A critical exemption in Maine's new tenant-landlord law protects small property owners—but only if you understand the rules.
Most Maine landlords don't realize that LD847, the new state law addressing tenant-landlord relationships and housing vouchers, contains a significant carve-out that could affect how you operate your rental business. And if you own fewer than four units, this exemption directly applies to you.
LD847 (Resolve, to Establish the Commission to Improve Tenant-Landlord Relationships and Increase the Use of Housing Vouchers) creates a source-of-income discrimination prohibition in Maine law. Starting January 1, 2026, this prohibition will prohibit landlords from refusing to rent to tenants based on their source of income—including housing vouchers, subsidies, and other assistance programs.
Violations carry a $1,000 penalty per incident, which creates real financial exposure for landlords who don't comply.
Here's the provision most owners miss: landlords who own fewer than four rental units are entirely exempt from this source-of-income discrimination prohibition. This exemption is codified in Section 3, 5 MRSA §4581-A, sub-§5.
What does this mean in plain terms? If you own one, two, or three rental units, you are not required to accept housing vouchers or other income-based assistance as a source of tenant income. You face no legal obligation to do so, and you face no $1,000 penalty for declining voucher-holding applicants.
Landlords with four or more units do not have this protection. They must accept housing vouchers and other qualifying income sources or face penalties.
Maine has a significant number of small landlords—individuals and small partnerships who own a handful of properties. For these owners, the exemption provides legal clarity: you can continue to set your own tenant-income criteria without worrying about source-of-income discrimination claims.
However, the exemption is narrow. It applies only to the source-of-income discrimination prohibition. Other tenant-landlord laws—fair housing rules, habitability standards, security deposit regulations—still apply to all landlords regardless of portfolio size.
Additionally, while the exemption protects you from state penalties, it doesn't address federal fair housing law or local ordinances that may have their own source-of-income protections. You should verify that your rental practices comply with all applicable laws before relying on this state-level exemption.
The source-of-income discrimination prohibition—and thus this exemption—takes effect on January 1, 2026. Until that date, there is no state-level requirement to accept housing vouchers. After that date, the exemption protects small landlords as described above.
If you own rental property in Maine, understanding where your portfolio size places you relative to this law is essential for compliance and risk management. The difference between three units and four units is not trivial under LD847.
For a detailed, business-focused summary of LD847 and how it applies to Maine rental properties, consult your legal advisor or local property management association.