You do not lose your Section 8 benefits when you lose income. When your income decreases, your contribution to the rent also decreases. If you do not have any income, your contribution to the rent is zero.
What Happens When You Lose Income
Notifying Section 8
You must notify your housing authority of your income change within five to 30 days, depending on your location. You will be responsible for your previous portion of the rent until you notify your authority; failing to pay it can lead to eviction.
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Notifiying Your Landlord
You do not have to send formal notice to your landlord about your loss of income because the housing authority will send notification of the change in rent amounts. However, you may want to give him a heads-up just in case there is a delay on the housing authority's end. This is especially true if the income loss occurred near the rental due date.
Income You Must Report
You must report any income you receive from unemployment benefits, Social Security or other social service programs. All section 8 programs consider these payments as forms of income and your housing authority could evict you for fraud if you fail to report them.