State Preemption of Local Equitable Housing Policies

Mapping State Preemption of Local Equitable Housing Policies

This mapping tool developed by the Local Solutions Support Center brings together and updates research from Grounded Solutions Network, PowerSwitch Action, the Poverty & Race Research Action Council (PRRAC), the National Fair Housing Alliance, and the Urban Law Center, to document state preemption of inclusive and equitable local housing policies.

• The extent of each state’s preemption of local policy also depends on whether local governments are granted broader or more limited power by the state. Some states are governed by “home rule,” which gives local governments authority to govern themselves unless the state restricts them. Other states are governed by “Dillon’s Rule,” which limits local power to only what the state expressly grants. Because the details vary significantly across the country, local officials and advocates should research and understand the details of their particular state. Read more here.

BACKGROUND

The United States is in the midst of a housing crisis that touches every corner of the nation, with the BIPOC and low-income Americans who make up the majority of renters suffering the most. 

According to a recent compilation of Census data, 58% of Black American households and 53% of Hispanic households rent their homes. Less than a third (31%) of white households rent. A separate Census dataset from 2018 shows that Black households make up 20.2% of all renters in America compared with 8.1% of all homeowners.  

Moreover, according to the Joint Center For Housing Studies of Harvard University, renters with annual household incomes under $30,000 had a median of only $250 per month to spend after paying for housing and utilities in 2023; the percentage of severely cost-burdened renters has increased over time in every income bracket; and the percentage of renters who are cost-burdened with an income range of $45,000 to $74,999 has doubled to 45% since 2001. 

Local governments have taken the lead in addressing the nation’s housing crisis through policy reforms that protect tenants or increase access to affordable housing. But, as the map shows, this progress is increasingly imperiled by state preemption.

More About Each Type of Housing Preemption Law

To understand the impact of state interference, it helps to have a basic understanding of some of the most prominent examples of local efforts to advance equitable and inclusive housing policies.

SOURCE-OF-INCOME NONDISCRIMINATION

Source-of-income (SOI) nondiscrimination laws prevent landlords from refusing to rent to people solely because they receive federal assistance. These laws make it easier for families who receive federal assistance to find quality, stable affordable housing in communities that meet their needs. In many areas, SOI discrimination has a disproportionately severe effect on groups already likely to face discrimination based on characteristics protected by the Fair Housing Act, such as race and disability, reinforcing patterns of residential segregation. 

States that preempt these policies: Idaho, Indiana, Iowa, Kentucky, North Carolina, and Texas

INCLUSIONARY ZONING AND RELATED HOUSING PROGRAMS

Cities and counties have also used their role as land use regulators to institute inclusionary zoning ordinances. These programs encourage or require developers to offer some affordable housing for lower income families in exchange for their ability to develop valuable land. An inclusionary housing program might require developers to sell or rent 10 to 30 percent of new residential units to lower-income residents.

Many, but not all, programs partially offset the cost of providing affordable units by offering developers incentives such as tax abatements, parking reductions, or the right to build at higher densities. Most programs recognize that it’s not always feasible to include affordable on-site units within market-rate projects. In some cases, developers can choose among alternatives, such as payment of an in-lieu fee or provision of affordable off-site units in another project.

States that preempt these policies: Arizona, Colorado, Florida, Idaho, Indiana, Kansas, Montana, Tennessee, Texas, Virginia, and Wisconsin

REGULATION OF SHORT-TERM RENTALS

The rapid growth of short-term rental platforms, like Airbnb and VRBO, has raised significant concerns about their impact on housing affordability and availability. Local regulators have sought to mitigate these concerns by restricting the location or concentration of short-term rentals, or prohibiting them altogether, regulating the minimum length of stay, limiting short-term rentals to primary residences, requiring licenses for short-term rentals, and other regulatory strategies.

States that preempt these policies: Arizona, Florida, Idaho, Indiana, Iowa, Nebraska, Nevada, New Hampshire, North Carolina, Tennessee, Utah, Virginia, and Wisconsin

Rent regulations

Local regulations that cap the rate at which owners can increase rents over a period of time can help protect tenants from de facto (economic) eviction. These policies can include an annual or multi-year limit on the percentage increase in rents or it can be tied to an indicator like the consumer price index (CPI). Typically these rent regulations allow rents to exceed the maximum rate of increase for major repairs, rising operating costs, or cases of proven hardship. They also allow landlords to set the initial rent at any level when marketing a vacant unit or signing an initial lease. Limited increases then apply to the subsequent duration of tenancy.

States that preempt these policies: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Ohio, Oklahoma, Oregon, New Mexico, North Carolina, North Dakota, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington, and Wisconsin

CONCLUSION

As the mapping tool we are providing makes clear, local policies designed to foster communities of opportunity, equity, and inclusion are being compromised by preemption—state interference that is perpetuating inequality at a time of genuine crisis in affordable housing.

Table View by State

Alabama:

Rent Regulation Preemption – Ala. Code § 11-80-8.1

• Prohibits local governments from controlling rent.

ARIZONA:

Inclusionary Zoning Preemption –

• Cities and Towns: Ariz. Rev. Stat. Ann. § 9-461.16

  • Preempts certain local price-setting.

• Counties: Ariz. Rev. Stat. Ann. § 11-819

  • Limits counties from imposing inclusionary housing mandates.

Short-Term Rental Preemption –

• Cities and Towns: Ariz. Rev. Stat. Ann. § 9-500.39

  • Restricts local governments from regulating short-term rental occupancy beyond state standards.

• Counties: Ariz. Rev. Stat. Ann. § 11-269.17

  • Prohibits counties and cities from banning vacation or short-term rentals; local regulations must be narrowly tailored for health & safety.

Rent Regulation Preemption – Ariz. Rev. Stat. Ann. § 33-1329

• Prohibits local ordinances that limit rental amounts or impose rent control.

Arkansas:

Rent Regulation Preemption –

• Municipalities: Ark. Code Ann. § 14-54-1409

  • Prevents municipalities from enacting rent control or limiting the amount of rent charged.

• Counties: Ark. Code Ann. § 14-16-601

  • Bars local governments from restricting rents on private residential units.

California:

Rent Regulation Preemption – Cal. Civ. Code §§ 1954.50-.53

• Provides that landlords may set rents freely.

Colorado:

Inclusionary Zoning Preemption – Town of Telluride v. Lot Thirty-Four Venture 3 P.3d 3o (CO 2000)

• Inclusionary zoning that functions like rent control is not permitted.

Rent Regulation Preemption – Colo. Rev. Stat. § 38-12-301

• Prohibits any county or municipality from enacting rent control on private residential property.

Connecticut:

Rent Regulation Preemption – Old Colony Gardens, Inc. v. Stamford, 147 Conn. 60, 156 A.2d 646 (1959)

• Municipalities do not have authority granted to them to create rent control ordinances. Other regulations are permitted, such as preventing excessive raises.

Florida:

Short-Term Rental Preemption – Fla. Stat. § 509.032(7)(b)

• Prevents local governments from prohibiting vacation rentals or regulating rental duration and frequency.

Rent Regulation Preemption – Fla. Stat. § 166.043

• Rent regulation only permitted if approved via local referendum and under specific housing conditions.

Georgia:

Rent Regulation Preemption – Ga. Code Ann. § 44-7-19

• Prohibits local rent-control ordinances.

Idaho:

Source-of-Income Nondiscrimination Preemption – Idaho Code § 55-307(2)

• Local governments cannot enact, maintain, or enforce an ordinance or a resolution that forces participation in an optional federal housing assistance program.

Inclusionary Zoning Preemption – Mt. Cent. Bd. of Realtors v. City of McCall, No. CV 2006-490-C (4th Jud. Dist. Idaho Feb. 19, 2008).

• Prohibits at least some form of local inclusionary housing policies as an unconstitutional tax.

Short-Term Rental Preemption – Idaho Code § 67-6539

• Prevents municipalities from banning short-term rentals; local governments may impose reasonable regulations for health, safety, and welfare but cannot outright ban STRs.

Rent Regulation Preemption – Idaho Code § 55-307

• Restricts local governments from imposing rental caps or regulating landlord-tenant agreements beyond state law.

Illinois:

Rent Regulation Preemption – 50 Ill. Comp. Stat. 825/1

• Prohibits municipalities from enacting, maintaining, or enforcming rent control

Indiana:

Source-of-Income Nondiscrimination Preemption – Ind. Code § 36-1-3-8.5

• Local governments may not adopt or enforce an ordinance that requires or would have the effect of requiring a landlord to participate in Sectoin 8 housing.

Inclusionary Zoning Preemption – Ind. Code § 32-31-1-20

• Prohibits municipalities from regulating rent, including through zoning.

Short-Term Rental Preemption – Ind. Code § 36-1-24

• States that owner-occupied short term rentals are a permitted residential use; local ordinances cannot prohibit or unreasonably restrict them.

Rent Regulation Preemption – Ind. Code. § 32-31-1-20

• Prohibits municipalities from regulating rent.

Iowa

Rent Regulation Preemption –

• Counties: Iowa Code § 331.304(10)

  • Prohibits counties from adopting ordinances regulating landlord-tenant relationships, including rent-control measures.

• Cities: Iowa Code § 364.3(9) (2017)

  • Prohibits cities from adopting any ordinance regulating rental deposits, rent levels, or landlord-tenant matters unless expressly permitted.

Source-of-Income Nondiscrimination Preemption – Iowa Code § 364.3(12)(a)

• Prohibits cities from adopting ordinances requiring landlords to accept housing-choice vouchers or banning discrimination based on lawful source of income.

Short-Term Rental Preemption – Iowa Code §§ 331.304(17), 364.3(13)

• Prevents local governments from regulating short-term rentals unless for public health and safety.

Kansas:

Inclusionary Zoning Preemption – Kan. Stat. Ann. § 12-16,120

• Prohibits cities and counties from imposing mandatory inclusionary zoning.

Rent Regulation Preemption – Kan. Stat. Ann. § 12-16,120

• Prohibits cities and counties from regulating rent.

Kentucky:

Source-of-Income Nondiscrimination Preemption – H.B. 18, 2024 Gen. Assemb., Reg. Sess. (Ky. 2024)

• Prohibits local rent control of private property.

Rent Regulation Preemption – Ky. Rev. Stat. Ann. § 65.875

• Prohibits local governments from adopting or enforcing ordinances that prohibit owners from refusing to lease or rent to a person whose source of income to pay rent includes funding from a federal housing assistance program.

Louisiana:

Rent Regulation Preemption – La. Stat. Ann. § 9.3258

• Prohibits parishes and municipalities from enacting rent control.

Massachusetts:

Rent Regulation Preemption – Mass. Gen. Laws ch. 40P, § 4

• Prohibits municipalities from adopting rent control unless they hold a referendum and provide compensation to landlords.

Michigan:

Rent Regulation Preemption – Mich. Comp. Laws § 123.411

• Prohibits local governments from adopting rent control ordinances unless authorized by state law.

Minnesota:

Rent Regulation Preemption – Minn. Stat. § 477.9996.

• Bars local governments from adopting rent control unless approved by a general election.

Mississippi:

Rent Regulation Preemption – Miss. Code Ann. § 21-17-5 (2)(h)

• Prohibits ordinances that set or limit residential rental rates.

Missouri:

Rent Regulation Preemption – Mo. Rev. Stat. § 441.043.

• Prohibits municipalities from adopting ordinances that regulate rent or otherwise control residential rental prices.

MONTANA:

Inclusionary Zoning Preemption – Mont. Code Ann. § 76-2-114.

• Municipality may not dedicate real property for the purpose of providing housing for specified income levels or at specified sale prices

Rent Regulation Preemption – Mont. Code Ann. § 7-1-111(26)

• Prohibits local governments from regulating landlord-tenant relationships

Nebraska:

Short-Term Rental Preemption – Neb. Rev. Stat. §18-1758

• Prohibits municipalities from adopting or enforcing ordinances that expressly or effectively prohibit short-term rentals.

Nevada

Short-Term Rental Preemption – Nev. H.R. A.B. 363, 81st Leg., 2021 Sess. (enacted June 4, 2021, ch. 388)

• Requires municipalities to allow and regulate short-term rentals under a uniform statewide framework, preventing them from imposing outright bans or rules that conflict with the state’s mandated baseline requirements.

New Hampshire:

Short-Term Rental Preemption – N.H. Rev. Stat. Ann. § 48-A:2

• Prevents municipalities from imposing additional ordinances, codes, bylaws, licenses, certificates, or restrictions on short term rentals beyond health and safety regulations

New Mexico:

Rent Regulation Preemption – N.M. Stat. Ann. § 47-8A-1

• Prohibits municipalities from controlling rent.

North Carolina:

Source-of-Income Nondiscrimination Preemption – N.C. Gen. Stat. § 42‑14.1(b)

• Prohibits bans on source-of-income discrimination.

Rent Regulation Preemption – N.C. Gen. Stat. § 42-14.1(a)

• Prohibits local governments from enacting rent control or regulating the amount of rent charged.

Short-Term Rental Preemption – N.C. Gen. Stat. ch. 42A

• Limits the ability of localities to regulate certain short-term rental aspects.

North Dakota:

Rent Regulation Preemption – N.D. Cent. Code § 47-16-02.1.

• Prohibits political subdivisions from enacting rent control or ordinances dictating rent levels.

Ohio:

Rent Regulation Preemption – Ohio Rev. Code Ann. § 5321.20(K)

• Expressly preempts local authority on rent regulation.

Oklahoma:

Rent Regulation Preemption – Okla. Stat. tit. 11., § 11-14-101.1

• Bars municipalities from adopting rent control or ordinances regulating the price of privately owned rental housing.

Oregon:

Rent Regulation Preemption – Or. Rev. Stat. § 91.225

• Prohibits local governments from adopting rent control except as allowed by state statute.

South Carolina:

Rent Regulation Preemption – S.C. Code Ann. § 27-39-60

• Requires uniform statewide landlord-tenant regulations and bars municipalities from imposing certain additional requirements.

South Dakota:

Rent Regulation Preemption – S.D. Codified Laws § 6-1-13

• Prohibits municipalities from enacting rent control or regulating the price of private residential rentals.

Tennessee:

Inclusionary Zoning Preemption – Tenn. Code. Ann. § 66-35-102

• Prohibits municipalities from enacting mandatory inclusionary zoning.

Short-Term Rental Preemption – Tenn. Code Ann. § 13-7-603

• Prevents local governments from prohibiting or effectively prohibiting short-term rentals, with some regulations allowed.

Rent Regulation Preemption – Tenn. Code. Ann. § 66-35-102

• Prevents municipalities from setting rent below market rates.

Texas:

Source-of-Income Nondiscrimination Preemption – Tex. Loc. Gov’t Code Ann. § 250.007

• Local governments may not adopt policies that prohibit the refusal to lease or rent a housing accommodation to a person because the person's lawful source of income.

Inclusionary Zoning Preemption – Tex. Loc. Gov’t Code Ann. § 214.905

• Prohibits municipalities from imposing mandatory inclusionary zoning.

Rent Regulation Preemption – Tex. Loc. Gov’t Code § 214.902

• Rent regulation only permitted if approved by the governor and under specific housing conditions.

Utah:

Short-Term Rental Preemption – Utah Code §§ 10-8-85.4, 17-50-338

• Prohibits municipalities from banning short-term rentals on the basis of listings alone and limits enforcement tools; allows reasonable regulation.

Rent Regulation Preemption – Utah Code § 57-20-1

• Prohibits municipalities from controlling rent.

VIRGINIA:

Inclusionary Zoning Preemption – Bd. of Supervisors v. De Groff Enters., Inc., 214 Va. 235, 198 S.E.2d 600 (1973).

• The Virginia Supreme Court has invalidated a mandatory inclusionary housing ordinance

Short-Term Rental Preemption – Va. Code Ann. § 15.2-983

• Prevents localities from requiring special exception or conditional use permits for short-term rentals when the dwelling is the owner’s primary residence.

Washington:

Rent Regulation Preemption – Wash. Rev. Code § 35.21.830

• Prohibits municipalities from adopting rent control ordinances or regulating the price of private residential property.

Wisconsin:

Inclusionary Zoning Preemption – Wis. Stat. § 66.1015

• Prohibits political subdivisions from imposing inclusionary zoning requirements.

Short-Term Rental Preemption – Wis. Stat. §66.1014

• Prohibits political subdivisions from banning rentals of seven or more consecutive days; limits local regulations that would functionally prohibit short-term rentals.

Rent Regulation Preemption – Wis. Stat. § 66.1015

• Prohibits political subdivisions from controlling rent.