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The Fair Housing Act, passed in 1968 as part of the Civil Rights Act, prohibits discrimination in rental applications based on marital status, sex, gender, age, disability, religion, color, race, or nationality. These categories are considered protected classes. Landlords cannot deny applications based on an applicant being pregnant, having children, or caring for an elderly person. For landlords, it is essential to recognize legal versus illegal reasons for denying rental applications. For tenants, the Act ensures rights and the ability to file complaints if discrimination occurs. The video explores both landlords' and tenants' perspectives regarding the Act.