Fair HousingIntermediateAlabama Exam

Fair housing testing programs are designed to:

ATest the knowledge of real estate agents

BDetect discriminatory practices by using pairs of testers who differ only in protected class characteristicsCorrect

CVerify that properties are accurately described in listings, though outcomes can differ depending on circumstances

DTest the creditworthiness of rental applicants

Why Detect discriminatory practices by using pairs of testers who differ only in protected class characteristics Is Correct

Answer B: Detect discriminatory practices by using pairs of testers who differ only in protected class characteristics

Fair housing testing uses matched pairs — one tester with a protected class characteristic and one without — to identify whether housing providers treat applicants differently based on protected class.

Exam Tip: Fair Housing

Fair Housing questions test both federal (Fair Housing Act of 1968) and state-level protected classes. The federal protected classes are race, color, religion, national origin, sex, familial status, and disability. Many states add additional protections.

People Also Study

Key Terms to Know

Fair Housing Act

Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.

Steering

An illegal practice where a real estate agent directs buyers toward or away from certain neighborhoods based on the buyer's race, religion, national origin, or other protected characteristics.

Gross Rent Multiplier (GRM)

A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.

Comparable Sales (Comps)

Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.