California Fair Housing Rules for Landlords (2025 Guide)
Understanding California’s fair housing laws is essential. It’s not just about avoiding penalties — it’s about showing professionalism and earning tenant trust. The California Civil Rights Department (CRD) enforces these rules and provides official housing guidance (CRD Housing Page).
1. Source of Income Is Protected
California law says landlords cannot discriminate against renters because of their source of income. This includes:
Section 8 Housing Choice Vouchers
HUD-VASH for veterans
ERAP or other rental assistance
If the money is a rent subsidy, you must treat it like any other income.
2. Credit Reports & Voucher Applicants (SB 267, 2023)
You cannot automatically deny a voucher applicant because of credit. This applies to all subsidy programs, not just Section 8.
Only judge their share of the rent.
Example: If rent is $2,500 and the voucher covers $2,000, you may only screen their ability to pay $500.Allow reasonable time.
Applicants must have a fair chance to prove they can pay their portion.
Rejecting voucher holders for credit alone = a CRD violation.
3. Occupancy Standards (“2 + 1” Rule with Local Clarifications)
The general guideline is two people per bedroom, plus one more in a common living area (like a living room or den).
Example: A 2-bedroom home = 5 people max.
City of Santa Barbara Nuance:
The municipal code excludes infants and minors from occupancy counts (ecode360.com).
Mission City Policy:
To keep things simple and consistent, we apply this standard across all rentals:
Children under 2 years old do not count toward occupancy.
This avoids confusion and ensures a family-friendly, legally sound approach.
4. Service Animals & ESAs Are Not Pets
By law, service animals and emotional support animals (ESAs) are not pets.
You must approve them if documentation is valid.
You cannot charge pet rent, deposits, or higher rent.
For ESAs, you may ask for a verification letter (not medical records).
For service animals, you can only ask two questions:
Is this animal required because of a disability?
What task has it been trained to perform?
Even with a “no pets” policy, you must allow service animals and ESAs without extra charges.
5. Penalties for Violations
California (CRD – Vouchers):
Declining a voucher tenant over credit = FEHA violation.
Penalties: fines, tenant damages, attorney’s fees, policy changes.
Settlements have reached $90,000–$280,000.
Federal (Fair Housing Act):
Covers classes like race, disability, or family status.
Civil fines (2025):
1st offense: up to $26,262
2nd offense: up to $65,653
3rd offense: up to $131,308
Plus: damages, attorney’s fees, and court orders.
Key takeaway:
Rejecting voucher holders = state violation (CRD).
Discrimination on other protected classes = federal violation (FHA).
Both carry heavy financial risks.
6. Why This Matters
This is why Mission City does not allow owner input during leasing.
Fair housing rules are complex, and one wrong step can cost tens of thousands of dollars. Our job as a professional management company is to follow the law exactly — even if that means saying “no” to certain owner preferences.
Many small mom-and-pop landlords may never get reported. But property managers and real estate professionals are secret-shopped and audited regularly. We are held to a higher standard.
By taking owner preferences out of the leasing process, Mission City protects you from risk — while showing tenants that our process is professional, consistent, and fair.
