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Housing Discrimination: What It Is and How to Protect Yourself

Updated
Kimberly Rotter, AFC®
By: Kimberly Rotter, AFC®

Our Mortgages Expert

Ashley Maready
Check IconFact Checked Ashley Maready
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In the U.S., it's against the law for housing providers to discriminate against protected categories of people. Direct providers of housing (property owners, landlords, real estate agents, property managers, and others) must treat all potential buyers, rental applicants, and tenants fairly.

The best way to protect yourself from housing discrimination is to know your rights. Here are some tips to help you recognize discrimination when you see it, and know what to do when it happens.

What is housing discrimination?

Housing discrimination happens when someone is treated badly or unfairly because they have a certain characteristic. It is illegal to create barriers to housing or treat someone differently because of their race, religion, color, national origin, disability, family status, gender, or for refusing sexual advances.

Housing discrimination isn't always overt. A sign that says "no Asians" would be very clear, and the media and local civil rights groups would quickly address it. Subtle discrimination is more insidious -- a real estate agent encourages you to shop in a neighborhood where more residents are "like you"; a potential landlord fishes for information about your extended family, your first language, or your food choices; a landlord delays repairs in your unit, but addresses other tenants' concerns in a timely manner.

If something like this impacts you negatively and it's based on your membership in a protected class, it's illegal.

What is the Fair Housing Act?

The Fair Housing Act is a federal law that protects certain categories of people from unfair treatment in housing situations. The Act became law in 1968 and was expanded in 1974 and 1988. Its original purpose was to prohibit housing discrimination based on race. Prior to 1968, the practice of redlining kept Black Americans segregated in separate communities. Redlining is marking areas on a map in order to systematically deny services, including mortgages, to people in that area. Black neighborhoods were marked in red. Most Fair Housing complaints reviewed by the U.S. Justice Department still involve racial discrimination.

The law was updated in 1974 to prohibit discrimination based on gender. In 1988 the law was updated again to add family status and disability as protected classes.

Who is protected by the Fair Housing Act?

The Fair Housing Act says you may not discriminate based on these protected categories:

  • Race
  • Color
  • Religion
  • Sex, including sexual harassment
  • Nationality
  • Family status
  • Disability

These categories are complex, and cover wide populations. For example, if a landlord refuses to provide new locks for a domestic violence victim, that may be sex discrimination. The "sex" category also protects against discrimination based on gender identity. Discrimination that happens when a housing provider mistakenly believes you're in one of these protected categories is also illegal.

Depending on where you live, state and local laws augment federal Fair Housing law. For example, your area might prohibit illegal housing discrimination based on:

  • Sexual orientation
  • Criminal history
  • Immigration status
  • Lawful occupation
  • Age
  • Creed
  • Marital status
  • Military status
  • Lawful source of income

Not every characteristic is protected the same way. For example, although familial status is protected, a landlord can enforce legal occupancy limits. In many areas, two people per bedroom is considered fair. So a couple with three children may legally be turned away from a two-bedroom unit.

Similarly, age is protected, but behaviors that make you an unsuitable tenant are not. The landlord can't refuse to show an available unit to an elderly person, but can refuse to rent to that prospective tenant if their previous landlord says the tenant frequently left the stove on or forgot to pay the rent.

When do fair housing laws not apply? Rental housing landlords are allowed to discriminate against people with unprotected characteristics. That includes prospective tenants who:

  • Smoke
  • Have pets (not registered as a service animal or emotional support animal)
  • Lie on an application
  • Lack stable employment
  • Lack sufficient income
  • Have poor credit
  • Refuse a credit check
  • Have a poor rental history

Want to learn more? Check out The Ascent's guide to occupancy fraud.

What is prohibited by the Fair Housing Act?

There are many actions considered illegal discrimination under the Fair Housing Act. Here are a few examples of things a potential landlord or seller cannot do if the action is based on a protected category:

  • Refuse to lease, rent, or sell a property
  • Refuse to negotiate to lease, rent, or sell a property
  • Advertise a home with a preference or limitation related to a protected category (such as "no children," or "discount for Japanese tenants")
  • Say that a unit is not available when it is
  • Steer you to different housing or discourage you from renting or buying
  • Change the price
  • Create different terms to rent or buy, such as requiring that people of color provide proof of citizenship
  • Create different rules or privileges during your tenancy
  • Require you to move because you are a member of a protected group
  • Delay or refuse to make repairs
  • Appraise a property lower than fair market value

Who is exempt from the Fair Housing Act?

The Fair Housing Act does not cover all housing. Some types of senior housing, for instance, are exempt from age discrimination laws. Single-family homes that are not advertised or brokered are exempt from the Fair Housing law, as long as the landlord owns no more than three such homes. Owner-occupied properties with up to four units are also exempt. Housing operated by a private club or religious organization may limit occupancy to members only. That doesn't mean those housing providers can legally discriminate, only that the Fair Housing Act may not apply -- discrimination is also prohibited by the Civil Rights Act and other laws.

What can I do if I am being discriminated against?

It can be hard to prove discrimination, so get familiar with local fair housing laws and federal protections.

If you're shopping for a home loan, stay alert. Lenders for first-time home buyers today tend to be helpful. But one way redlining works is that a mortgage lender charges higher prices to people they don't want to work with. Use a mortgage calculator to confirm the numbers and get multiple quotes when you're ready to buy.

If a landlord, seller, real estate agent, or property manager acts in a manner that you believe violates your rights, document it. For example, if you come across an apartment ad that says "no children," take a screenshot or email it to yourself.

Make a housing discrimination complaint online with the U.S. Department of Housing and Urban Development, or call your nearest HUD office for assistance.

You can also make a fair housing complaint with your local or state government. The Fair Housing Justice Center can point you to local organizations that might be able to help. The National Fair Housing Alliance is also a good resource for this purpose. If they can't point you to assistance in your area, do an internet search for "fair housing."

If you think a mortgage lender is discriminating against you, file a complaint with the Consumer Finance Protection Bureau.

Still have questions?

Here are some other questions we've answered:

FAQs

  • Indirect discrimination is when a rule or policy applies to everyone, but puts a certain group at a disadvantage. For instance, if a landlord says they're looking for tenants who are families with children, they may be indirectly discriminating against retirees. Discrimination based on age is illegal in the U.S.

    Another term you might hear is "disparate impact." It's a form of indirect discrimination. For example, if a landlord requires that the head of household earn enough money to afford the rent, two-income families could be denied housing.

  • Mortgage lenders have been accused in the recent past of steering people in certain neighborhoods (heavily African-American and Latino) toward more expensive loans, even when they might have qualified for better terms. This results in people paying more for a home than is warranted, making homeownership even more difficult to achieve for historically marginalized groups.

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