 180 (which adds the prohibition to the Elliott-Larsen Civil Rights Act), and 2024 PA 200 (which updates the Act's title and real estate definitions). The prohibition applies only to a landlord that, together with related entities, rents five or more units in Michigan. Associations are usually not landlords, but owners who rent condominium units and lots may be, and boards should make sure association rules do not push them toward discrimination.

What the Law Says

Under MCL 37.2502(3), a landlord of a rental unit may not, based on the source of income of an otherwise eligible prospective or current tenant:

• Deny or terminate a tenancy.
• Impose different price, terms, conditions, fees or privileges.
• Make a rental unit unavailable, steer, or discourage the rental.
• Exclude rent vouchers or subsidies when calculating whether a minimum-income requirement is met (with a separate rule for emergency rental assistance).
• Publish advertisements or notices stating a preference or limitation based on source of income.
• Coerce, intimidate or retaliate against anyone exercising these rights.

The act defines "source of income" in MCL 554.601 to include housing assistance, housing choice vouchers, public assistance, veterans' benefits, Social Security, supplemental security income and other retirement programs, and programs run by government or nonprofit entities. It excludes income a prospective tenant cannot show comes from lawful sources, and housing assistance not approved by the responsible agency within 30 days after the landlord provides the required information.

Small Landlord Exception

The prohibition does not apply to a person, including all related entities, who is a landlord of fewer than five rental units in Michigan. A single-unit condominium owner renting out one unit is therefore outside the rule, while an investor owning many units in one or more associations may be inside it.

PA 200 of 2024

PA 200 (enrolled House Bill 4063) was approved January 16, 2025, with an April 2, 2025 effective date. It amends section 501 of the Elliott-Larsen Civil Rights Act and the Act's title to add "source of income." The definition of "real property" in that section includes an interest in a real estate cooperative or condominium. By its terms PA 200 takes effect only if Senate Bills 206 and 207 are also enacted.

What This Means for Associations

The statute regulates landlords, not associations, and it does not address association leasing rules directly. Even so, boards should avoid creating exposure:

• Review leasing rules and tenant screening forms. Do not add income-source questions, or approval conditions that exclude voucher or benefit income, to association rental registration or lease approval.
• Check advertising and notices. If the association or its manager posts rental listings or notices, make sure none states a preference based on source of income.
• Train staff and managers. Front-desk and management staff should know not to discourage applicants because of their income source.
• Coordinate with owner-landlords. Remind owners with multiple rentals that the law may apply to them.
• Keep other restrictions separate. This law does not override valid leasing restrictions in your governing documents; see our guide to rental restrictions in Michigan associations and our Timber Lake v. Gribi summary.

What Is Still Unclear

The statute does not say how it interacts with association-level leasing caps or approval procedures, and I did not find a published court decision applying it to an association. Consult your attorney before changing or enforcing leasing rules.

How APM Helps

APM reviews association rules and forms for compliance risk and helps boards update leasing policies. See our Michigan resources or contact us.

Sources: MCL 37.2502 and MCL 554.601 (as amended by 2024 PA 179 and PA 180, effective April 2, 2025) and 2024 PA 200. This article is general information and not legal advice; fair housing questions should be reviewed by counsel. Last verified October 24, 2026.