Home Forward Rent Increase Pause: Is it Legal and What Oregon Section 8 Landlords Need to Know for 2026

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Hey there, fellow landlords and property managers across the Portland metro and throughout Oregon—it's your team at the Portland Area Rental Owners Association (PAROA) checking in with some straight talk about a notice that's landing in inboxes and mailboxes right now. If you rent to Housing Choice Voucher (HCV, better known as Section 8) holders through Home Forward, you've probably already seen the letter dated December 3, 2025, announcing a full pause on approving any rent increases effective on or after April 1, 2026, through March 31, 2027. Yeah, that's a full year with no bumps allowed, even on lease renewals.

Home Forward's temporary rent increase pause for Section 8 vouchers runs April 1, 2026 through March 31, 2027.

I know—your first reaction might be something like, “Wait, doesn't Oregon law let me raise rent once a year under ORS Chapter 90?” And you're not wrong to ask. We've been digging deep into this (because that's what we do at PAROA—watch your back on the regulatory front), and while it feels frustrating, the short answer is that yes, Home Forward has the legal authority to do this. Let me walk you through it like we're chatting over coffee, no jargon overload promised.

First, a quick recap of what the letter says. Home Forward is citing decreased federal funding and rising program costs as the reason they're hitting the brakes. They're trying to protect the long-term stability of the HCV program, which serves over 7,300 households in our area. They emphasize that landlords are vital partners (thanks for the shout-out, at least), but tough choices have to be made when Uncle Sam's check doesn't stretch far enough. It's not personal—it's budgetary.

Now, the big question: Can they really override Oregon's landlord-tenant laws? The key here is Home Forward's participation in HUD's Moving to Work (MTW) demonstration program. MTW is a special federal designation that gives certain housing authorities—like Home Forward—extra flexibility to waive some standard HUD rules and create local policies that better fit community needs. Their MTW Plan, approved by HUD, explicitly allows them to deny or temporarily pause processing rent increase requests when funding threats loom. This isn't new; they've used similar authority before, like pausing increases during the COVID years to ease racial disparities in rent burdens and stabilize the program.

In a regular (non-MTW) Section 8 setup, you already need PHA approval for any rent increase, and they can deny it if it's not “reasonable” compared to market comps or if it strains their budget. MTW just gives them broader tools to act decisively. Federal HCV rules generally take precedence over conflicting state laws in the subsidized portion of the rent (the Housing Assistance Payment or HAP contract), because you're voluntarily participating in a federal program. ORS 90 still governs the overall tenancy—things like notices, habitability, eviction process—but the rent amount tied to the voucher falls under HUD's umbrella.

How the Home Forward rent increase pause affects Oregon Section 8 landlords' bottom lin

Think of it this way: when you sign that HAP contract, you're agreeing to play by the program's rules, which include the possibility of the PHA saying “not this year” on increases. It's a bit like joining a co-op—you get reliable, on-time payments from the government side, but you also accept their policies. (Dad joke alert: It's like agreeing to split the pizza bill evenly, only to find out one guy ordered extra anchovies and now everyone's paying the same—annoying, but part of the deal.)

What does this mean practically for you?

• No approved increases taking effect in that 12-month window, period.

  
  

• Existing leases roll over at current rent if renewed.

  
  

• You can still submit requests (they'll just sit in limbo or get denied), and the pause doesn't affect non-voucher tenants.

  
  

• If you're worried about covering rising costs (taxes, insurance, maintenance—boy, do we feel that), you'll need to eat it or explore other options like careful screening for higher-paying applicants when units turn (always within fair housing rules, of course).

Is there any workaround? Some landlords consider non-renewing the HAP contract and treating the tenant as market-rate, but that's risky—you could lose the reliable HAP payment altogether, face fair housing scrutiny, or deal with relocation requirements. We strongly recommend talking to a landlord-tenant attorney or giving PAROA a call before making moves like that. Knowledge is power, and the wrong step could cost way more than a paused increase.

Bottom line: this hurts cash flow, no question, especially with everything else going up. But it's legal under federal MTW authority, and it's temporary (fingers crossed funding improves).

We'll keep monitoring and advocating—PAROA is always in your corner pushing for fair treatment of private property owners who make these programs work.

If you've got questions or want to chat through how this hits your portfolio, drop us a line. We're here to help navigate the bumps.

Stay strong out there,

The PAROA Team

www.paroa.org

Sources:

1. Home Forward Letter to Landlords, dated December 3, 2025 (provided document).

2. Home Forward FY2025 Annual Moving to Work Plan – https://www.homeforward.org/wp-content/uploads/2025/02/OR002-Home-Forward_FY2025-MTW-Plan_FINAL.pdf

3. HUD Moving to Work Program Overview – https://www.hudexchange.info/programs/moving-to-work/

4. Oregon Revised Statutes Chapter 90 (Residential Landlord and Tenant) – https://www.oregonlegislature.gov/bills_laws/ors/ors090.html

5. Council of Large Public Housing Authorities (CLPHA) MTW Resources – https://clpha.org/moving-work