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What Is Fair Housing? Rights, Responsibilities, and Resources

Dusty Rhodes • October 23, 2023

If you’ve ever submitted an offer on a home or applied for a mortgage and felt you were treated unfairly, you aren’t alone. Housing discrimination has existed for decades and continues to be a major issue, although it often appears in subtle forms. Fair housing laws helped address many blatantly discriminatory practices, but you may be wondering what rights you have under fair housing laws and who enforces them.


The Fair Housing Act (FHA) provides rights, responsibilities, and resources for everyone at every stage of the housing process, including buyers, renters, real estate agents, lenders, and brokerages. Fair housing is critical to creating an equitable society free from discrimination.


Whether you’re a homebuyer, renter, or just want to learn more, this article is for you. Read on to learn what you need to know about fair housing, including what it is, the rights it provides, the responsibilities it enforces, and what to do if you’ve been discriminated against. 


What is fair housing?


Fair housing laws prohibit discrimination in the purchase, sale, rental, and financing of housing due to a person’s race, color, religion, sex, national origin, familial status, and disability. The Fair Housing Act protects everyone, including US citizens, green card holders, and undocumented residents.


The right to fair housing was established by the Fair Housing Act (Title VIII of the Civil Rights Act) in 1968 and has since been through dozens of amendments and executive orders expanding its reach. States, counties, and cities also often have specific housing laws that provide additional protections beyond those offered by the Fair Housing Act, such as prohibiting discrimination based on characteristics such as age, gender identity, honorably discharged veteran or military status, or source of income (including the receipt of income from affordable housing programs). 


Exceptions to the Fair Housing Act


The Fair Housing Act applies to most housing, but there are a few exceptions where the law doesn’t apply:


  • A dwelling with four or fewer units, if the owner lives in one of the units 
  • Single-family housing sold or rented without a broker, if the private owner doesn’t own more than three single-family homes at once 
  • Religious organizations and private clubs, as long as they don’t discriminate in membership
  • Specific HUD-approved housing for older persons 


Be cautious when applying for or purchasing housing that is exempt from the Fair Housing Act, and take your state and local laws into account as well, as they may offer additional protections beyond the federal law. 


Fair lending and mortgage discrimination


Fair housing also applies to mortgage lending. The Equal Credit Opportunity Act (part of the FHA) prohibits lenders from discriminating against borrowers based on a legally protected characteristic at any stage of the mortgage process, including but not limited to: 


  • Refusing to make a mortgage loan or provide other financial assistance for a dwelling
  • Refusing to provide information regarding loans
  • Imposing different terms or conditions on a loan, such as different interest rates, points, or fees
  • Discriminating in appraising a dwelling
  • Conditioning the availability of a loan on a person’s response to harassment
  • Refusing to purchase a loan


An example of mortgage discrimination is redlining, which is the process of denying mortgages, insurance, and other services to residents in specific areas. 


Fair housing rights and responsibilities


The Fair Housing Act provides protections for homebuyers and renters and responsibilities for home sellers, renters, and mortgage lenders. Let’s take a closer look.


Rights of the homebuyer


As a homebuyer, you’re protected from discrimination based on any legally protected characteristic in any part of the homebuying process. This includes financing, finding a real estate agent, touring homes, submitting offers, negotiating, and more.


Rights of the renter


The Fair Housing Act protects both buyers and renters. Here are a few important tenant rights (this is not an exhaustive list):


  • Right to a fair security deposit refund
  • Right to a notice of eviction and a timeframe in which to fix the situation
  • Right to a habitable home
  • Right to privacy
  • Right to quiet enjoyment


Homebuyers and renters can file discrimination complaints with HUD or file lawsuits in state or federal court. Retaliation against someone who filed a complaint is prohibited by law. 


Responsibilities of the home seller and landlord


Home sellers and landlords have to fairly entertain offers from everyone who might want to buy or rent your home. A seller and landlord cannot take any of the following actions because of a person’s race, religion, or other legally protected characteristics (this is not an exhaustive list):


  • Refuse to rent or sell housing 
  • Refuse to negotiate for housing
  • Make housing unavailable
  • Otherwise deny someone a home
  • Set different terms, conditions, or privileges for the sale or rental of a home 
  • Provide different housing services or facilities
  • Falsely deny that housing is available for inspection, sale, or rental 
  • Blockbusting, i.e., for profit, persuading or trying to convince homeowners to sell their homes by suggesting that people of a particular race or other protected characteristic have moved or are about to move into the neighborhood 
  • Deny someone access to, membership, or participation in any organization, facility, or service related to home sales and rentals (such as a multiple listing service), or discriminate against any person in the terms or conditions of access, membership, or participation 


Responsibilities of the lender


Fair lending guarantees the same lending opportunities to everyone, though lenders can legally make distinctions based on non-protected characteristics, such as credit scores. Lenders cannot discriminate against anybody based on race, national origin, or other legally protected characteristics. Some examples of discriminatory practices include (this is not an exhaustive list):


  • Unnecessary closing costs
  • Inflated broker or lender fees
  • Unnecessary recording fees
  • Excessive prepayment penalties
  • Refusing to consider a mortgage applicant’s disability-related income, such as SSI or SSDI
  • Refusing to provide mortgages to a person on parental leave
  • Changing mortgage loan terms at closing without the borrower’s consent


If you’re dealing with a mortgage broker or lender, take notes during and after the process. Also, ensure you receive these items at no cost: 


  • Good Faith Estimate 
  • Truth in Lending Disclosure Statement
  • Copy of your loan application
  • Mortgage Servicing Disclosure Statement 


Receiving a home loan can be a significant barrier to entry to homeownership and has historically been a discriminatory process. If you believe you have experienced lending discrimination, visit HUD’s housing discrimination complaint website to file a complaint. 


Responsibilities of the appraiser


A home appraiser determines the value of a home so it can serve as collateral for a loan. Home appraisals are an essential part of the homebuying process.


Appraisers must fairly value every home they appraise and cannot charge excessive appraisal costs. Lowballing – making an excessively low appraisal based on the homeowners’ race or other protected characteristics – is prohibited. 


Responsibilities of the real estate agent


Real estate agents are bound by all fair housing laws and regulations. Many agents are also members of the National Association of REALTORS®, which provides an additional code of ethics. 


Redfin employs real estate agents and brokers, most of whom are REALTORS®. In addition to any FHA training all agents and brokers must complete as part of their licensing requirements, and the Code of Ethics REALTORS® must abide by, Redfin requires agents and brokers to complete an additional comprehensive FHA training. This training explains the FHA and the risks of non-compliance, Redfin’s Fair Housing Policy, and restates our commitment to honoring every customer. 



Examples of housing discrimination


While landlords and banks don’t often display ads saying “Whites only” or enforce restrictive covenants, discrimination persists in more subtle ways. Housing discrimination still disproportionately affects people of color and other minoritized groups. For example, studies indicate that same-sex couples and transgender persons often experience less favorable treatment than their straight and cisgender counterparts. 


Lending practices are another example. Outright discrimination is illegal, but racialized perceptions of value contributed to the devaluation of property and housing stock in neighborhoods of color.


All forms of housing discrimination are illegal and punishable by federal law, but subtle methods can be harder to prove.

 

Types of housing discrimination


Some common types of housing discrimination have names. While this list is not exhaustive, here are three common examples:


  • Redlining: Redlining was a racist tactic used by banks, lenders, and other businesses to deny mortgages, insurance, and healthcare to people living in certain areas that were deemed to be “hazardous.” This was once legal and supported by the federal Homeowners Loan Corporation (HOLC) but was outlawed by the Fair Housing Act. However, historically redlined communities are often still lower income and inhabited by minoritized groups. Redlining has also become shorthand for many types of historic race-based exclusionary tactics.
  • Steering: Steering in real estate is the illegal practice of guiding prospective homebuyers towards or away from certain areas based on a legally protected characteristic, such as race or gender. This can create homogeneous neighborhoods that often negatively impact immigrants, people of color, and LGBTQ+ folks while benefiting white, cisgendered homebuyers. Steering continues to be a form of discrimination.   
  • Lowballing: Lowballing is when a home appraiser makes an excessively low appraisal on the basis of race, religion, or other protected characteristics.


Who enforces fair housing?


The Department of Justice (DOJ) and HUD play a role in enforcing the FHA. HUD and its Fair Housing and Equal Opportunity (FHEO) office handle most enforcement and administration responsibilities. In contrast, the DOJ handles violations of the Fair Housing Act, which are punishable by law. Depending on the severity and frequency of the violations, the DOJ can institute criminal charges or take further legal action.


There are ten HUD regions in the US, each with an FHEO office. These offices manage fair housing complaints and administration in their specific region. Individual states, counties, and cities often have their own housing laws and enforcement agencies where people can file complaints and seek help. Nonprofit organizations can help as well and connect people with resources. 


What about fair lending?


In 2021, HUD and the Federal Housing Finance Administration (FHFA) agreed to work together to enforce the Fair Housing Act and to restate their commitment to fighting discrimination in the homebuying process. This is important because FHFA regulates Fannie Mae and Freddie Mac, the two major government-sponsored mortgage lenders. By partnering with HUD, the FHFA can help ensure Fannie Mae, Freddie Mac, and other mortgage lenders practice fair lending. 


Fair housing vs. equal housing opportunity


Fair housing, equal housing opportunity, and equal opportunity housing are different terms that all refer to the Fair Housing Act. The difference is in how they’re used. Fair housing generally refers to rules and regulations, while equal housing opportunity refers to real estate businesses that follow the rules. 


Equal housing opportunity is a common phrase used throughout the real estate industry. It indicates that a business advertises they abide by the Fair Housing Act.


How to identify companies that support fair housing 


Fair housing is the law; all brokerages, lenders, agents, landlords, or other housing providers must follow it. However, many people want to look for brokers or lenders that affirmatively show their commitment to fair housing. To find them, look for the Equal Housing Opportunity logo, statement, or slogan. 


Additionally, all advertising of residential real estate for sale and rent, and financing opportunities, must abide by fair housing laws. It’s illegal to make, print, or publish any notice, statement, or advertisement that indicates a preference, limitation, or discrimination because of race, color, or other legally protected characteristics. 


What to do if you experience housing discrimination


If you experience housing discrimination, your first step should be to file a complaint with HUD, your regional FHEO office, or your local housing authority. In cases where you may be evicted or otherwise lose your housing, HUD can assist you as soon as you file and expedite the judicial process. Retaliation against a complainant is illegal, so fight for your rights. 


If you don’t feel comfortable filing a complaint or want to assess your legal rights, consider consulting an attorney. You can also call a government hotline, such as your city or state’s Human Rights Commission. This can get you more immediate help.


Generally, taking notes during any housing, renting, lending consultations, and other real estate-related services is a good idea. A first-hand account can be helpful if you experience discrimination and wish to file a complaint. 



Final thoughts on fair housing: equal housing is a right


Fair housing is a fundamental right that ensures equal access to housing and equal homeownership opportunities. The Fair Housing Act and its additions, including the Equal Opportunity Credit Act and the Americans with Disabilities Act, provide legal protections and procedures that are enforceable by law. There are protections for more specific cases as well that this article didn’t cover. 


The Fair Housing Act is over 50 years old and continues to help people in need. However, while the industry has changed, it is not free from discriminatory practices. Expanding legislation and providing additional resources will help everyone receive the right to housing without discrimination. It will take work, but it is necessary. 



Source: Redfin

Dusty Rhodes Properties is the Best Realtor in Myrtle Beach! We do everything in our power to help you find the home of your dreams. With experience, expertise, and passion, we are the perfect partner for you in Myrtle Beach, South Carolina. We love what we do and it shows. With more than 22 years of experience in the field, we know our industry like the back of our hands. There’s no challenge too big or too small, and we dedicate our utmost energy to every project we take on. We search thousands of the active and new listings from Aynor, Carolina Forest, Conway, Garden City Beach, Longs, Loris, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Pawleys Island, and Surfside Beach real estate listings to find the hottest deals just for you!

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The Secret To Selling This Spring: Start the Prep Work Now

By Dusty Rhodes • February 17, 2025
Spring is the busiest season in the housing market. It’s the time of year when buyers are most active – that means it’s when homes sell faster and for top dollar. If you’ve already got a move on your mind, why not list this spring and take advantage of the added buyer demand ? Since spring is just around the corner, now’s the time to start getting your house market-ready. You’ve got just over a month to do the prep work. And while that may sound like a decent amount of time, it’s going to go by quickly. And you won’t want to rush through this important task – especially this year. The Right Repairs Will Matter More This Spring Right now, two things are true. There are more homes on the market than there have been in years. And buyers are being extra selective. That combination means you need to invest some time and effort in making strategic repairs . And many homeowners already have a jump on this work. In the 2025 Outlook for Home Remodeling , Carlos Martin, Director of the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University , explains : “. . . homeowners are slowly but surely expanding the pace and scope of projects compared to the last couple years.” And the most common projects they’re tackling are replacing water heaters, HVAC units, and flooring. Energy efficiency is a key consideration too, based on home improvement data from the Census. What To Prioritize as You Plan Ahead But just because that’s what other homeowners are doing, it doesn’t mean that’s what you have to tackle. Think about what you’d want to see if you were a buyer. Focus on quick wins that are easy to knock out with the time you have – but, don’t ignore key repairs, especially ones you think could turn off buyers. While big-ticket items like replacing an old roof or outdated flooring may seem daunting, they can pay off – especially if you focus on projects with the best return on investment (ROI). An agent’s expertise is key in narrowing down your list to what’s actually worth it. They know what buyers in your area want and they also have data like this report from Zonda to guide you on which updates have the best ROI ( see green in the graph below ):

41 housing markets where inventory just tipped in favor of buyers

By Dusty Rhodes • February 10, 2025
Among the nation’s 200 largest housing markets, these 41 metro areas now have active inventory at or above 2019 pre-pandemic levels. While homebuyers and home sellers still see headlines about the housing market being a seller’s market and national home prices reaching all-time highs, a deeper look reveals that several regional housing markets have shifted, giving homebuyers some power. During the pandemic housing boom, from summer 2020 to spring 2022, the number of active homes for sale in most housing markets plummeted as homebuyer demand quickly absorbed almost everything that came up for sale. Fast-forward to the current housing market, and the places where active inventory has rebounded to 2019 levels (due to strained affordability suppressing buyer demand) are now the very places where homebuyers hold the most power. At the end of January 2025, national active inventory for sale was still 25% below January 2019 levels. However, more and more regional markets are surpassing that threshold. Among the nation’s 200 largest metro area housing markets, 41 markets ended January 2025 with more active homes for sale than they had in pre-pandemic January 2019. These are the places where homebuyers will be able to find the most leverage or market balance in 2025.

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By Dusty Rhodes • February 3, 2025
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In some locations, rental prices can easily cover your mortgage payments. Depending on how much you have left on your mortgage or if you have a low mortgage rate, the rental income from your old house may cover the monthly payments, plus homeowners insurance and property taxes you pay. However, if you’ve recently purchased your house and are looking to rent it out, your mortgage payments may be too high for a lease to cover them. Take a look at houses that compare to yours with regard to size and location. This should give you a ballpark figure on what price your house can lease for. If you aren’t on a tight timeline to leave your current home, take notice of how quickly similar houses in the area take to lease. If rental properties stay empty for more than a few weeks, you may have trouble finding consistent tenants. A real estate agent can help match you with a tenant or give you an idea of your rental prospects. They can also give you insight into whether your location is desirable for tenants. For instance, if it’s near a university or larger employer, you may be able to rent to students or to employees who relocate for that large employer. However, if the house is far from the city center, or you’re located in a residential neighborhood, you may have trouble finding tenants. Do you need equity from your current home? Why are you leaving your old house? Are you purchasing a new home? If you’re planning to upgrade to a larger home, you may need the money from the sale of your old one to place a down payment on your new house. If you have enough equity in your current home, it may make more sense to sell the house instead of renting it. If you’re able to afford the down payment on your new home without selling your current one, usually about 20%, then renting out your old one makes sense. What is the market like in your area? The housing market isn’t consistent across the country, and even different parts of larger metro areas may be more or less robust. If the current market is slow and you think you can sell your home for a higher price in a few years, then it may make sense to rent the house until housing prices rise again. However, if it’s a sellers’ market and you can get the maximum selling price for your home, then selling it may be the better option. Keep in mind that houses that have been rental properties, often have a harder time selling afterward. You may have more wear and tear in the home if multiple tenants have lived there, which may mean spending more to prepare it to show and sell. An experienced real estate agent in your area can help you determine the top vales of your home and whether or not the current market can support that selling price. Agents who have been in the area long enough to become familiar with the housing market are in a good position to help you determine the best time to sell. Will you live in the house again? Consider whether you plan to live in the house or the area again. You may be in a situation that requires temporary relocation, and you plan to return to the original home in a few years. Having a good tenant to live in the house can ensure that your home stays in good condition instead of sitting empty. You’ll also have income from the rental property and building equity in the old home and your new one. Do you have the time and money to be a landlord? For those who are new to investing in rental properties, it may seem easy to rent out their current home and enjoy passive income while paying down their mortgage. However, if this is your first time being a landlord, you may find leasing your property yourself challenging. First, landlords are responsible for making major repairs to the house. Landlords have to fix things like broken pipes, defunct HVAC systems, and structural damage, among other essential repairs. If you don’t have a few thousand dollars on hand to take care of these repairs, you could end up in a bind. There are specific laws in place to protect tenants, including the landlord’s reliability to make major repairs on the house. In addition, there are certain things that you can and can’t do as a landlord. Being aware of Fair Housing Laws is critical to make sure that you don’t inadvertently violate them. Do you need a property manager? A property management company can help vet tenants, collect rents, and arrange for repairs and maintenance on your behalf. A good property management company is also up-to-date on current requirements in your state for landlord obligations. If you’re planning to just lease your house, you may choose to manage the repairs and tenant search yourself, especially if you live nearby. However, if you’re planning to build a portfolio of rental properties, then having one company manage them may be a better option. Property managers can help ensure that your house or houses stay full, including working with local agents, having open houses for prospective tenants, and quickly running background and credit checks for those applying for a lease. As a passive landlord in this situation, you’re able to free yourself of the obligation for emergency repairs and the time searching for people to live in your rental property. Consider rent-to-own Another option when you’re considering whether to sell or rent your house is to engage in a rent-to-own agreement. In these situations, the tenant will place a down payment on the house and make lease payments to you for a specified period. After the lease is up, then the tenant has the option to purchase the home. During the time they’re making lease payments, a portion of those payments will go toward the final price of the house. This option may work for you if the housing market in your area is stagnant, allowing you to cover the mortgage without entering into a long-term obligation to a rental property. These rent-to-own options can be beneficial for tenants, too, as their financial situation may improve enough over time that they’re able to obtain a mortgage. What makes a house a good rental property investment? Does your house have the potential to be a good income property? There are a few things to consider before listing your house for rent. You may have to make some minor repairs and upgrades to your property to attract good tenants who will take care of the house and pay on time. Fresh paint and carpet are usually a must and are required in some areas. The location of your investment property is one of the most important things in determining whether you’ll have steady tenants or be responsible for covering the mortgage out of pocket if the house sits empty. The home’s location can easily make the difference between having a steady tenancy and losing money on the rental property. Final thoughts on renting or selling your home Deciding whether to sell your house or rent depends on carefully analyzing the area and the property’s desirability. Will the area be in high demand for renters, or is it likely that you’ll struggle to find tenants? You’ll also need to take a look at your finances and determine if selling or renting will give you the best return on your investment. Choosing the right real estate agent to advise you in this process can help you answer your question of whether to sell or rent your house.
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