State fair housing laws primarily cover residential properties, not commercial real estate.

Fair housing laws get tossed around a lot in real estate conversations, but there’s a simple truth that clears up a lot of confusion: these laws mainly target housing. They’re about who can rent, buy, or financing a home—or a home-related service—not about every inch of commercial real estate. So, are state fair housing laws applicable to both residential and commercial properties? The short answer is: not typically. They’re primarily focused on residential housing.

Let me explain how it works, and why the distinction matters in the real world.

What “fair housing” usually covers

Think of fair housing laws as a set of guardrails designed to keep people from facing bias when they’re looking for a place to live. At the federal level, the Fair Housing Act prohibits discrimination in the sale or rental of dwellings, and in the financing of housing. It protects seven groups we all recognize: race, color, national origin, religion, sex, familial status (that means having children), and disability. State and local laws often build on that foundation, sometimes adding protections like sexual orientation, gender identity, or veteran status. In practice, the focus is clear: housing opportunities, not commercial leases.

With that lens, the core activities covered tend to include:

• Advertising a dwelling for sale or rent

• Screening applicants for a lease or mortgage

• Terms of sale or rental (price, terms, and conditions)

• The services connected to obtaining housing (like loan origination or property management)

• Reasonable accommodations and accessible design for people with disabilities

The enforcement side usually involves federal agencies (like the U.S. Department of Housing and Urban Development) and state or local civil rights offices. Penalties can be significant, and there’s a built-in expectation that landlords, property managers, lenders, and real estate professionals operate with equal opportunity in mind.

Residential rules dominate, but what about commercial spaces?

This is where the lines get a little murkier—and that’s okay. The standard framework of fair housing law isn’t built to govern every commercial lease or sale. If you’re hunting for a storefront, warehouse, or office building, you’re typically dealing with commercial real estate laws and market dynamics more than housing-specific protections.

Here’s the gist:

• In most cases, state fair housing laws apply to residential housing activities—rent, sale, financing for housing, and housing-related services.

• Commercial properties are generally outside the core scope of these laws. The discriminatory practices you’d see in a housing context—refusing to rent to someone because of their protected characteristic, for instance—don’t automatically map onto commercial leasing unless a specific state or local rule explicitly says so.

• Some state laws broaden protections in ways that touch commercial transactions, but that isn’t the standard approach. It’s more common to see broader civil rights or non-discrimination statutes addressing business practices, sometimes overlapping with housing as part of a mixed-use development or a housing-adjacent project. These cases are the exception, not the rule.

To put it another way: if you’re evaluating a rental dwelling or a home purchase, you’re squarely in the fair housing arena. If you’re looking at a retail space or an office, you’ll be navigating commercial real estate norms, contracts, and any local nondiscrimination rules that might exist in that sector. The critical takeaway is not to assume the same protections automatically carry over to commercial settings.

What states can do on their own terms

Some states decide to be more expansive, and that’s where the occasional surprises come in. A few examples might include:

• Extending certain anti-discrimination protections to activities related to commercial real estate in limited circumstances (for instance, in the sale of land that’s explicitly intended for housing alongside other uses).

• Requiring accessibility or reasonable accommodations in mixed-use developments that include housing components.

• Imposing additional reporting or advertising standards for all properties, not just residential ones, in certain regions.

If you’re working in jurisdictions with these broader rules, it’s essential to know the exact language. A quick consult with a state housing or civil rights agency can illuminate where the protections broaden beyond the traditional residential sphere.

Real-world implications for property professionals

For property owners, managers, and brokers, the distinction isn’t academic. It affects day-to-day decisions and risk management.

• Advertising and outreach: When you’re marketing a residential unit, you’ll want to avoid language or imagery that could be construed as discriminatory. The same care doesn’t automatically apply to a commercial property ad, but many organizations still follow fair housing-inspired guidelines as best practice to stay respectful and legally sound.

• Screening and leasing practices: In residential contexts, you’ll screen applicants for credit, rental history, and suitability, while ensuring you don’t discriminate based on protected characteristics. In commercial leasing, the criteria can be broader (business credit, revenue, occupancy plans, etc.). Still, businesses should avoid policies that could have a disparate impact on protected classes in housing-related contexts, especially for mixed-use projects.

• Accommodations and accessibility: In housing, reasonable accommodations for disabilities are a cornerstone. In commercial spaces, accessibility is governed by building codes and accessibility standards, which align with broader inclusive design goals but aren’t framed as housing protections.

• Enforcement and training: Understanding the basics of fair housing helps everyone stay on the right side of the law. Training staff to recognize bias, document decisions clearly, and handle complaints promptly reduces risk in both residential and related housing-adjacent situations.

A few practical scenarios

Here are a handful of everyday examples that illustrate the distinctions without getting too abstract:

• A landlord refuses to rent to a family with children. This is classic fair housing discrimination in a residential setting and would trigger enforcement action.

• A property company declines to lease a storefront to a business headed by someone who belongs to a protected class. If the property is purely commercial, this would fall under commercial real estate law and possibly broader discrimination statutes, not necessarily the federal Fair Housing Act.

• A mixed-use development includes a residential building and a retail component. If the developer has a hiring or leasing policy that blocks families or people with disabilities from accessing the housing portion, that could raise fair housing concerns for the residential units in the same project.

• An office space landlord applies a credit criterion that disproportionately filters out applicants from a protected group across a large sample. If the impact is rooted in housing considerations (like a residential aspect tied to the property), it could draw fair housing scrutiny; if it’s purely a business decision about commercial use, it may fall outside traditional housing protections.

How to stay compliant and mindful, without turning every decision into a maze

• Review the basics: Know the protected classes and the core housing activities covered by federal law. If you’re in a state with expanded protections, learn that addition too, especially if you’re involved in mixed-use developments.

• Keep your processes clean: Clear, non-discriminatory advertising; consistent screening and decision criteria; and a reliable documentation trail help you avoid missteps.

• Train for sensitivity, not shaming: Short, practical training for your team on recognizing bias and understanding how to handle requests for accommodations keeps the workplace fair and human.

• Respect accessibility as a standard, not a feature: In housing, accessibility isn’t optional. In commercial spaces, it’s often a legal requirement in terms of building codes and design standards, and it also broadens your audience.

• Know where to turn for help: If you suspect a policy or practice might be discriminatory, reach out to your state civil rights agency or a local HUD office. They can clarify where your jurisdiction stands and how to adjust practices accordingly.

A closing thought: fairness as good business

At its heart, fair housing is about opportunity, dignity, and practical fairness. It’s not just about compliance; it’s about building communities where people can find a place to call home without fear of bias. And when you’re thinking about commercial spaces, remember that while the core protections are residential in focus, thoughtful, inclusive practices help every part of the real estate ecosystem operate more smoothly. It’s about doing right by people, yes, but it’s also about running a respectful, sustainable business.

If you’re navigating this topic for work or study, keep the big idea in view: residential fair housing laws shield housing opportunities, while commercial property rules follow their own paths — often separate, sometimes overlapping, but always worthy of careful attention. And if a question pops up at night about whether a rule covers a storefront or a duplex, you’ll have the framework to answer confidently—without wading through guesswork. If you want, we can walk through more real-world examples or map out a quick decision guide for when a housing-related issue crosses into the commercial lane.