Housing Counselor Certification (HUD) Practice Exam

Which of the following is a potential indicator of housing discrimination?

1. Increasing rents in all neighborhoods

2. Differential treatment of applicants based on ethnicity

3. Landlords implementing stricter pet policies

4. Local zoning regulations

The correct answer is: Differential treatment of applicants based on ethnicity

The correct indicator of housing discrimination is the differential treatment of applicants based on ethnicity. This behavior directly violates the Fair Housing Act, which prohibits discrimination in housing-related activities. When applicants receive different treatment in the housing process—such as being denied housing or being offered different terms based on their ethnicity—this constitutes a clear case of discrimination. In assessing the other options, while increasing rents could affect all neighborhoods, it does not inherently imply discrimination if those increases apply uniformly. Stricter pet policies could be related to property management or liability concerns rather than discriminatory practices, as these are often based on protecting the property or meeting insurance requirements. Local zoning regulations typically focus on land use, development, and urban planning issues rather than individual applicant treatment, and they do not pertain to discrimination unless they specifically target certain groups, which is not implied in the option provided.