What Is the Fair Housing Act in Real Estate?

The Fair Housing Act (FHA) is a federal law that prohibits discrimination in the sale, rental, and financing of housing. Enacted in 1968, it ensures that every individual has equal access to housing opportunities—regardless of race, color, religion, sex, national origin, disability, or family status.

🏛️ Purpose of the Fair Housing Act

The Fair Housing Act was passed as part of the Civil Rights Act of 1968 to eliminate housing discrimination and promote integrated communities across the United States. It applies to nearly all forms of real estate transactions, including sales, rentals, advertising, and mortgage lending.

The law is enforced by the U.S. Department of Housing and Urban Development (HUD), which investigates complaints and can impose penalties for violations.

🔍 Protected Classes Under the Fair Housing Act

The law makes it illegal to deny housing or treat someone differently based on any of the following:

  • Race
  • Color
  • Religion
  • Sex (including gender identity and sexual orientation)
  • National origin
  • Disability
  • Familial status (having children or being pregnant)

It also applies to how listings are advertised. Phrases that suggest preference or limitation—such as “no kids,” “ideal for singles,” or “Christian home”—can violate the Act.

🏡 What FSBO Sellers Need to Know

Even if you’re selling your home For Sale By Owner (FSBO), you’re still required to follow the Fair Housing Act when marketing and showing your property. The law applies to online listings, photographs, and communication with potential buyers or tenants.

FSBO sellers should avoid wording or imagery that could be interpreted as discriminatory. Every listing on the MLS or through a Flat Fee MLS service must comply with fair housing laws and MLS advertising guidelines.

Violations can result in formal complaints filed with HUD and potential civil penalties. To learn more about how settlement laws protect consumers, see What Is RESPA in Real Estate.

The Fair Housing Act is one of the cornerstones of real estate law in the U.S. It ensures equal access, transparency, and fairness for everyone involved in buying or selling a home.