Fair Housing
Under the Fair Housing Act, which of the following is a permitted distinction in housing?
ARefusing to rent to people of a certain religion
BScreening applicants based on verifiable income and credit history applied consistently✓ Correct
CRefusing to rent to single mothers
DCharging higher rent to foreign nationals
Explanation
Landlords may screen applicants using neutral, objective criteria (credit scores, income requirements, rental history) applied consistently to all applicants. These criteria are not based on protected class characteristics and are permissible under fair housing law.
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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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
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