What Is Fair Housing Act?

Why Every Landlord Must Know the Fair Housing Act

The Fair Housing Act was passed in 1968 and has been strengthened several times since. It applies to almost every landlord in the country, and ignorance of the law is not a defense. You do not have to intend to discriminate. If your policies or actions have a discriminatory effect, you can be held liable.

This is not just about being a decent person (though that matters too). Fair housing violations carry serious financial consequences. A single complaint can cost you $20,000 or more in fines, plus damages, plus legal fees. And fair housing testers actively look for violations. They send fake applicants to your listing specifically to see if you treat them differently.

The Seven Protected Classes

Under federal law, you cannot discriminate based on:

• Race: Any race or ethnicity
• Color: Skin color, which is treated separately from race
• National origin: Where someone was born or their ancestry
• Religion: Any religious belief or lack thereof
• Sex: Including gender identity and sexual orientation under recent legal interpretations
• Familial status: Families with children under 18, pregnant women, people in the process of adoption
• Disability: Physical or mental disabilities, including recovering addicts (but not current illegal drug users)

Many states and cities add additional protected classes. Common additions include source of income (Section 8 vouchers), marital status, age, military/veteran status, and sexual orientation (in states where it is not yet covered under "sex"). Check your local laws.

What Counts as Discrimination

Discrimination is not always obvious. Here are actions that violate the Fair Housing Act:

Refusing to rent. Telling an applicant the unit is no longer available when it is, because of their race, religion, or family status. Even if you have another reason you could cite, if the real motivation is discriminatory, it is illegal.

Different terms or conditions. Charging higher rent, requiring a larger security deposit, or applying stricter screening criteria to applicants based on a protected class.

Discriminatory advertising. Saying "perfect for young professionals" (excludes families), "Christian household" (religious discrimination), or "English speakers only" (national origin). Even the photos in your listing can be problematic if they only show people of one race.

Steering. Directing tenants to certain units or buildings based on their race or national origin. "You would probably be more comfortable in building B" is a red flag.

Refusing reasonable accommodations. A disabled tenant requests a grab bar in the shower or an emotional support animal in a no-pets building. You must allow reasonable modifications (at the tenant's expense for physical changes) and reasonable accommodations (policy exceptions).

Real Example: How a Violation Happens

You own a quiet 4-unit building. A couple with three kids (ages 2, 5, and 8) applies for your 2-bedroom unit. You think the unit is too small for a family of five, so you tell them you have a "two-person-per-bedroom" policy and reject them.

Problem: occupancy standards based on familial status can violate the Fair Housing Act. HUD generally considers two people per bedroom reasonable, but local codes may differ, and you cannot set standards specifically to exclude families. If a single adult with a partner would be accepted in the same 2-bedroom, rejecting the family looks discriminatory.

The family files a HUD complaint. An investigation follows. You spend $3,000 on a lawyer. HUD finds probable cause. You settle for $15,000 plus you agree to attend fair housing training. Total cost: $18,000+ and a stain on your reputation.

How to Stay Compliant

Step 1: Create written screening criteria. Decide your minimum credit score, income requirements (typically 3x rent), and background check standards BEFORE you list the unit. Apply these criteria identically to every applicant. Document your rental application process.

Step 2: Use the same application process for everyone. Same application form, same screening service, same questions. Do not ask some applicants about their family situation and not others.

Step 3: Keep records. Save every application, screening report, and communication for at least 3 years. If someone files a complaint, you need to show that your decisions were based on legitimate, non-discriminatory criteria.

Step 4: Train yourself on reasonable accommodations. If a tenant requests a modification or accommodation related to a disability, you must engage in an interactive process. You cannot just say no. Common requests: emotional support animals, reserved parking for mobility issues, grab bars, visual doorbells for deaf tenants.

Step 5: Review your advertising. Remove any language that could imply a preference. Describe the property, not the ideal tenant. "3-bedroom apartment with large backyard" is fine. "Perfect for a quiet retired couple" is not.

Common Mistakes

Inconsistent screening. Running a credit check on one applicant but not another. Accepting a lower income ratio for one tenant but not another. Inconsistency is the easiest way to prove discrimination, even if you did not intend it.

Stating preferences in listings. "No kids" is blatantly illegal (familial status). "Walking distance to churches" could imply religious preference. "Safe neighborhood" has been challenged as racial coding. Stick to describing the property.

Blanket no-pet policies that deny service animals. Service animals and emotional support animals are not pets under the Fair Housing Act. You cannot charge pet deposits for them. You cannot deny them even if you have a no-pet policy. You can request documentation of the disability-related need.

Asking prohibited questions. "Do you have kids?" "Where are you from?" "Do you go to church?" These questions are off-limits during the application process. Stick to questions about income, rental history, and creditworthiness.

Frequently Asked Questions

What are the protected classes under the Fair Housing Act?

The seven federal protected classes are race, color, national origin, religion, sex (including gender identity and sexual orientation as of recent interpretations), familial status (families with children under 18), and disability. Many states and cities add additional protected classes like source of income or marital status.

Does the Fair Housing Act apply to all landlords?

Nearly all. The only exemptions are owner-occupied buildings with 4 or fewer units (the "Mrs. Murphy" exemption), single-family homes rented without a broker, and certain religious organizations and private clubs. However, discriminatory advertising is never allowed, even for exempt properties.

Can I refuse to rent to someone with a criminal record?

Blanket bans on criminal records have been challenged under the Fair Housing Act because they can disproportionately affect certain racial groups (disparate impact). HUD guidance recommends case-by-case evaluation considering the nature of the crime, how long ago it occurred, and whether it is relevant to tenancy. Some states and cities ban criminal record screening entirely.