Most property managers know that discrimination in housing is illegal. But fewer realize how wide the net of the Federal Fair Housing Act truly stretches, and how easily a well-intentioned ad, tenant screening policy, or lease clause can cross the line. Passed in 1968 during the Civil Rights era, the Fair Housing Act (42 U.S.C. §§ 3601–3619) establishes the federal baseline of anti-discrimination protections in housing, and it continues to shape how landlords, property managers, and real estate professionals operate today.

Protected Classes Under the Fair Housing Act

The Act makes it unlawful to discriminate in housing based on the following protected characteristics:

• Race

• Color

• Religion

• Sex (expanded to include sexual orientation and gender identity under HUD guidance)

• National origin

• Familial status (families with children under 18 or pregnant individuals)

• Disability

These categories represent the federal baseline. State and local laws often expand the list, adding protections for age, source of income, marital status, or other factors.

How the Fair Housing Act Applies in Practice

The law’s reach extends across many aspects of housing, meaning compliance is not just about who gets approved for a unit. Key areas include:

1. Advertising

Language in rental ads must avoid any preference or limitation based on protected classes. Even subtle phrasing, such as “perfect for young professionals” or “ideal for singles,” can be flagged as discriminatory. The standard is whether the ad would discourage a reasonable person in a protected group from applying.

2. Tenant Screening

Property managers can set objective, uniform criteria—such as credit score minimums, rental history, or income requirements—but those criteria must be applied consistently to all applicants. Disparate treatment, such as stricter screening for families with children or for applicants with foreign-sounding last names, is prohibited.

3. Reasonable Accommodations and Modifications

For tenants with disabilities, housing providers must allow reasonable accommodations (such as permitting a service animal despite a no-pets policy) and reasonable modifications (such as grab bars in bathrooms). The tenant typically bears the cost of modifications, but the landlord must allow them unless they would fundamentally alter the property.

4. Enforcement and Penalties

The U.S. Department of Housing and Urban Development (HUD) investigates Fair Housing complaints. If HUD finds evidence of discrimination, cases may be referred to the Department of Justice. Penalties can include:

• Compensatory damages to victims

• Civil penalties up to $16,000 for a first violation and higher for repeat offenders

• Injunctions requiring policy or practice changes

• Attorney’s fees and court costs

The reputational damage from a Fair Housing violation often far exceeds the financial penalties.

Key Takeaways for Property Managers

The Fair Housing Act is not just about avoiding overt discrimination. It requires housing providers to think critically about policies, communications, and practices that could unintentionally exclude or burden protected groups. Compliance means:

• Reviewing rental ads with a fair housing lens

• Applying screening criteria uniformly

• Remaining flexible with accommodations for disabilities

• Staying updated on evolving interpretations and local laws that expand protections

By embedding fairness into everyday operations, property managers not only comply with the law but also strengthen trust with tenants and communities.