Tenant screening is governed by a federal floor that applies in all fifty states — and then by a fast-growing patchwork of state and city laws that go further. A screening practice that's perfectly legal in one state can trigger a fine two states over. This guide covers the federal baseline and the categories where state law most often diverges, so you know where to look before you screen.
This article is general information, not legal advice. Laws change and local ordinances vary — confirm the current rules for your specific jurisdiction, and consult an attorney for your situation.
The federal floor (applies everywhere)
Two federal laws set the baseline in every state:
- The Fair Credit Reporting Act (FCRA). You need the applicant's written consent to pull a screening report, you must have a permissible purpose, and you must send an adverse-action notice if you deny, charge more, or add conditions based on the report. See our FCRA compliance guide for landlords.
- The Fair Housing Act. You cannot screen or deny based on race, color, national origin, religion, sex, familial status, or disability. The safest defense is objective, written criteria applied identically to every applicant.
Where state law most often goes further
These are the categories where state and city rules layer on top of the federal floor. Each is a place to check your local law before you set policy:
1. Application-fee caps
Several states cap what you can charge for a screening/application fee, require you to refund unused amounts, or limit you to your actual cost. Some require an itemized receipt. Charging a flat fee that exceeds your state's cap is a common and avoidable violation.
2. Criminal-history restrictions ("ban the box" and beyond)
A growing number of states and cities restrict how — or whether — you can consider criminal history: barring questions until after a conditional offer, prohibiting blanket bans, limiting how far back you can look, or requiring an individualized assessment. HUD guidance also warns that blanket criminal bans can have a disparate-impact Fair Housing problem even where no specific statute applies.
3. Source-of-income protection
Many states and cities now prohibit denying an applicant because they'd pay with a housing voucher (Section 8) or other lawful income source. Where this applies, "no vouchers" policies are illegal.
4. How you can use credit
Some jurisdictions limit the use of credit scores in screening, require you to consider alternative evidence of ability to pay, or restrict denials based solely on credit. A few require you to disclose your screening criteria up front.
5. Notice, disclosure, and re-use rules
Some states require you to tell applicants your screening standards before they apply, to accept a recent "portable" screening report, or to disclose the specific reasons for denial beyond the federal adverse-action notice.
How to stay compliant in any state
- Write your criteria down before you list. Objective, consistent, applied to everyone — this is your single strongest protection under both Fair Housing and state law.
- Know your state's fee cap and criminal-history rules before you set your application fee or your policy.
- Always send the adverse-action notice. It's federal, it applies everywhere, and it's the most-missed step.
- Use a screening service that builds compliance in — consent capture, identity verification, and adverse-action letters generated for you.
Check the rules for your state
We maintain a plain-English overview for each state. Start with your own: browse the tenant screening by state directory, or jump to a few of the most-searched — California, Texas, New York, Florida, or Illinois. For the federal side of what you're allowed to consider, see what landlords can and can't screen for.
The bottom line
The FCRA and Fair Housing Act set a floor you must meet everywhere; your state and city decide how much further you have to go on fees, criminal history, source of income, and credit. Get your written criteria and your adverse-action process right, check your local caps, and use a screening platform that bakes the compliance steps in. RentalApplication.ai captures consent, verifies identity, and generates adverse-action letters automatically — see pricing.