What do federal fair housing rules prohibit?

Federal fair housing rules, established under the Fair Housing Act, prohibit discrimination in housing based on race, color, national origin, religion, sex, familial status, and disability. One of the specific practices that these rules explicitly target is blockbusting, which is the practice of inducing homeowners to sell their properties by suggesting that the demographic composition of the neighborhood is changing, often fueled by fear that their property values will decline. This manipulative tactic not only exploits racial tensions but also contributes to racial segregation and discrimination. By prohibiting blockbusting, federal fair housing rules aim to promote equal housing opportunities and to eliminate practices that perpetuate discrimination.

The other options, while related to ethical practices in real estate, do not fall under the specific prohibitions of federal fair housing law. For instance, discrimination based on income typically falls outside the purview of protected classes defined by fair housing laws, and marketplace competition and unethical pricing practices, while important considerations in real estate transactions, are not directly addressed by the Fair Housing Act.