Inclusive Lending

What Is Fair Housing?

April is Fair Housing Month. This marks the anniversary of the Fair Housing Act, a federal law that helps ensure equal access to housing opportunities.

For buyers, renters, landlords, and real estate professionals, fair housing laws impact how homes are marketed, sold, rented, and financed across the country. The core principle is simple: housing decisions should be based on objective factors like financial qualifications, creditworthiness, or rental history, not on certain personal characteristics protected by law.

“Access to housing opportunity shouldn’t depend on who you know, where you come from, or how familiar you are with the system,” said New American Funding Senior Vice President of Growth and Expansion Mosi Gatling.

“When people have clear information, fair access to financing, and professionals committed to opening doors, homeownership becomes possible for more families,” she said.

Learn more on the origins of fair housing laws, what they include, and how they influence real estate transactions.

The history of the Fair Housing Act

The federal Fair Housing Act was enacted in 1968 as part of the Civil Rights Act. It was signed into law by President Lyndon B. Johnson. The law established nationwide rules to prevent discrimination in the sale, rental, and financing of housing.

The law was later expanded through amendments in 1974 and 1988, which added more protected classes and strengthened enforcement provisions. Today, it’s mainly administered by the U.S. Department of Housing and Urban Development (HUD).

While the law has evolved over time through court rulings and regulatory changes, the central goal has remained consistent: promoting fair and equal access to housing.

What the Fair Housing Act covers

The Fair Housing Act covers many aspects of housing transactions. Generally, it bans discrimination in activities like:

• Selling or renting a home
• Advertising housing
• Setting terms or conditions for a sale or lease
• Providing mortgage lending or other housing-related financing
• Offering housing services or facilities

The law broadly applies to the housing industry, including landlords, property managers, real estate agents, lenders, and developers.

There are a few limited exemptions written into the law, such as certain small owner-occupied rental properties.

The seven federally protected fair housing classes

Under federal law, the Fair Housing Act identifies seven protected classes. That means housing providers generally cannot make decisions based on these characteristics.

Those federally protected categories are:

• Race
• Color
• Religion
• Sex
• National origin
• Disability
• Familial status

Familial status includes households with children under 18, pregnant individuals, or those in the process of gaining custody of a child. Disability protections cover both physical and mental impairments that significantly restrict major life activities.

In practical terms, the law means that housing providers must evaluate applicants based on neutral criteria, such as income, credit, or rental history, rather than on personal characteristics protected by the statute.

Additional protections at the state and local level

While the federal Fair Housing Act sets nationwide standards, many states and cities have adopted additional protections that expand on the federal categories.

Common examples of additional protected classes in state or local housing laws may include:

• Age
• Marital status
• Sexual orientation
• Gender identity
• Source of income (such as housing vouchers)
• Military or veteran status
• Ancestry or immigration status

These protections vary widely depending on location. Some states add only a few categories, while others include broader lists. Because of these differences, housing professionals often consult state and local regulations to ensure they are complying with the appropriate rules in their area.

How fair housing rules affect real estate transactions

For most consumers, fair housing laws appear in subtle but significant ways.

For example, real estate advertising should highlight the property’s features, rather than imply that certain groups are preferred tenants or buyers. Similarly, agents and landlords usually rely on consistent application standards, such as credit scores, income requirements, or background checks, so that all applicants are judged by the same criteria.

Real estate professionals receive fair housing training as part of their licensing requirements and continuing education. This helps to ensure that housing transactions are in compliance with the law.

What happens if fair housing discrimination occurs?

If someone believes they have faced discrimination in housing, they can file a complaint with HUD or a state or local fair housing agency.

Complaints generally must be filed within one year of the alleged incident. After submitting a complaint, investigators review the circumstances. This may include examining documents, interviewing witnesses, and assessing whether housing laws were followed.

Some disputes are settled through mediation. Others might go through administrative hearings or court cases.

Mosi Gatling NMLS# 557166