Fair Housing
A Des Moines property manager publishes rental ads exclusively in newspapers targeting one ethnic community. This may violate fair housing laws because:
AAll advertising must be in English
BSelective advertising that targets only one ethnic group discourages other protected classes from applying✓ Correct
CPrint advertising is not permitted for rental properties
DAll ads must include images of diverse households
Explanation
Selective advertising that targets only one demographic group can constitute discriminatory marketing, implying that members of other groups are not welcome. Fair housing requires advertising that reaches all potential applicants.
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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.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
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.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
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