Fair Housing Laws for Landlords: What You Can and Cannot Do
The Fair Housing Act: What It Covers
The Fair Housing Act of 1968, amended in 1988, is the federal law that prohibits discrimination in housing. It applies to the sale, rental, and financing of housing and covers landlords, property managers, real estate agents, and lenders. Violations carry severe penalties — and ignorance of the law is never a defense.
The Fair Housing Act protects seven classes:
- Race
- Color
- Religion
- National origin
- Sex (including sexual harassment and, under recent interpretations, sexual orientation and gender identity)
- Disability (physical and mental)
- Familial status (families with children under 18, pregnant women)
The federal law applies to most rental housing. The limited exemptions: owner-occupied buildings with 4 or fewer units (the “Mrs. Murphy exemption”) and single-family homes rented without a broker — but these exemptions don’t apply to advertising, and many state/local laws eliminate them entirely.
In practice, if you’re a landlord renting property in the United States, fair housing law applies to you.
State and Local Protections Go Further
Many states and cities add protections beyond the federal seven. Common additions include:
- Sexual orientation and gender identity — Protected in 23+ states and many cities
- Source of income — Protected in 16+ states and growing. This means you cannot refuse a tenant solely because they pay with housing vouchers (Section 8), Social Security, or other government assistance.
- Age — Some states prohibit age discrimination beyond the familial status protection
- Veteran or military status — Protected in several states
- Marital status — Protected in many states (you cannot refuse to rent to unmarried couples)
- Immigration status — Some cities prohibit landlords from inquiring about immigration status
- Lawful occupation — A few jurisdictions protect against discrimination based on legal employment
Check your specific state and city ordinances. A practice that’s legal under federal law may violate state or local protections. For example, refusing a Section 8 voucher holder is legal under federal law but illegal in states with source-of-income protections.
What Landlords Cannot Do
Fair housing law prohibits discriminatory actions at every stage of the rental process. These aren’t just “major” discrimination — subtle, unintentional discrimination counts too.
Refusing to Rent or Setting Different Terms
You cannot refuse to rent to someone, charge higher rent, require a larger security deposit, or offer different lease terms based on any protected characteristic. This includes declining to show a property, claiming a unit is unavailable when it isn’t, or steering applicants toward specific units based on their race, religion, or family status.
Discriminatory Screening Criteria
Your screening criteria must apply equally to all applicants. You can require a 620 credit score and income of 3x rent — but you must apply these standards to every applicant, without exception. Relaxing standards for one applicant and tightening them for another based on protected characteristics is discrimination.
Discriminatory Advertising
Listing language matters. You cannot state or imply a preference for specific demographics in your rental listings. Prohibited phrases include anything suggesting who should or shouldn’t apply based on protected classes. Our guide on how to list a rental property covers compliant listing language in detail.
Asking About Protected Characteristics
Don’t ask applicants about their religion, national origin, disability, family planning, or marital status. You can ask how many people will occupy the unit (for reasonable occupancy standards), but you cannot ask whether the occupants are related, whether someone has children, or whether someone plans to have children.
What Landlords Can Legally Do
Fair housing law does not prevent landlords from making smart business decisions. You have wide latitude to screen applicants and enforce lease terms — as long as you do it consistently.
- Screen all applicants equally — Run credit checks, background checks, and employment verification on every applicant. Apply the same criteria to everyone.
- Set financial requirements — Require income of 3x rent, a minimum credit score, and verifiable employment. These are business criteria, not discrimination.
- Enforce lease terms uniformly — If the lease prohibits smoking, late payments, or unauthorized occupants, enforce these rules the same way for every tenant.
- Choose between qualified applicants — When multiple applicants meet your stated criteria, you can choose based on application order (first qualified applicant gets it), highest qualifications, or longest rental history. Document your selection reasoning.
- Set reasonable occupancy standards — HUD’s general guideline is two people per bedroom. Some local codes differ. Occupancy standards must be based on legitimate safety and health concerns, not a desire to exclude families.
- Require renters insurance — You can require all tenants to carry renters insurance with minimum liability coverage. This is a business requirement, not discrimination, as long as it applies to every tenant.
Advertising: What You Can and Cannot Say
The line between describing your property and describing your ideal tenant is where landlords get into trouble.
| Prohibited Language | Legal Alternative |
|---|---|
| “No children” | “One-bedroom apartment” (let the size speak) |
| “Christian household preferred” | “Located near First Baptist Church” (describing location is fine) |
| “Ideal for young professionals” | “Close to downtown office district” |
| “No wheelchair ramps” | “Second floor unit, walk-up” (factual description) |
| “English speakers only” | No legal alternative — this is prohibited |
| “Perfect for single occupant” | “Studio apartment, 450 sqft” |
| “No Section 8” (in source-of-income states) | Cannot refuse based on payment source where protected |
| “Mature tenants preferred” | “Quiet building with soundproofed walls” |
The rule of thumb: describe the property’s features, location, and amenities. Never describe the type of person you want as a tenant. Let your screening criteria — applied equally to all applicants — determine who qualifies.
Photos and Images in Listings
Fair housing considerations extend to the photos you use in advertising. Avoid using photos that depict only one demographic group of people, which could imply a preference. Photos of the property itself — exterior, rooms, amenities, neighborhood — are always safe. If you include lifestyle imagery, use diverse representation or stick entirely to property photos. The same principle applies to social media posts promoting your rental — the images you choose should not suggest a preferred tenant demographic.
Reasonable Accommodations and Modifications
Disability protections under fair housing law require landlords to make two types of adjustments:
Service Animals and Assistance Animals
You must allow service animals and emotional support animals (ESAs) even if your property has a no-pet policy. You cannot charge a pet deposit, pet rent, or pet fee for assistance animals. You can request documentation from a healthcare provider verifying the disability-related need for the animal, but you cannot ask about the nature of the disability itself.
What you can do:
- Request a letter from a licensed healthcare provider (not an online ESA letter mill — HUD has cracked down on these)
- Hold the tenant responsible for any damage caused by the animal
- Deny a specific animal if it poses a direct threat to safety that cannot be mitigated
Reasonable Modifications
Tenants with disabilities can make reasonable modifications to the unit at their own expense — grab bars, ramp installation, wider doorways, lower countertops. You can require the tenant to restore the property to its original condition at move-out (at their expense), but you cannot refuse the modification if it’s needed for the tenant to use and enjoy the dwelling.
Policy Accommodations
You may need to adjust rules and policies for tenants with disabilities. Examples: allowing a tenant with a mobility disability to park closer to the entrance (even if that spot isn’t normally assigned), waiving a guest limit for a live-in aide, or allowing a tenant with a cognitive disability additional time to respond to notices.
Penalties for Fair Housing Violations
Fair housing enforcement comes through HUD complaints, state human rights commissions, and private lawsuits. The consequences are severe:
- HUD complaints — HUD investigates and can refer cases to the Department of Justice. Civil penalties up to $21,663 for a first offense, $54,157 for a second within 5 years, and $108,312 for additional offenses.
- Private lawsuits — Denied applicants or aggrieved tenants can sue in federal or state court. Damages include actual damages (emotional distress, moving costs, rent differential), punitive damages (often $10,000-$100,000+), and attorney fees.
- Department of Justice action — For pattern or practice cases. The DOJ can seek injunctive relief, monetary damages, and civil penalties.
- State and local enforcement — Additional penalties under state law, which may exceed federal penalties.
A single fair housing complaint can cost a landlord $20,000-$50,000+ in legal defense costs, even if the complaint is ultimately dismissed. Prevention — consistent screening, proper advertising, documented processes — is far cheaper than defense.
Frequently Asked Questions
Does fair housing law apply to small landlords?
The federal Mrs. Murphy exemption excludes owner-occupied buildings with 4 or fewer units from some (not all) provisions. But most state and local laws eliminate this exemption — meaning the law applies to you regardless of property size. The advertising provisions of fair housing law apply to everyone, including exempt properties. In practice, treat fair housing as if it applies fully to your rental business.
Can I reject applicants with criminal records?
Yes, but with limitations. HUD guidance (2016) states that blanket criminal history bans can have a disparate impact on racial minorities and may violate fair housing law. Instead, evaluate criminal records individually: consider the type of crime, severity, and how much time has passed. A 20-year-old misdemeanor is different from a recent felony. Document your reasoning for each decision. Apply the same evaluation process to every applicant through your screening service.
Can I refuse Section 8 tenants?
Under federal law, accepting Section 8 vouchers is voluntary. But 16+ states and many cities have “source of income” protections that make it illegal to refuse tenants based on how they pay — including government vouchers. Check your state and local laws. If source of income is protected in your jurisdiction, you must evaluate Section 8 applicants using the same criteria as all other applicants.
Can I limit rentals to adults only?
Only in designated “senior housing” communities that meet specific legal criteria (Housing for Older Persons Act: at least 80% of units occupied by someone 55+ and published policies demonstrating intent to serve seniors). Regular rental properties cannot exclude families with children. You can set occupancy limits based on bedroom count and square footage, but these limits must be reasonable and applied uniformly. Consult a tenant law attorney if you’re unsure about occupancy standards.
How do I protect myself from fair housing complaints?
Written, consistent criteria are your best defense. Document your screening standards before listing the property. Apply them equally to every applicant. Keep records of every application, screening result, and decision for at least 3 years. Train anyone who handles tenant interactions — maintenance staff, showing agents, property managers — on fair housing basics. If you use a property management company, verify that their processes comply with fair housing law, because their violations are your liability. When communicating rent increases or addressing lease violations, apply the same approach to every tenant. Review security deposit rules and rent pricing to confirm your practices are uniform across all properties and tenants. For tips on maintaining a well-managed portfolio, see our guide to the best states for rental properties.