Guides › Updated 2026-10-31
Fair Housing Act Exam Questions: Protected Classes, Exemptions, Steering
TL;DR: The federal Fair Housing Act (42 U.S.C. § 3601 et seq.) bans housing discrimination based on seven classes: race, color, religion, sex, national origin, familial status and disability. Exemptions in § 3603(b) and § 3607 are narrow, and none of them allow discriminatory advertising or protect a transaction that goes through an agent. Know blockbusting (§ 3604(e)), steering, and redlining by definition.
This article summarizes federal law for exam preparation. It is not legal advice, and state or local laws may add protections.
The seven protected classes
Per HUD’s overview, the Act prohibits discrimination in housing because of race, color, national origin, religion, sex, familial status and disability. The statute itself says “handicap” instead of “disability.” The Department of Justice notes the Act was enacted in 1968. The 1988 amendments (Pub. L. 100-430) added familial status and handicap to the covered grounds in § 3604.
| Class | Exam notes |
|---|---|
| Race, color | Core protected grounds; named in § 3604(a)-(e) |
| Religion | Subject to a limited religious-organization exemption (§ 3607(a)) |
| Sex | Named in § 3604(a)-(c) and (e) and in § 3605 |
| National origin | Named throughout §§ 3604 and 3605 |
| Familial status | Households with a child under 18 living with a parent or legal custodian, plus pregnant people and those securing custody (§ 3602(k)) |
| Disability (handicap) | A physical or mental impairment that substantially limits a major life activity, plus a record of or being regarded as having one (§ 3602(h)) |
State and local laws frequently add classes such as source of income or others. Check your state’s handbook for the list your exam covers.
What the Act prohibits
Section 3604 makes it unlawful, because of a protected class, to:
- (a) refuse to sell or rent after a bona fide offer, refuse to negotiate, or otherwise make a dwelling unavailable;
- (b) discriminate in the terms, conditions or privileges of a sale or rental, or in related services;
- (c) make, print or publish any notice, statement or advertisement showing a preference, limitation or discrimination;
- (d) falsely say a dwelling is unavailable for inspection, sale or rental when it is available;
- (e) engage in blockbusting;
- (f) discriminate because of handicap, including refusing reasonable modifications or reasonable accommodations.
Section 3605 separately covers discrimination in residential real estate-related transactions, which includes making or purchasing loans and selling, brokering or appraising residential property.
Exemptions: narrow and conditional
§ 3603(b)(1): single-family house sold or rented by owner
Section 3604 (other than the advertising rule in subsection (c)) does not apply to a single-family house sold or rented by a private owner only if:
- the owner does not own more than three such houses at any one time;
- if the owner was not the most recent resident, there is no more than one sale in any 24-month period;
- the owner does not use a broker, agent or salesperson’s services; and
- there is no discriminatory advertisement or notice.
§ 3603(b)(2): owner-occupied building with four or fewer units
Rooms or units in a dwelling for no more than four families are exempt if the owner actually maintains and occupies one of the units as a residence. This is the “Mrs. Murphy” exemption (a nickname, not statutory text).
Exam shortcut: a licensee involved in the transaction should assume the Act applies. And § 3604(c) advertising rules apply to everyone, exempt or not.
§ 3607: other exemptions
- Religious organizations (and nonprofits they control) may limit sale, rental or occupancy of non-commercial dwellings to members of the same religion or give preference, unless membership is restricted by race, color or national origin.
- Private clubs not open to the public may limit non-commercial lodgings incidental to their purpose to members.
- Occupancy limits: reasonable local, state or federal restrictions on the maximum number of occupants are allowed.
- Housing for older persons (an exception to familial-status protection): housing for those 62 or older, or 55 or older where at least 80% of occupied units have at least one resident 55 or older and the housing publishes and follows policies showing that intent, with age verification.
- Drug convictions: the Act does not prohibit action based on a conviction for illegally manufacturing or distributing a controlled substance.
Blockbusting, steering and redlining
| Term | Meaning | Where it fits |
|---|---|---|
| Blockbusting | For profit, inducing sales or rentals by claiming people of a protected class are entering the neighborhood | § 3604(e) |
| Steering | Directing buyers or renters toward or away from areas or properties because of a protected characteristic | Generally analyzed under the refusal and terms-and-conditions rules of § 3604(a)-(b); DOJ describes it as a way discrimination is disguised |
| Redlining | Common exam definition: refusing or limiting loans or services in an area because of who lives there | A lending-related practice; § 3605 covers discrimination in residential real estate-related transactions such as loans and appraisals |
Exam labels like these are shorthand; the statute’s operative text is §§ 3604 and 3605.
Advertising pitfalls
Avoid language that states a preference, such as limits on children or particular groups. Describe the property, not the preferred occupant. Section 3604(c) covers notices, statements and ads.
Quick quiz-style traps
- “Exempt owner uses a broker.” The single-family exemption is lost.
- “Seller can’t discriminate, but may the ad say ‘no children’?” No, § 3604(c) applies.
- “Which is NOT a federally protected class?” Read all options; marital status and source of income are not among the seven federal classes (though states may add them).
- Familial status includes pregnancy.
Complaint timing
Under § 3610(a)(1)(A)(i), an aggrieved person may file a complaint with HUD no later than one year after an alleged discriminatory practice occurred or terminated.
Practice
Fair housing is a standard exam topic, so check your state’s content outline. Take the free quiz for your state, such as Texas, Florida, California or New York, and use the GablePrep app for scenario practice.
GablePrep is an independent study resource. We are not affiliated with any state real estate commission or testing provider, we are not a pre-licensing course, and this is not legal advice. Confirm your state’s fair housing content in its official handbook.
Frequently asked questions
What are the seven federally protected classes?
Race, color, religion, sex, national origin, familial status and disability (called handicap in the statute). HUD lists the same seven. Many states and cities add more protected classes, so check your state's rules.
Do the Fair Housing Act exemptions let a real estate agent discriminate?
No. The single-family and owner-occupied exemptions in section 3603(b) are for qualifying private owners, and the single-family exemption is lost if a broker or agent is used or if a discriminatory advertisement is published. The advertising rule in section 3604(c) applies even to otherwise exempt owners.
What is blockbusting?
Blockbusting is, for profit, inducing or attempting to induce someone to sell or rent a dwelling by making representations about the entry or prospective entry into the neighborhood of people of a protected class. It is prohibited by section 3604(e).
Where is steering in the statute?
The word steering does not appear in section 3604 as published by Cornell LII. Steering, directing buyers toward or away from areas based on a protected characteristic, is treated as a form of discrimination under the Act's prohibitions, and the Department of Justice describes it that way.
Sources
- 42 U.S.C. 3604 - Discrimination in sale or rental of housing (Cornell LII)
- 42 U.S.C. 3603 - Effective dates of certain prohibitions (Cornell LII)
- 42 U.S.C. 3607 - Religious organization or private club exemption (Cornell LII)
- 42 U.S.C. 3605 - Discrimination in residential real estate-related transactions (Cornell LII)
- 42 U.S.C. 3602 - Definitions (Cornell LII)
- U.S. Department of Justice - The Fair Housing Act
- HUD - Fair Housing Act overview
Independent exam prep. Not affiliated with any state real estate commission or testing provider. Not an approved pre-licensing course. Not legal advice. Facts verified on 2026-10-31; always confirm with your state’s official handbook.