Fair Housing
Which of the following is the BEST example of a legally permissible tenant screening criterion in Arizona?
AMinimum income of 3x the monthly rent applied to all applicants uniformly✓ Correct
BRequiring applicants with children to pay a larger security deposit
CRefusing applications from applicants with Arabic-sounding names
DCharging women higher rents than men
Explanation
A uniform income requirement (like 3x monthly rent) applied to all applicants without regard to protected class is a legally permissible, objective, and non-discriminatory screening criterion.
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Key Terms to Know
Debt-to-Income Ratio (DTI)
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Fair Housing ActFederal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.
SteeringAn 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.
State-Specific Concepts
DRE Regulation
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