Fair housing laws exist to ensure everyone has equal access to housing. But for landlords, they can feel like a legal minefield. One wrong question, one careless comment, and you could be facing a discrimination lawsuit. Here's what you need to know to stay on the right side of the law.
What Is the Fair Housing Act?#
The Fair Housing Act (FHA) was passed in 1968 and prohibits discrimination in housing based on certain protected characteristics. It applies to:
- Rental applications
- Lease terms
- Evictions
- Advertising
- Property showings
- Financing
Basically, if it's related to housing, fair housing laws probably apply.
The goal? Ensure equal opportunity in housing for everyone, regardless of who they are.
The Seven Protected Classes (Plus More)#
Under federal law, you cannot discriminate based on:
- Race
- Color
- National Origin
- Religion
- Sex (including gender identity and sexual orientation)
- Familial Status (presence of children under 18)
- Disability
State and Local Additions:
Many states and cities add more protected classes, including:
- Source of income (Section 8, disability payments)
- Age
- Marital status
- Veterans/military status
Always check your local laws—they may be stricter than federal requirements.
What Housing Discrimination Actually Looks Like#
Discrimination isn't always obvious. Here are common violations:
❌ In Advertising:
- "Perfect for young professionals" (age discrimination)
- "Great for singles" (familial status discrimination)
- "No Section 8" (source of income discrimination in some states)
- Using models of only one race in photos
❌ During Screening:
- Asking about pregnancy or plans to have children
- Refusing to rent to families with kids
- Requiring a higher deposit for applicants with disabilities
- Steering applicants to certain units based on race
❌ In Lease Terms:
- Different rent for tenants of different races
- Refusing reasonable accommodations for disabilities
- Enforcing rules differently (e.g., letting some tenants have pets but not others)
❌ During Tenancy:
- Harassing tenants based on protected class
- Retaliating after a fair housing complaint
- Refusing maintenance for certain tenants
Even unintentional discrimination counts. Intent doesn't matter—impact does.
Are There Any Exceptions?#
Yes, but they're narrow:
✅ Owner-Occupied Buildings (up to 4 units):
If you live in the building and it has 4 or fewer units, you may be exempt from some FHA rules (but not all—race discrimination is never allowed).
✅ Single-Family Homes (without a broker):
If you own 3 or fewer single-family homes and don't use a real estate agent or discriminatory advertising, some exemptions apply.
✅ Religious Organizations:
Can prioritize members of their religion in housing they operate.
✅ Senior Housing (55+ or 62+):
Legally allowed to restrict based on age if they meet specific requirements.
But here's the catch: Even if you're technically exempt under federal law, state or local laws might not exempt you. And race-based discrimination is illegal, period.
How to Stay Compliant#
1. Use Objective Criteria
Screen all applicants using the same standards:
- Minimum credit score
- Income-to-rent ratio (e.g., 3x monthly rent)
- Rental history
2. Document Everything
Keep records of:
- Every application
- Screening criteria used
- Reasons for approval/denial
- All communications
3. Train Yourself (and Staff)
Fair housing training isn't just for big companies. Even solo landlords should understand the law.
4. Avoid Subjective Language
Don't say "I have a bad feeling about this person." Say "applicant didn't meet our minimum credit requirement of 620."
5. Provide Reasonable Accommodations
If a tenant with a disability requests an accommodation (e.g., emotional support animal, wheelchair ramp), you generally must grant it unless it causes undue financial burden.
6. Be Consistent
Apply the same rules, fees, and standards to everyone. Consistency = fairness = legal protection.
What Happens If You Violate Fair Housing Laws?#
Penalties vary, but they're serious:
💰 Civil Penalties:
- First violation: up to $25,000
- Second violation (within 5 years): up to $65,000
- Third violation (within 7 years): up to $150,000
⚖️ Lawsuits: Tenants can sue for:
- Actual damages
- Emotional distress
- Punitive damages
- Attorney's fees
🚔 Criminal Charges (Rare but Possible): In cases of egregious, intentional discrimination (especially involving force or intimidation).
Plus, you'll face reputational damage that makes future rentals harder.
Conclusion#
Fair housing laws aren't designed to make your life harder—they're designed to ensure everyone has a fair shot at housing. And the good news? Compliance isn't complicated if you follow one simple rule:
Treat everyone the same.
Use objective criteria, document your decisions, and when in doubt, consult a local housing attorney. The cost of compliance is far less than the cost of a violation.
Be fair. Be consistent. Be legal. Your tenants—and your bank account—will thank you.
