What federal regulation says a family member can't rent section 8?

Federal regulation prohibits family members from renting to each other under the Section 8 Housing Choice Voucher Program to prevent conflicts of interest and ensure program integrity. Specifically, the U.S. Department of Housing and Urban Development (HUD) states that relatives cannot be considered a reasonable landlord for the purposes of the program. This rule helps to maintain fair housing practices and avoid potential abuse of the subsidy system. Exceptions may apply under certain circumstances, but they require prior approval.