Practice, Regulations & Math

The federal Fair Housing Act prohibits discrimination based on race, color, religion, national origin, sex, familial status, and disability (handicap).

The Civil Rights Act of 1866 prohibits all racial discrimination in property transactions with no exceptions, as upheld in Jones v. Mayer. It predates and overlaps the Fair Housing Act.

Steering is the illegal practice of directing prospective buyers or renters toward or away from certain neighborhoods based on a protected class, limiting their housing choices.

Blockbusting (panic selling) is inducing owners to sell or rent by suggesting that people of a protected class are moving into the area, often to profit from quick turnover. It is illegal.

Redlining is the illegal denial or differential pricing of loans or insurance in certain geographic areas based on the racial or ethnic composition of the neighborhood rather than creditworthiness.

Limited Fair Housing Act exemptions exist (e.g., owner-occupied buildings of four or fewer units, single-family sale by owner without a broker), but none allow racial discrimination or discriminatory advertising.