Housing Discrimination: What It Is And What To Do About It

There are laws in place to prevent housing discrimination, but the unfortunate truth is that it can still happen. Whether you’re buying, renting, or looking for any type of housing assistance, you are protected under the federal Fair Housing Act. Though it’s not something anyone wants to face, it’s still important to spot discrimination. It starts with understanding discrimination in housing and what you can do if you suspect it’s happening to you.

Housing Discrimination, Defined

Housing discrimination is when people are denied or discouraged from pursuing any aspect of housing because of certain characteristics, including race, sex, religion or disability. This unfair treatment is against the law. For example, a real estate agent may refuse to show you homes in certain neighborhoods, or landlords charging higher rent because you have a young child.

Laws Prohibiting Housing Discrimination

There are several laws that prohibit housing discrimination, including an executive order signed by President Biden.

The Fair Housing Act

The Fair Housing Act of protects people from discrimination in any aspect of housing due to any of the following identifying markers:

• Race
• Color
• National origin
• Religion
• Sex (including gender identity and sexual orientation)
• Familial status
• Disability

The act may also have additional protections to those who are seeking federally assisted housing. Plus, some states or local governments may have additional protections for specific categories, such as gender and sexual orientation.

Recent Regulatory Changes

In January 2021, President Biden signed executive order 13985, also known as “Advancing Racial Equity and Support for Underserved Communities Through the Federal Government.” The order requires government agencies to create Agency Equity Teams, provide them with resources and designate senior leaders to implement more equitable practices to prevent housing discrimination.

As part of these changes, the Department of Housing and Urban Development (HUD) has proposed a new rule, entitled "Affirmatively Furthering Fair Housing," to help hold public, state, and local housing agencies accountable when it comes to ensuring that there are equitable affordable housing opportunities for underserved communities.

Other parts of the order also focus on fighting “algorithmic discrimination in automated technology” and promoting data transparency to advance equity.

Housing Discrimination Examples

Housing discrimination can come in all shapes and sizes. To help you recognize the signs, below are a few examples of housing discrimination.

Rental Discrimination

Rental discrimination applies to people trying to rent a property or any type of housing assistance when trying to rent one. It’s also typically referred to as landlord discrimination. For instance, a landlord outright refuses to rent their home to a woman because of the fact that she wears a hijab. Or, it could be slightly more subtle, like a landlord asking a Black rental applicant for character references, but none of the other applicants of different races are required to provide them.

Mortgage Lending Discrimination

This type of discrimination occurs when a lender’s decision about your mortgage application is based on defining characteristics like race, sex or national origin. For instance, if you have a high credit score, low debt-to-income ratio, enough assets and other criteria that meet the requirements for a loan and you’re still denied, then there may be some form of lending discrimination.

That’s not to say the lender is obviously being discriminatory. However, if there appears to be no reasonable explanation as to why your application was denied, then it could be based on discriminatory factors.

Steering

Steering is a subtle form of discrimination, where an agency or a real estate professional tries to convince you to make a different decision. For example, a real estate agent suggesting that you may be better off looking at a different house without a reasonable explanation.

Harassment

Harassment is a less subtle form of discrimination, and renters and home buyers are protected under the law from these sorts of behaviors. For instance, if your landlord keeps making comments about your body every time they see you, this could be a form of sexual harassment.

Discrimination Against People With Disabilities

Laws forbid any type of discrimination against a person with disabilities, including the physical aspect of the property itself. For example, a landlord with a multi-unit apartment not meeting the parking space requirements (such as having accessible parking spots), or the doors aren’t wide enough for a wheelchair to go through.

What To Do If You Suspect Housing Discrimination

If during your home purchase or rental search you believe you’ve faced housing discrimination, here are a few steps you can take:

• Document the incident: Gathering documentation is one of the best and most tangible ways to build a case in order to present it to fair housing officials or agencies. Some evidence to gather includes documents that have discriminatory language and any notes you’ve taken on experiences of unexpected barriers to get housing
• Contact a fair housing organization: Speaking to someone trained to handle these cases can help you sort and organize your facts and prepare for any next steps. A representative of a fair housing organization can also act as your advocate and refer you to other professionals that can help, like an attorney.
• File a federal complaint: Filing a complaint with HUD’s Office of Fair Housing and Equal Opportunity may trigger an investigation that could lead to a lawsuit from the Department of Justice. If you believe you have enough evidence, you can file a complaint yourself, with your fair housing advocate, or through an attorney.
• Contact an attorney: Working with an attorney can help you pursue legal actions through state and local courts if the federal government doesn’t act.

Additional Resources For Fighting Housing Discrimination

To ensure you are doing all that you can to spot and fight housing discrimination, consider looking to the following reputable resources to help:

• HUD's Office of Fair Housing and Equal Opportunity: This office provides additional resources on housing discrimination, and you can file a complaint on the website.
• National Fair Housing Alliance: The NFHA is a group of nonprofit fair housing organizations dedicated to ending housing discrimination. They can offer help and advice no matter where you live.

FAQs About Housing Discrimination

For more assistance, here are some frequently asked questions about housing discrimination.

What is the ‘Mrs. Murphy’ exemption?

In some circumstances, this "law" exempts buildings up to four units that are owner-occupied, housing that is operated by private clubs or religious organizations, and single-family homes that are sold or rented by the owner (with no assistance from an agent). Mrs. Murphy is the name given to a hypothetical woman who has converted part of her home into a rental unit to supplement her income.

What are the fair housing laws in my state?

Federal fair housing laws apply to all states, though there may be additional or modified ones for your particular state. To find out if there are any in your state of residence, look to your local or state housing authority for more details.

What is the most common type of housing discrimination?

Some common types of housing discrimination include refusal to sell or rent a home related to disabilities, or certain people of national origin having to complete extra tasks for a housing or rental application.

How can you prove housing discrimination in court?

Since cases of discrimination are unique, the type of proof you will need will vary based on where and when it happened, plus the state you live in. It’s best to seek professional help, whether from your local fair housing authority or an experienced attorney, to determine how you can prove housing discrimination in court.

The Bottom Line

Sadly, even with laws protecting people from housing discrimination, it can and does still happen. If you or someone you know has faced or is facing discrimination while trying to rent or buy a home, it can feel like a dead end – but you shouldn’t give up. Start by documenting your experience and use the resources we’ve shared to file a complaint and fight the injustice. Just as importantly, keep your eye on the ultimate prize and use the Rocket Money℠ app to ensure you can afford your new life in the place you want to call home.