Fair Housing
A Washington property manager uses income-to-rent ratio requirements as part of tenant screening. To comply with fair housing law, this requirement must be:
ASet at exactly 3x monthly rent for all applicants
BApplied consistently and not used to screen out protected classes✓ Correct
CWaived for applicants receiving government assistance
DHigher for applicants with children than for single applicants
Explanation
Income verification requirements are legitimate screening criteria, but they must be applied consistently to all applicants and cannot be used as a pretext for discrimination. Setting requirements higher for some applicants based on protected characteristics is discriminatory.
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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.
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.
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.
State-Specific Concepts
DRE Regulation
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