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The Fair Housing Act, passed in 1968 as part of the Civil Rights Act, prohibits discrimination in renting based on factors such as marital status, sex, gender, age, disability, religion, color, race, or nationality. These are considered protected classes. Landlords cannot deny rental applications due to pregnancy, children, or caregiving responsibilities for elderly individuals. For landlords, it is crucial to recognize legal versus illegal reasons for application denial. For tenants, the Act provides rights and grounds for filing complaints if they experience discrimination. The video further explores implications for both landlords and tenants when reviewing rental applications.