Fair Housing Act exemptions
For landlords
Real, narrow, and frequently misread by the landlords relying on them.
The two main exemptions
- Owner-occupied buildings with four units or fewer. The owner has to actually live in one of them, and it is a current fact rather than a historical one.
- Single-family houses rented by an owner who owns no more than three at a time, provided no real estate agent is used and no discriminatory advertising is published.
Both are narrower than they look. Using a letting agent generally forfeits the single-family exemption. Discriminatory advertising forfeits it regardless. And an owner who has moved out of the four-unit building no longer occupies it.
What the exemption does not cover
The advertising provision of the Act applies whether or not the property is otherwise exempt, so a no-animals advertisement can create exposure for a property that would otherwise be outside the statute entirely.
State law usually reaches further
This is the part that catches people. Most states have their own fair housing statute, and many contain narrower exemptions than the federal Act or none at all. A property exempt federally may be fully covered by state law, and after May 2026 state law is where most of the enforcement energy in this area now sits.
Before relying on it
Check the federal exemption carefully, check your state statute, and check any local ordinance, which in some cities is stricter than both. Then take advice. An exemption asserted incorrectly is worse than no exemption, because it usually comes with a refusal already sent.
Common questions
- I live in my duplex. Am I exempt?
- From the federal Act, probably, on those facts. From your state statute, quite possibly not, and that is the question that matters more now.
- Does the exemption cover advertising?
- No. The advertising provision applies regardless.