The rules for housing discrimination were codified under the Fair Housing Act (FHA), and most landlords are subject to them. However, there is an exception to the rule called the Mrs. Murphy Exemption which allows a landlord to reject applicants for almost any reason.
What is the Mrs. Murphy Exemption?
The Mrs. Murphy Exemption allows property owners to deny applicants based on nearly any criteria they choose. If a property owner is the subject of a discrimination lawsuit, they can use the Mrs. Murphy Exemption as a legal defense.
This exemption states that if a single dwelling has four or fewer units, and the owner lives in one of those units, that home is not subject to FHA regulations and discrimination lawsuits.
The exemption comes from the idea that Mrs. Murphy (a fictitious owner of a multi-unit residential dwelling) should be able to pick who lives in the house with her. The origin, unfortunately, has racial underpinnings, as the origin of the exemption is that Mrs. Murphy wouldn’t want to eat with people of other races.
The Mrs. Murphy Exemption is a federal law that applies to the entire United States. However, each state has the right to reduce the reach of the Mrs. Murphy Exemption. If you potentially qualify for the exemption, be sure to check your state’s regulations before rejecting applicants for potentially discriminatory reasons.
A property owner planning to use the Mrs. Murphy Exemption cannot state their discriminatory practices in any marketing materials, advertisements, or on the application. If a landlord rejects an applicant for what would usually be discriminatory circumstances, the owner cannot inform the applicant of that reason.
Who Does the Mrs. Murphy Exemption Apply To?
The Mrs. Murphy Exemption applies to a property owner who lives in a single dwelling with four or fewer rental units. This would usually be the case with someone who owns a home and rents out individual rooms or the basement.
Also, there are a few situations where a landlord can lose the exemption. Here are a few:
- The owner gets a real estate license.
- The owner gets a second building.
- The owner hires a real estate professional to find tenants.
All three of these situations result in the landlord becoming a professional landlord, who cannot use the Mrs. Murphy Exemption.
Guide to the Mrs. Murphy Exemption
The Fair Housing Act designates a list of protected classes. Usually, if a landlord takes an adverse action (e.g., deny an application) against an applicant, it cannot be because the applicant belongs to any of these protected classes:
- Race
- Color
- National origin
- Familial status
- Disability
- Religion
- Sex (including gender identity and sexual orientation)
Implied in these protected classes is the existence of subgroups such as age, marital status, health, and cultural norms, such as clothing.
The Mrs. Murphy Exemption allows for the property owner to reject applicants for these reasons, even if the applicant is an otherwise stellar candidate.
Will the Mrs. Murphy Exemption Last?
Most people now consider the Mrs. Murphy Exemption outdated. General practice is that property owners (or anyone, for that matter) should not practice discrimination in any way.
This exemption was born out of racial prejudice. However, case law has now established that the Mrs. Murphy Exemption cannot be used to discriminate against applicants for race or color. In other words, the entire genesis of the exemption is now moot.
Today, few use this exemption anymore because most don’t want to be the property owner who discriminates. They may also be morally opposed to the idea in the first place. Some, such as the Harvard Civil Rights-Civil Liberties Law Review, have called to repeal the exemption.
Whether Congress formally repeals the exemption or it’s simply forgotten, the Mrs. Murphy Exemption seems unlikely to last much longer.
