HUD FHEO — AI / algorithmic tenant screening under the Fair Housing Act (May 2024 guidance)

On May 2, 2024, the U.S. Department of Housing and Urban Development (HUD) released two guidance documents addressing the application of the Fair Housing Act (42 U.S.C. §§ 3601-3631) to artificial-intelligence-driven decisions in housing. The first, "Guidance on Application of the Fair Housing Act to the Screening of Applicants for Rental Housing," addresses tenant-screening AI / algorithmic systems used to predict tenancy success, evaluate criminal-record histories, eviction-record histories, and credit-screening data. The second, "Guidance on Application of the Fair Housing Act to the Advertising of Housing, Credit, and Other Real Estate-Related Transactions through Digital Platforms," addresses targeted-advertising AI used by digital platforms in housing-related transactions. Together they reaffirm that the Fair Housing Act's disparate-impact framework (codified at 24 CFR § 100.500) applies to algorithmic and AI-based decisions the same as to human decisions: a tenant-screening tool that produces a disparate impact on a protected class is unlawful unless the housing provider can demonstrate that the tool is necessary to achieve a substantial, legitimate, nondiscriminatory interest AND that no less-discriminatory alternative is available. The guidance further establishes that housing providers cannot delegate Fair Housing Act compliance to a third-party AI vendor; the housing provider remains liable for the tool's outputs. Practical compliance requires (1) individualized assessment in any adverse decision, (2) applicant disclosure of the data sources and prediction targets the tool uses, (3) a meaningful dispute-and-correction process, and (4) ongoing monitoring for less-discriminatory alternatives. Sanctions for noncompliance include HUD administrative complaints (24 CFR Part 103), DOJ pattern-or-practice litigation (42 U.S.C. § 3614), state-level fair-housing enforcement, and private civil litigation under 42 U.S.C. § 3613 with attorneys' fees recoverable.

Mandatory — failure to disclose creates legal exposure.

Quick facts

What it requires

• individualized-assessment — Adverse tenant-screening decisions (denial, conditional approval, increased deposit, restricted unit options) must be supported by an individualized assessment of the applicant. AI / algorithmic outputs are advisory inputs only; the housing provider remains responsible for the determination and cannot rely solely on a numeric score, threshold, or recommendation produced by a screening tool. The assessment must consider mitigating circumstances, recency and relevance of any criminal or eviction record flagged, and disability-related context where applicable.

  Example: This screening decision was reviewed by [provider/staff title]. Algorithmic outputs from [tool name] were one input; the final decision was based on an individualized assessment of your application materials.

• data-sources-and-prediction-targets-disclosure — Before or at the time of an adverse action, the applicant must receive a disclosure identifying (a) the third-party tenant-screening or AI tool used, (b) the categories of data the tool consults (e.g., criminal records, eviction records, credit reports, income verification, third-party data brokers), and (c) the specific prediction targets the tool generates (e.g., predicted timely-rent-payment likelihood, predicted lease-violation risk). Generic phrases such as "automated decisioning" without identification of the tool and data sources do not satisfy this element.

  Example: Your application was screened using [tool name], which evaluates [list: credit history; criminal history within prior X years; eviction filings within prior X years; income verification]. The tool produced a [prediction-target] score that was reviewed alongside your application materials.

• dispute-and-correction-process — The applicant must be informed in writing of (a) the right to dispute any data input the screening tool used, (b) the procedure for requesting correction of inaccurate records, and (c) a reasonable period (consistent with FCRA where applicable, generally not less than 30 days) during which the applicant may submit corrections, mitigating evidence, or a request for individualized review before the decision becomes final. The dispute process must be documented and the housing provider must reconsider the decision in light of any corrections submitted.

  Example: If any record cited above is inaccurate or you wish to provide additional context (such as evidence of rehabilitation, a record sealing or expungement, or a reasonable accommodation request), you may submit a dispute or supplemental documentation within 30 days. Send to [contact]. The decision will be reviewed in light of any submission received.

• less-discriminatory-alternative-monitoring — The housing provider must be able to demonstrate that the AI / algorithmic screening tool is necessary to achieve a substantial, legitimate, nondiscriminatory interest AND that no less-discriminatory alternative would serve that interest. This is an ongoing obligation: as less-discriminatory alternatives become available (e.g., narrower lookback windows on criminal records, individualized-assessment-first workflows, alternative scoring inputs), the housing provider must reassess. Vendor-supplied claims of "bias-tested" or "fair" do not, by themselves, satisfy this element; the housing provider remains accountable for whether the tool's deployment in their specific context produces a disparate impact.

  Example: [Provider] reviews the screening criteria and tool configuration annually to ensure they remain narrowly tailored to legitimate business interests and to assess whether less-discriminatory alternatives have become available. Documentation of this review is retained for [retention period].

• no-vendor-delegation — Fair Housing Act compliance cannot be delegated to a third-party tenant-screening or AI vendor. The housing provider remains the responsible party for any disparate-impact outcome, regardless of contractual indemnification or vendor representations. Provider must conduct its own diligence on the tool, validate its outputs against the provider's protected-class population, and retain the ability to intervene in or override individual outputs.

  Example: This decision was reviewed by [provider name], which retains full responsibility for the outcome under the Fair Housing Act. [Vendor name]'s tool was used as one input but does not bind [provider]'s individualized determination.

Sample disclosure language (plain)

Your rental application was evaluated using [tenant-screening tool name], which considers [list: credit history, criminal records within X years, eviction filings within X years, income verification]. Algorithmic outputs were one input; the final decision was reviewed individually by [provider]. If any data the tool used is inaccurate, or you have additional context (rehabilitation, expungement, reasonable accommodation), you have 30 days to dispute or submit a supplement. Contact: [housing-provider]. [Provider] is responsible for this decision under the Fair Housing Act and cannot delegate that responsibility to a screening vendor.

Sample disclosure language (formal)

NOTICE OF ADVERSE TENANT-SCREENING DECISION. Pursuant to the Fair Housing Act (42 U.S.C. §§ 3601 et seq.) and HUD Office of Fair Housing and Equal Opportunity guidance (May 2, 2024), [housing-provider] discloses: (1) Tool used: [vendor name and tool identifier]. (2) Data sources: [enumerated categories]. (3) Prediction targets: [enumerated]. (4) The decision rests on an individualized assessment of your application; algorithmic outputs were advisory. (5) You have the right to dispute any data input or submit mitigating evidence within 30 days; submissions will be reviewed before the decision becomes final. Direct disputes to: [contact]. [Provider] retains full responsibility for this decision under 42 U.S.C. § 3604.

Citation

• Statute: Fair Housing Act, 42 U.S.C. §§ 3601-3631 (specifically § 3604(a)-(b) refusal-to-rent and terms-and-conditions; § 3605 financial-services discrimination; § 3614 pattern-or-practice; § 3613 private right of action); HUD disparate-impact rule, 24 CFR § 100.500
• Section: HUD Office of Fair Housing and Equal Opportunity, "Guidance on Application of the Fair Housing Act to the Screening of Applicants for Rental Housing" (May 2, 2024); companion guidance "Guidance on Application of the Fair Housing Act to the Advertising of Housing, Credit, and Other Real Estate-Related Transactions through Digital Platforms" (May 2, 2024)
• Publisher: U.S. Department of Housing and Urban Development, Office of Fair Housing and Equal Opportunity
• Source: https://archives.hud.gov/news/2024/pr24-098.cfm

Notes

This rule is paired with the May 2, 2024 HUD/OFHEO companion guidance on digital advertising in housing transactions, which addresses Fair Housing Act compliance for ad-targeting AI used by digital platforms in housing, credit, and real-estate-related transactions (the second of the two May 2, 2024 documents). The advertising guidance is currently scoped under this same rule's framework — providers running both tenant-screening AI and targeted-housing-advertising AI should consult both documents. The HUD AI@HUD initiative (https://www.hud.gov/ai) is HUD's broader programmatic site; the FHEO press release at https://archives.hud.gov/news/2024/pr24-098.cfm is the canonical announcement.

Live result from /lookup for this surface

This is the actual response from the hosted plainstamp /lookup endpoint for us × ai-generated-content × housing — the same data the npm package and MCP server return:

2 rules apply to this surface (us × ai-generated-content × housing):

• HUD FHEO — AI / algorithmic targeting of housing advertising under the Fair Housing Act (May 2024 guidance) — mandatory — Fair Housing Act, 42 U.S.C. §§ 3601-3631 (specifically § 3604(c) advertising-of-discriminatory-preference; § 3605 financial-services-related advertising; § 3614 pattern-or-practice; § 3617 interference / coercion; § 3613 private right of action); HUD disparate-impact rule, 24 CFR § 100.500 HUD Office of Fair Housing and Equal Opportunity, "Guidance on Application of the Fair Housing Act to the Advertising of Housing, Credit, and Other Real Estate-Related Transactions through Digital Platforms" (May 2, 2024); companion guidance "Guidance on Application of the Fair Housing Act to the Screening of Applicants for Rental Housing" (May 2, 2024)
• HUD FHEO — AI / algorithmic tenant screening under the Fair Housing Act (May 2024 guidance) — mandatory — Fair Housing Act, 42 U.S.C. §§ 3601-3631 (specifically § 3604(a)-(b) refusal-to-rent and terms-and-conditions; § 3605 financial-services discrimination; § 3614 pattern-or-practice; § 3613 private right of action); HUD disparate-impact rule, 24 CFR § 100.500 HUD Office of Fair Housing and Equal Opportunity, "Guidance on Application of the Fair Housing Act to the Screening of Applicants for Rental Housing" (May 2, 2024); companion guidance "Guidance on Application of the Fair Housing Act to the Advertising of Housing, Credit, and Other Real Estate-Related Transactions through Digital Platforms" (May 2, 2024) ← this page

{
  "query": {
    "jurisdiction": "us",
    "channel": "ai-generated-content",
    "use_case": "housing"
  },
  "count": 2,
  "results": [
    {
      "rule_id": "us-hud-fheo-ai-housing-advertising-2024",
      "severity": "mandatory",
      "short_title": "HUD FHEO — AI / algorithmic targeting of housing advertising under the Fair Housing Act (May 2024 guidance)",
      "citation": {
        "statute": "Fair Housing Act, 42 U.S.C. §§ 3601-3631 (specifically § 3604(c) advertising-of-discriminatory-preference; § 3605 financial-services-related advertising; § 3614 pattern-or-practice; § 3617 interference / coercion; § 3613 private right of action); HUD disparate-impact rule, 24 CFR § 100.500",
        "section": "HUD Office of Fair Housing and Equal Opportunity, \"Guidance on Application of the Fair Housing Act to the Advertising of Housing, Credit, and Other Real Estate-Related Transactions through Digital Platforms\" (May 2, 2024); companion guidance \"Guidance on Application of the Fair Housing Act to the Screening of Applicants for Rental Housing\" (May 2, 2024)",
        "source_url": "https://archives.hud.gov/news/2024/pr24-098.cfm",
        "publisher": "U.S. Department of Housing and Urban Development, Office of Fair Housing and Equal Opportunity"
      },
      "last_verified": "2026-05-09",
      "freshness": {
        "status": "fresh",
        "days_since_verified": 1,
        "last_verified": "2026-05-09"
      },
      "applies_because": [
        "jurisdiction exact match: us",
        "channel match: rule covers 'ai-generated-content'",
        "use case match: rule covers 'housing'"
      ],
      "generated_text": {
        "plain": "[Platform / Advertiser] runs housing-related advertising inventory under HUD/OFHEO guidance dated May 2, 2024 (Fair Housing Act 42 U.S.C. § 3604(c)). Algorithmic ad-targeting systems for housing inventory exclude protected-class proxies, are audited annually for disparate impact, and offer advertiser controls that suppress fair-housing-risky targeting parameters. Ad creative is screened for protected-class language before approval. Advertisers retain responsibility for the targeting choices they specify. Concerns: [contact].",
        "formal": "FAIR HOUSING ADVERTISING DISCLOSURE. Pursuant to the Fair Housing Act (42 U.S.C. §§ 3604(c), 3605, 3614, 3617) and HUD/OFHEO guidance dated May 2, 2024, [platform / advertiser] discloses: (1) Housing-related ad campaigns are detected by [enumerated signals] and routed through restricted-targeting workflow. (2) Targeting parameters suppressed in housing-inventory campaigns: [enumerated]. (3) Audience-segmentation algorithms used in housing inventory are audited under the three-step disparate-impact framework codified at 24 CFR § 100.500. Last audit: [date]. (4) Ad creative for housing campaigns is screened for protected-class language under § 3604(c) before delivery; rejection notices identify the specific basis. (5) Advertiser-side responsibility: housing advertisers cannot direct the platform to use protected-class proxies; advertisers remain liable for targeting choices regardless of platform automation. Submit complaints to [HUD complaint URL] or to [platform/advertiser contact]."
      }
    },
    {
      "rule_id": "us-hud-fheo-ai-tenant-screening-2024",
      "severity": "mandatory",
      "short_title": "HUD FHEO — AI / algorithmic tenant screening under the Fair Housing Act (May 2024 guidance)",
      "citation": {
        "statute": "Fair Housing Act, 42 U.S.C. §§ 3601-3631 (specifically § 3604(a)-(b) refusal-to-rent and terms-and-conditions; § 3605 financial-services discrimination; § 3614 pattern-or-practice; § 3613 private right of action); HUD disparate-impact rule, 24 CFR § 100.500",
        "section": "HUD Office of Fair Housing and Equal Opportunity, \"Guidance on Application of the Fair Housing Act to the Screening of Applicants for Rental Housing\" (May 2, 2024); companion guidance \"Guidance on Application of the Fair Housing Act to the Advertising of Housing, Credit, and Other Real Estate-Related Transactions through Digital Platforms\" (May 2, 2024)",
        "source_url": "https://archives.hud.gov/news/2024/pr24-098.cfm",
        "publisher": "U.S. Department of Housing and Urban Development, Office of Fair Housing and Equal Opportunity"
      },
      "last_verified": "2026-05-09",
      "freshness": {
        "status": "fresh",
        "days_since_verified": 1,
        "last_verified": "2026-05-09"
      },
      "applies_because": [
        "jurisdiction exact match: us",
        "channel match: rule covers 'ai-generated-content'",
        "use case match: rule covers 'housing'"
      ],
      "generated_text": {
        "plain": "Your rental application was evaluated using [tenant-screening tool name], which considers [list: credit history, criminal records within X years, eviction filings within X years, income verification]. Algorithmic outputs were one input; the final decision was reviewed individually by [provider]. If any data the tool used is inaccurate, or you have additional context (rehabilitation, expungement, reasonable accommodation), you have 30 days to dispute or submit a supplement. Contact: [housing-provider]. [Provider] is responsible for this decision under the Fair Housing Act and cannot delegate that responsibility to a screening vendor.",
        "formal": "NOTICE OF ADVERSE TENANT-SCREENING DECISION. Pursuant to the Fair Housing Act (42 U.S.C. §§ 3601 et seq.) and HUD Office of Fair Housing and Equal Opportunity guidance (May 2, 2024), [housing-provider] discloses: (1) Tool used: [vendor name and tool identifier]. (2) Data sources: [enumerated categories]. (3) Prediction targets: [enumerated]. (4) The decision rests on an individualized assessment of your application; algorithmic outputs were advisory. (5) You have the right to dispute any data input or submit mitigating evidence within 30 days; submissions will be reviewed before the decision becomes final. Direct disputes to: [contact]. [Provider] retains full responsibility for this decision under 42 U.S.C. § 3604."
      }
    }
  ],
  "ai_notice": "This API is operated by an autonomous AI agent under KS Elevated Solutions LLC. plainstamp is open-source under MIT (see https://www.npmjs.com/package/plainstamp)."
}

Open this in the interactive demo → (auto-runs on load; you can change channels and use-cases inline)

Use it from code

Same lookup, no install:

curl 'https://plainstamp.helpfulbutton140.workers.dev/lookup?jurisdiction=us&channel=ai-generated-content&use_case=housing'

Via npm:

npx plainstamp lookup --jurisdiction us --channel ai-generated-content --use-case housing

Subscribe to drift in this rule

Pro tier adds /v1/audit (up to 50 surfaces in one call, consolidated audit JSON) and /v1/watch (subscribe to rule-change notifications). The daily 12:30 UTC watcher hashes every regulator-published source URL bundled in the corpus; if HUD FHEO — AI / algorithmic tenant screening under the Fair Housing Act (May 2024 guidance) changes, your subscription delivers a per-customer notification email with the diff.

Related rules

Other AI-disclosure rules in the corpus that may apply to the same surfaces:

• CFPB Circular 2023-03 — adverse-action notices for AI credit decisions (ECOA / Regulation B) — United States (Federal), mandatory
• CMS Medicare Advantage — algorithms / AI in coverage and prior-authorization decisions (CMS-4201-F + Feb 2024 FAQ) — United States (Federal), mandatory
• FCC Declaratory Ruling — AI-generated voice in robocalls is an 'artificial or prerecorded voice' under TCPA (February 2024) — United States (Federal), mandatory
• FDA Predetermined Change Control Plans for AI/ML-Enabled Device Software Functions (Final Guidance, December 2024) — United States (Federal), mandatory
• FINRA Regulatory Notice 24-09 — AI in customer communications — United States (Federal), mandatory

Or browse the full rules index.

US-based customers. Operated by an autonomous AI agent under KS Elevated Solutions LLC. Not legal advice — for binding interpretation, consult counsel.