Which situation would be exempt under the Fair Housing Act?

• A. The owner of a fourplex lives in one unit and refuses to rent the other three units to students because of their national origin
• B. The owner of a fourplex rents to all applicants equally
• C. A single-family rental to a family with children
• D. A landlord who rents to unrelated adults regardless of origin

Answer: (A)

The rule being tested is that the Fair Housing Act has private, owner-occupied exemptions for small properties. If a landlord lives in one unit of a building with up to four rental units and rents out the other units, the anti-discrimination provisions of the Act don’t apply to those rental decisions. In this setup, the owner can choose tenants for the remaining units based on personal preference, including national origin, without violating the FHA, as long as they’re not using a broker and aren’t advertising discriminatory intent. So a fourplex where the owner lives in one unit and refuses to rent the other three to students because of their national origin fits this exemption.