The Mrs. Murphy exemption in fair housing law applies to:

• A. All rental properties regardless of size
• B. Owner-occupied buildings with more than four units
• C. Dwelling units in buildings with four units or fewer that are owner-occupied
• D. Commercial properties not used for housing

Answer: (C)

The idea being tested is that there are special exemptions in fair housing for small, owner-occupied rental properties. The Mrs. Murphy exemption applies to dwelling units in buildings with four units or fewer where the owner lives on-site in one of the units. Because the owner resides in the property and the building is small, those rental units can be exempt from the FHA’s standard anti-discrimination rules. If the building has more than four units, or the owner does not live in the premises, this exemption doesn’t apply. It also applies only to housing, not to commercial properties.