Avoiding Low-Income Discrimination and Steering in Housing: A Professional Guide

By Kathelene Williams

As affordable housing remains a challenge across the U.S., fair housing laws aimed at preventing discrimination against low-income applicants have gained attention. Though not federally protected, the source of income discrimination is being addressed at state and local levels, particularly as it relates to residents relying on government subsidies or housing vouchers.

Coupled with the issue of “steering,” these practices not only violate fair housing principles
but also perpetuate inequality, thereby affecting the vulnerable populations most in need of
housing opportunities.

Steering occurs when housing providers subtly direct potential residents to or away from specific housing options based on income, race, or other protected characteristics. Despite being illegal, this practice often results in economic or racial segregation.

With increasing scrutiny on such behaviors, housing providers must be vigilant in their application processes, ensuring that they don’t inadvertently participate in discriminatory actions that violate both ethical standards and legal obligations.

UNDERSTANDING THE LEGAL LANDSCAPE

Discrimination based on income source is becoming an area of heightened legal focus. While
the Fair Housing Act protects individuals from discrimination based on race, color, religion, sex,
disability, familial status, and national origin, it does not directly address the source of income.

However, an increasing number of states and local jurisdictions have taken proactive steps to address this gap by passing laws that prohibit housing discrimination based on income source, particularly in relation to housing vouchers or government assistance programs such as Section 8.

In these regions, it is illegal for property managers to refuse an application solely because a potential resident’s rent payment comes from a subsidy program. This means that landlords and housing providers must accept all legal forms of income as part of their applicant’s financial qualifications and may not exclude individuals simply because their income comes from non-traditional sources, such as government programs.

STEERING AND ITS DETRIMENTAL EFFECTS

While discrimination based on source of income is overtly unlawful in areas where it is protected, steering is a more covert form of housing discrimination that can be harder to identify and combat. Steering typically manifests as subtle suggestions or behaviors that guide individuals away from certain properties or neighborhoods based on perceptions of their financial status.

Housing providers may not directly say that a unit is unavailable to someone with a low income, but they may recommend different properties they perceive as “more appropriate” for that individual.

Steering is harmful because it reinforces housing segregation and limits choices for residents,
especially those from lower income backgrounds. Furthermore, it violates fair housing laws and can lead to significant legal and financial repercussions for housing providers who engage in this practice, whether consciously or unconsciously.

BEST PRACTICES FOR PROPERTY MANAGERS TO AVOID DISCRIMINATION AND STEERING

To avoid both overt and subtle forms of discrimination, property managers must adopt clear and unbiased practices in resident screening and communication.

Below are some essential best practices that housing providers can follow to ensure fairness in their processes:

✔️ Property managers should implement standardized, objective resident screening
processes that are applied uniformly to all applicants.

✔️ They should ensure clear communication of financial requirements like income
to-rent ratios without excluding legal income sources, such as housing vouchers.

✔️ They must also stay informed of local laws regarding sources of income
discrimination and adjust policies to remain compliant.

✔️ Regular training is essential to avoid steering and ensure fair treatment for all applicants.

Additionally, internal audits help monitor compliance and a commitment to diversity fosters inclusive housing environments for individuals from all financial backgrounds.

CONCLUSION

As the legal landscape continues to evolve, housing providers must remain diligent in their
efforts to avoid both income-based discrimination and steering. Property managers who operate with transparency, fairness, and respect for the law are not only protecting themselves from legal risk but are also contributing to the creation of equitable housing opportunities for all.

By understanding and complying with local regulations, offering training on steering practices, and implementing fair screening processes, housing professionals can ensure they are fostering an inclusive and fair housing environment.

In this way, the entire housing industry can contribute to a more just and equitable system, where residents are judged on their ability to pay rent—regardless of the source of that income—and have equal access to housing opportunities across all neighborhoods and price ranges.

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