Reviewed by Casa Academy and updated July 29, 2026 using the current DBPR checklist and Pearson VUE scheduling guidance.
Mrs. Murphy Exemption
The Mrs. Murphy exemption is a limited Fair Housing Act carve-out that allows owners who live in a dwelling with four or fewer units to discriminate in the sale or rental of units in that same building without federal FHA liability, though state and local fair housing laws may still apply.
Exam context
Mrs. Murphy exempts owner-occupier of four or fewer units from federal FHA in some private selection decisions. Does not exempt agents from license law. Larger buildings full FHA applies. ADA and state laws may still bind.
Federal scope limits
Congress named the exemption after a hypothetical boarding-house owner. It applies when the owner occupies one unit in a building of four units or fewer. Owners may choose tenants based on personal preference within the exempt units. The exemption does not apply to discriminatory advertising in interstate commerce or to properties with more than four units. It also does not override state laws that provide broader protection.
Agent responsibilities
Licensees remain bound by state fair housing rules and Realtor ethics even when a client qualifies for Mrs. Murphy at the federal level. Agents must not assist discriminatory advertising. Steering and selective marketing violate professional standards regardless of exemption. Document equal service policies for all listings.
Examples
Duplex owner-occupier
An owner lives in one side of a duplex and declines to rent the other side to smokers. Federal Mrs. Murphy may shield the owner from FHA familial status claims in that small owner-occupied building, but state law may differ.
Five-unit building
An owner occupies one unit in a five-unit apartment building. Mrs. Murphy does not apply because the building exceeds four units; federal fair housing rules govern tenant selection.
Keep studying
Related terms
- Fair Housing Act of 1968Federal law partially limited by Mrs. Murphy.
- Fair Housing Amendments Act of 1988Expanded protected classes still subject to exemption limits.
Related resources
- Free exam prep
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- Real estate glossary hub
Browse all published national glossary entries.
- Florida exam topic hub
Florida-specific explainers and question sets for this topic area.
Sources
- HUD: Fair Housing Act overview(U.S. Department of Housing and Urban Development)