Iowa Fair Housing Laws: What's on the Real Estate Exam

Fair housing is tested on both sections of the Iowa PSI exam. Iowa has a broader set of protected classes than federal law, and the exam tests whether candidates know the difference.

Federal Protected Classes (7 Classes)

The federal Fair Housing Act of 1968 prohibits discrimination based on:

1. Race
2. Color
3. National origin
4. Religion
5. Sex
6. Familial status
7. Disability

These seven apply in Iowa and all other states.

Iowa's Additional Protected Classes

Iowa adds four classes beyond the federal seven:

• Sexual orientation
• Gender identity
• Marital status
• Source of income (e.g., Section 8 vouchers, alimony, disability payments)

The Iowa Civil Rights Act administers these protections through the Iowa Civil Rights Commission. This is one of the most tested Iowa-specific topics — expect at least one question asking which classes Iowa adds beyond federal law.

Prohibited Acts

The following acts violate fair housing law in Iowa:

• Refusing to sell or rent to a protected class member
• Steering — directing buyers/renters toward or away from areas based on protected class
• Blockbusting — inducing sales by representing that protected class members are moving in
• Redlining — denying loans or insurance in areas based on racial or demographic composition
• Discriminatory advertising — using language that signals preference or restriction based on protected class
• Misrepresenting availability — falsely claiming a property is unavailable to a protected class member

Fair Housing Exemptions

Under the federal Fair Housing Act (which Iowa mirrors):

• Single-family homes sold/rented by owner without a broker (advertising must still be non-discriminatory)
• Owner-occupied buildings with 4 or fewer units (Mrs. Murphy exemption)
• Religious organizations limiting housing to members
• Private clubs limiting housing to members

Important: These exemptions do NOT apply to licensees. A real estate agent cannot discriminate even when assisting a seller who would personally qualify for an exemption.

Source of Income Protections

Iowa's source of income protection is significant. Landlords in Iowa cannot refuse to rent to tenants solely because their income comes from a housing voucher (Section 8/HCV), alimony, disability payments, or other non-wage sources. This is often tested in landlord-tenant scenarios on the Iowa state exam.

Enforcement

Fair housing complaints in Iowa can be filed with:

• Iowa Civil Rights Commission (ICRC)
• HUD (federal)
• Federal district court

Remedies include injunctive relief, actual damages, civil penalties, and attorney fees.

Exam Focus

The Iowa exam typically tests:

• Which four classes Iowa adds beyond federal law (sexual orientation, gender identity, marital status, source of income)
• Whether a specific fact pattern constitutes steering, blockbusting, or redlining
• Which exemptions apply (and whether licensees qualify)
• Who administers Iowa fair housing enforcement (Iowa Civil Rights Commission)

Practice Iowa fair housing questions at [CARealestate.com/states/iowa](https://carealestate.com/states/iowa).