1. What is Adverse Impact Ratio?

The Adverse Impact Ratio compares the rate of lease terminations between a protected group (affected group) and a comparison group (unaffected group) to identify potential discrimination in housing practices.

2. How Does the Calculator Work?

The calculator uses the Adverse Impact Ratio formula:

Where:

• Affected Group Rate — Percentage of lease terminations in the protected group
• Unaffected Group Rate — Percentage of lease terminations in the comparison group

Interpretation: A ratio of 0.8 or less (the "80% rule") may indicate adverse impact requiring further investigation.

3. Importance of Adverse Impact Analysis

Details: Analyzing adverse impact helps identify potential discriminatory practices in housing and ensures compliance with fair housing laws and regulations.

4. Using the Calculator

Tips: Enter the termination rates as percentages (0-100) for both the affected and unaffected groups. The unaffected group rate must be greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What constitutes adverse impact?
A: Generally, a ratio below 0.8 (80% rule) suggests adverse impact, but other statistical tests may be needed for confirmation.

Q2: How are the rates calculated?
A: Affected Group Rate = (Terminations in protected group ÷ Total in protected group) × 100

Q3: What protected groups should be considered?
A: Groups protected under fair housing laws (race, color, religion, national origin, sex, disability, familial status).

Q4: Is this calculator legally binding?
A: No, this provides preliminary analysis. Consult legal experts for formal assessments.

Q5: What if my ratio is exactly 0.8?
A: While 0.8 is the threshold, borderline cases may warrant additional statistical analysis.