Fair Housing
In Michigan, a landlord may legally deny an applicant's rental application based on:
AThe applicant's race
BThe applicant's religion
CThe applicant's documented poor credit history and prior evictions✓ Correct
DThe applicant's national origin
Explanation
Landlords may use facially neutral, consistently applied, non-discriminatory screening criteria such as credit history, rental history, and income requirements to evaluate applicants. Denial based on protected class characteristics (race, religion, national origin) is prohibited.
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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.
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.
RedliningAn illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.
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.
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