HUD Handbook 4350.3 § 6-28
Form of Payment (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
A. An owner may require any tenant to pay the security deposit or the last month's
rent in a guaranteed form (e.g., money order, cashier's check, bank check).
B. In all other instances, an owner must accept a tenant's personal check.
C. If the tenant bounces a rent check, thereafter the owner may refuse to accept the
tenant's personal check. The owner may require the tenant to pay rent in a
guaranteed form as identified above.
REMINDER: Owners must be consistent in their treatment of all tenants.HUD Handbook 4350.3 REV-1 CHG-4 § 6-28 establishes rules about which forms of payment property owners may accept or require in HUD-assisted housing. Owners are permitted to require guaranteed payment forms—such as money orders or cashier's checks—specifically for security deposits and last month's rent, but must otherwise accept personal checks. If a tenant's check is returned for insufficient funds, the owner may then require that tenant to pay future rent in a guaranteed form. Throughout, owners must apply these payment policies consistently across all tenants.
Plain English — not legal advice.
Under HUD Handbook 4350.3 REV-1 CHG-4 § 6-28, compliant operators of HUD-assisted properties generally accept personal checks for regular rent payments unless a tenant has previously had a check returned unpaid. Owners who wish to require guaranteed payment forms—such as money orders or cashier's checks—limit that requirement to security deposits, last month's rent, or situations following a bounced check. A key compliance point highlighted in § 6-28 is that whatever payment policies an owner adopts must be applied uniformly to all tenants, avoiding selective or inconsistent enforcement.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 6-28 of HUD Handbook 4350.3 REV-1 CHG-4 gives tenants in HUD-assisted housing the right to pay rent by personal check in most circumstances, unless they have previously had a check returned unpaid. If an owner demands a guaranteed payment form for regular rent without a prior bounced-check history, that practice may not align with the requirements of § 6-28. Tenants who believe a payment policy is being applied inconsistently or improperly may consider contacting the U.S. Department of Housing and Urban Development or a local tenant-rights organization to understand available options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 25, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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