The real answer is more nuanced — and more important — than most social media advice suggests. Here is what NC and SC landlords and renters need to know under the law.

In this article

1. Why criminal screening is complicated — and important
2. What the Fair Housing Act actually says
3. The one clear automatic exception in the law
4. What about murder, sex offenses, and DUI?
5. The public housing vs. private landlord distinction
6. What landlords in NC and SC can legally do
7. The right process: individualized review
8. What renters with a criminal record should know

1. Why Criminal Screening Is Complicated — and Important

Most landlords want safe properties. Most renters want a fair shot at housing, even if they made mistakes in the past. The law tries to balance both of those goals — but it is not as simple as a list of "allowed" and "not allowed" crimes.

Here is what makes this hard: having a criminal record is not a protected class under the Fair Housing Act. That means landlords can, in many cases, consider criminal history. But the way they use it matters enormously.

A blanket policy of automatically denying all applicants with any type of criminal conviction — or any arrest — almost certainly violates the Fair Housing Act. This is confirmed by HUD guidance issued in 2016, updated by memo in 2022, and reinforced again in April 2024. The NC Real Estate Commission published guidance on this to North Carolina licensees in November 2024.

Why does a blanket ban cause a problem? Because people of color and people with disabilities are statistically overrepresented in the criminal justice system. A policy that sounds neutral on its face — "we reject everyone with a conviction" — can cause a "disparate impact" on protected classes, which violates the Fair Housing Act even if the landlord had no intention to discriminate.

2. What the Fair Housing Act Actually Says

The Fair Housing Act (42 U.S.C. § 3601 et seq.) prohibits housing discrimination based on race, color, religion, sex, national origin, familial status, and disability. Criminal record is not on that list — but the law still applies to how criminal records are used.

❌ What landlords cannot do

Automatically deny every applicant with any conviction

Deny based on an arrest that did not result in a conviction

Apply criminal screening only to certain racial or national origin groups

Use a screening policy that has a disparate impact on protected classes without business justification

Deny without allowing the applicant to explain or appeal

✅ What landlords can do

Consider criminal history as part of a written, consistent policy applied equally to all applicants

Deny based on the manufacture or distribution of controlled substances (the one statutory exception)

Deny based on specific convictions that are directly relevant to tenancy safety, recency, and nature

Conduct an individualized review of each applicant's full circumstances

3. The One Clear Automatic Exception in the Law

The video is correct about one thing — but only partially. The Fair Housing Act does include one specific, written exception:

42 U.S.C. § 3607(b)(4): The Fair Housing Act explicitly states that housing providers do not have to make housing available to persons with convictions for the illegal manufacture or distribution of controlled substances. This is confirmed by the North Carolina Real Estate Commission's own published bulletin on the topic.

In plain language: a landlord may choose to automatically deny an applicant convicted of manufacturing or distributing illegal drugs. This is the only crime category the Fair Housing Act explicitly carves out for private landlords.

But there is an important word in that sentence: may. Even this exception is not required — it is a permission. And it applies to manufacturing and distribution, not to simple drug possession or use. Those are different charges with different legal implications.

A conviction for drug possession is not the same as a conviction for drug manufacturing or distribution. The exception in the Fair Housing Act applies only to manufacturing and distribution. Denying someone solely because of a possession conviction does not automatically fall under this exception and should still go through an individualized review.

4. What About Murder, Sex Offenses, and DUI?

The video implies that landlords cannot deny applicants with murder convictions, sex offense convictions, or DUI convictions — and that only "drug dealers" can be denied. This is a serious oversimplification. Here is what the law and HUD guidance actually say:

Sources: Fair Housing Act 42 U.S.C. § 3601 et seq.; HUD Criminal History Guidance (2016, 2022, 2024); NC Real Estate Commission Bulletin (Nov. 2024); Legal Aid of NC Fair Housing Project Guide (2024). This table is a general educational overview — consult an attorney for your specific situation.

5. The Public Housing vs. Private Landlord Distinction

The rules are stricter for landlords who accept government housing assistance (like Section 8 / Housing Choice Vouchers) or own federally subsidized properties. Private market landlords have more flexibility — but they are still subject to the Fair Housing Act.

For government-assisted housing, federal law requires two mandatory permanent bans:

• ✅Anyone subject to a lifetime registration requirement under any state's sex offender registry program must be permanently denied admission
• ✅Anyone convicted of manufacturing methamphetamine on federally assisted housing premises must be permanently denied

Note: the sex offender ban for government-assisted housing applies only to lifetime registrants. Someone required to register for a limited period of time is not subject to an automatic ban and should still receive an individualized review. Public housing authorities (PHAs) and assisted housing owners often misapply this rule — if you believe you were wrongly denied, you can request an informal review hearing.

For private market landlords in NC and SC, the mandatory automatic ban does not apply to sex offenders or murder convictions. But that does not mean these cannot be considered — it means they must be reviewed individually, not used as a blanket disqualifier.

6. What Landlords in NC and SC Can Legally Do

Here is the practical guidance for landlords in North Carolina and South Carolina, based on the NC Real Estate Commission's published bulletins and HUD guidance:

• ✅Write down your criminal screening policy before you start accepting applications — it must be documented and made available to all applicants before they apply
• ✅Apply it equally to every single applicant — running criminal checks on some applicants but not others based on their background is a fair housing violation
• ✅Do not use arrests as a basis for denial — only convictions count; an arrest record alone cannot be used to deny housing
• ✅Do not use expunged records — North Carolina law provides for expunction of certain criminal records; these legally cannot be considered
• ✅Consider the nature of the offense — is it actually relevant to whether someone will be a safe, responsible tenant? A shoplifting conviction from 15 years ago is very different from a recent violent crime
• ✅Consider recency — how long ago did the conviction occur? HUD guidance specifically says old convictions, especially for non-violent crimes, may have little bearing on current tenancy risk
• ✅Consider rehabilitation evidence — stable employment, positive references, and years of crime-free behavior after a conviction are all relevant factors
• ✅Allow applicants to respond — HUD guidance says applicants must be given a chance to challenge any potentially disqualifying information

In North Carolina, a fair housing violation can result in damages including actual damages, emotional distress damages, and attorney fees. A 2022 case in Louisiana where a housing provider used blanket criminal bans settled for $35,000 in damages. The NC Human Relations Commission enforces the NC State Fair Housing Act (N.C. Gen. Stat. Chapter 41A) alongside federal HUD enforcement. In 2023, 200 housing discrimination complaints were filed with HUD in North Carolina alone.

7. The Right Process: Individualized Review

The safest, most legally sound approach for private landlords in NC and SC is to conduct what HUD calls an individualized review. Here is what that looks like in practice:

1️⃣Start with your written policy

Define upfront what categories of conviction you will consider. Be specific about lookback periods (how many years back) and offense categories. Share this in writing before accepting application fees.

2️⃣Get written consent before running a background check

The Fair Credit Reporting Act (FCRA) requires written consent from each applicant before you run any consumer report, including criminal background checks.

3️⃣Assess what is actually relevant to tenancy

For each conviction found, ask: Is this offense relevant to whether this person will pay rent, follow the lease, and not harm other tenants or the property? A DUI has low direct relevance. A recent conviction for property destruction is highly relevant.

4️⃣Give the applicant a chance to respond

Before you deny based on a criminal record, send the applicant a copy of the screening report and the specific standard at issue. Give them a reasonable time to dispute any errors or provide context about their situation.

5️⃣Send an adverse action notice if you deny

If you deny the applicant based on a background check, the FCRA requires you to notify them in writing, identify the reporting agency, and tell them they have the right to request a free copy of the report within 60 days.

6️⃣Document everything

Keep your written policy, the applicant's consent, the screening report, your notes on why you denied or approved, and any communications with the applicant. NC experts recommend retaining these records for at least three years.

The NC REALTORS® and SC REALTORS® associations both offer member resources and attorney referrals to help landlords set up legally compliant criminal screening policies. The National Association of REALTORS® (NAR) also publishes updated fair housing compliance guidance at nar.realtor/fair-housing. Working with a licensed property manager who understands NC and SC law is one of the best ways to stay compliant.

8. What Renters with a Criminal Record Should Know

If you are renting in North Carolina or South Carolina and have a criminal record, you have rights. Here is what to know:

• ✅Ask for the written screening criteria before you pay any application fee — you have the right to know the standards before applying
• ✅Arrests alone cannot be used to deny you — only convictions can be considered, and even then, context matters
• ✅Expunged records cannot be considered — if your record was legally expunged in NC, a landlord cannot use it against you
• ✅You can appeal a denial — if you are denied based on a criminal report, you have the right to request an individualized review in writing and to dispute the accuracy of the report
• ✅You can request a copy of the screening report used to deny you under the Fair Credit Reporting Act (FCRA)
• ✅File a complaint if your rights were violated — you can file a fair housing complaint with HUD within one year of the discriminatory act at hud.gov/fairhousing/fileacomplaint, or contact Legal Aid of North Carolina's Fair Housing Project at fairhousingnc.org

In North Carolina, you can request your own statewide criminal record from any NC courthouse before you apply — this helps you know what a landlord will find and prepare your explanation in advance. NC courts only have in-state records; for out-of-state convictions, you will need to contact the courts in those states directly.

The Bottom Line

The video's oversimplification — that landlords can only deny "drug dealers" — is not accurate and not safe guidance to follow. The real law is more complex and more protective of both landlords and renters.

Here is the accurate summary:

• ✅Landlords may deny applicants convicted of manufacturing or distributing illegal drugs — this is the one explicit exception written into the Fair Housing Act
• ✅Landlords can also consider other convictions — including violent crimes and sex offenses — but only through an individualized review process that weighs recency, severity, and relevance to tenancy
• ✅Landlords cannot use blanket bans, cannot use arrest records, and cannot apply standards differently to different groups of people
• ✅Government-assisted housing has additional mandatory bans for lifetime sex offenders and for methamphetamine manufacturing on premises

For landlords in Charlotte, NC and beyond: the cost of getting this wrong — in damages, attorney fees, and fair housing complaints — far exceeds the cost of building a compliant screening policy with the help of a licensed property manager or real estate attorney.