Verified against official sources — 31 Oct 2026

Renting Your First Home in the USA: Leases, Deposits and the Scams to Avoid

NEW Published 31 October 2026

Illustration for renting your first home in the usa

What a lease commits you to, how a security deposit works at the federal level, the FTC's rental-scam playbook, and the Fair Housing Act's protections — with the state-law parts flagged as state law.

Renting is usually the largest transaction a newcomer makes in their first month in the United States — and the one they know least about. The rules split three ways, kept visibly separate here. The Federal Trade Commission publishes the fraud warnings; the Consumer Financial Protection Bureau covers screening reports and your rights when one is used against you; and federal fair housing law, enforced by HUD, sets the discrimination rules for almost every rental. The numbers most articles lead with — how large a deposit may be, how fast it must come back — are set by state law, which is why this guide prints no national figure for them.

Quick answer

A lease is the contract that fixes the rent, the term, the deposit and both sides' obligations for a set period — read the rent, term, deposit, fees, renewal and early-exit terms before you sign. How much a landlord may charge as a deposit, and how quickly it must be returned, are set by state law; there is no national figure. What federal law does give you: screening rights when a landlord uses a report about you (notice, a free copy within 60 days, the right to dispute errors), the FTC's scam test (any demand for a wire transfer, gift cards or cryptocurrency before you have seen the place means walk away), and fair housing protection on seven protected grounds — with a HUD complaint route to be used within one year.

SECTION 01The Lease: What It Is and What to Read First

A lease is the written rental agreement between you and the landlord: it names the home, the people renting it, the period you may live there, the rent and when it is due, the security deposit, and the rules and responsibilities on both sides. Signing it converts a conversation into obligations. Anything a landlord promises you — repairs before move-in, a parking space, a later move-in date — is only safe once written into the lease or a signed addendum. The sections below cover the parts where newcomers most often get hurt: the deposit, the application, and the listing itself.

Five terms deserve your slowest reading:

The rent and the rhythm. The monthly amount, the due date, how payment must be made, and any late fee. The lease records the legitimate payment method; Section 04 covers the FTC's payment advice.
The term and what happens at its end. Start and end dates, whether the lease renews automatically or rolls month-to-month, and what notice you must give to leave.
The security deposit and the other upfront money. The deposit amount, what it may be used for, and the conditions for getting it back — plus any application fee, holding amount or first month's rent, each labelled as itself. Never let them blur into one unexplained payment.
Repairs, utilities and entry. Who pays for which utilities, who you call for repairs, and the notice the landlord must give before entering.
Leaving early, guests and subletting. The cost of breaking the lease, restrictions on long-stay guests, and whether you may sublet.

SECTION 02The Security Deposit, at the Federal Level

A security deposit is money you hand the landlord at the start of the tenancy, held against what you might owe at the end — unpaid rent or damage beyond ordinary wear. This guide describes it at the federal level only, where its official sources operate.

Two federal facts are worth knowing before you negotiate one. First, what a landlord charges can be shaped by a report about you: the CFPB explains that many landlords use a tenant screening report to help decide whether to rent to you and how much to charge for your security deposit — so a quoted deposit is not always a fixed property price; for some landlords it is an output of your file. Second, if a screening report is used to require a larger deposit than other applicants — or a co-signer, or higher rent, or to deny you — federal law treats that as an adverse action with rights attached: notice, the reporting company's name, address and phone number, a free copy of the report if requested within 60 days, and the right to dispute inaccurate information; the reporting company generally has 30 days to investigate a dispute, though in some cases 45.

What this guide deliberately does not print is any national figure for the deposit — no cap expressed as months of rent, no national return deadline — because the federal sources used here do not set one. The maximum a landlord may charge, how the deposit must be held, and the deadline for returning it are set by the law of the state (and sometimes the city) where the home is. Articles that print a single "typical" range as national fact are printing other states' rules as if they were yours. Your lease should state the amount and the return conditions; Section 06 points to your state's rules.

The practical habits are simple preparation advice: pay the deposit only against a signed lease or written receipt naming it as a security deposit with its amount; keep the receipt and payment record for the whole tenancy; and photograph the home's condition, room by room, on move-in and move-out day — a deposit dispute is decided by evidence of condition, evidence only you can create at both ends.

SECTION 03The Application: Screening Reports and the Empty Credit File

Most applications trigger a background check you never see. The CFPB states that landlords use tenant screening reports to help make decisions on possible tenants; these reports may contain information from many sources, including your rental history and credit reports. A report may consist of any or all of: credit reports; rental history information, including any eviction actions and lawsuits; employment verification; criminal history; sex offender registries; the national terrorist watchlist; and a risk score or recommendation based on criteria selected by the landlord.

For a newcomer, the honest problem is visible in that list: every component is a United States record. A credit report, in the CFPB's words, states your credit activity and current credit situation, such as loan-paying history and the status of your credit accounts — and if you arrived last month, you have no U.S. credit activity for it to state. That does not make you risky; it makes your file thin — a paperwork gap, not a negative record. Ask early what a landlord will look at and what other evidence they will consider, before you pay any fee. The FTC adds a protective point for this stage: until you have agreed to rent a place, a landlord does not need your Social Security number, credit score or other sensitive information — and most landlords normally pull your credit score themselves.

If a screening report is used against you, the federal rights switch on. The CFPB states that a landlord is required by federal law to let you know: if a report was used to deny you housing; the contact information for the company that made the report; your right to dispute the information in it; and your right to a free copy if you request it within 60 days of the denial. The same notice duties apply to a larger deposit, higher rent or a co-signer requirement, and the notice may be written, oral or electronic. If you are denied, ask the landlord what information in the report was a problem, to see if you can explain the situation; request the report from the company used, check it for inaccurate or outdated information, and dispute any errors — inaccurate information can, in the CFPB's words, significantly interfere with your ability to find housing.

SECTION 04Rental-Listing Scams: The FTC's Playbook

The FTC describes rental scams as usually working one of two ways. In the first, scammers take over real listings: they copy the pictures, description or virtual tour, replace the agent's contact information with their own, and post the phony ads on a new site — so if you call or email about the rental, you reach a scammer. In the second, scammers create listings for places that are not for rent or do not exist. The fake ads might offer surprisingly low rent or amazing amenities; the fake owner will usually claim to be out of the country or give another excuse for not showing the property — then rush you into a quick decision. Scammers also post made-up listings in social media groups.

What the scammer takes comes in three forms. Money: the supposed application fee, deposit, first month's rent or vacation rental charge. Identity: a fake application asking for your Social Security number, a picture of your driver's licence, paystubs and other personal details — used to steal your identity. And enrolment: a demand to send screenshots of your credit scores to prove creditworthiness, when the real aim is enrolment in a paid credit-monitoring program with recurring fees. Once they have your money or information, they disappear.

The payment demand is the clearest single tell. The fake owner might say you can only secure the property with a wire transfer through Western Union or MoneyGram, gift cards, or cryptocurrency. The FTC's position is flat: if anyone insists you can only pay that way, it is a scam — and money sent by wire transfer, gift card or cryptocurrency is like cash; once gone, you probably cannot get it back. The honest counterpart: pay by credit card, which gives you the best protections; scammers want hard-to-recover methods — gift cards, wire transfers, payment apps such as Apple Pay, CashApp, PayPal and Zelle, or cryptocurrency.

The FTC's checks take minutes and catch most of it. Search online for the rental's address plus the name of the property owner or rental company: other ads for the same address under a different owner or company name are a sign of a scam. Search the owner or company name with "complaint," "review" or "scam." Consider the price — rent a lot cheaper than most rents in the area could be a scam sign. Look at the property before you sign or pay: visit in person, have a friend visit, or watch a virtual tour — knowing even this is not a guarantee, since scammers may set up a self-guided tour copied from a landlord who uses self-tour services. Verify who you are dealing with: ask the agent for a business card issued by the managing company and check the agent's ID against it; with a private landlord, check city or county tax assessment records for the owner, and compare the landlord's ID. If anyone pressures you to decide quickly, walk away; a home listed for sale instead of for rent is also a big red flag. Never give personal or financial information to anyone who contacts you claiming to work with the owner or rental company — use the contact information you already have.

If you spot a rental listing scam, report it to your local law enforcement agency and the website where the ad was posted, and to the FTC at ReportFraud.ftc.gov and your state attorney general.

SECTION 05Fair Housing: The Seven Protected Grounds and the Complaint Route

Above the state rules sits one federal rule for almost every rental. HUD states that housing discrimination is illegal in nearly all housing, including private housing, public housing and housing that receives federal funding, and that the Fair Housing Act protects people from discrimination when renting or buying a home, getting a mortgage, or seeking housing assistance. The Act prohibits discrimination in housing because of: race; color; national origin; religion; sex; familial status; and disability. The CFPB's renter-focused version of the same rule: your landlord cannot sexually harass you, refuse to rent to you, evict you, or set different rules for your agreement on those grounds — and if you or your landlord receive federal financial assistance for housing, age is protected too.

National origin is on that list, and it matters to this guide's readers specifically: being from another country is not a lawful reason to refuse you a home, charge you different terms, or steer you elsewhere. Fair housing law does not require a landlord to approve every applicant — lawful screening (Section 03) remains part of the process. The distinction matters: "refused because of what is in my file" (Sections 02 and 03) and "refused because of who I am" (this section) have two different remedies.

The remedy runs through HUD's Office of Fair Housing and Equal Opportunity (FHEO), and it has a deadline. Because there are time limits on when an allegation can be filed after an alleged violation, HUD advises reporting as soon as possible — and FHEO's process page states the limit plainly: you must file your allegation within one year of the last date of the alleged discrimination. You can report with FHEO online, call an intake specialist at 1-800-669-9777, or print the complaint form and mail it to your regional FHEO office. Anyone who has been or will be harmed by a discriminatory housing practice may file. FHEO investigates allegations, helps individuals obtain agreements to resolve them, and enforces the law; it may refer the matter to a state or local agency under its Fair Housing Assistance Program. Retaliation for making an allegation or reporting a discriminatory practice is illegal.

SECTION 06Your State, Your Rules: Where the Local Answers Live

Everything this guide has flagged as state law — deposit caps and return deadlines, notice rules, the evictions process, most day-to-day tenant rights — has to be read where you live; the federal sites used here hand you there rather than answering for the states. HUD maintains a page for every state, carrying a "local tenant rights, laws, and protections" section: the South Dakota page, for example, lists the state Attorney General's consumer handbook and the state's landlord-tenant law, plus the state consumer protection route for renter's rights information or complaints.

Two federal backstops remain wherever you live. For a landlord or debt collector using unfair or deceptive practices, the CFPB takes complaints from renters — submit online or call (855) 411-2372; for credit or consumer reporting problems, including a tenant screening report, the same site or (855) 411-CFPB (2372). For a listing scam, use Section 04's reporting list even when no money changed hands — the report is how the next listing gets caught.

FAQFrequently Asked Questions

How much can a landlord charge as a security deposit?

There is no national figure in the federal sources — the maximum, and the deadline for returning the deposit after you move out, are set by your state's law, and this guide prints no "typical" range because those ranges come from other states' rules. What federal law does say: a screening report can influence the deposit a landlord charges, and if a report is used to require a larger deposit than other applicants pay, you get an adverse-action notice, a free copy of the report if requested within 60 days, and the right to dispute errors.

A landlord wants a wire transfer or gift cards before I have seen the place. Is that normal?

No — the FTC treats it as a scam signature. If anyone insists you can only pay with wire transfers through Western Union or MoneyGram, gift cards or cryptocurrency, it is a scam, and money sent those ways is like cash: once gone, you probably cannot get it back. The same applies to anyone who pressures you to decide quickly, claims to be out of the country, or will not show the property. Do not pay for a property you have never seen; pay by credit card where you pay at all.

I have no U.S. credit history. Will every landlord refuse me?

A thin file is not the same as a bad file. Screening reports are built from U.S. records, so a new arrival may have little for one to show. The FTC's guardrail protects this stage: until you have agreed to rent a place, a landlord does not need your Social Security number, credit score or other sensitive information, and most landlords pull your credit score themselves. Ask what the landlord will look at and what else they will consider — and if a report is used against you, use your adverse-action rights to see and dispute it.

I think a landlord refused me because of where I am from. What do I do?

That is the Fair Housing Act's ground: discrimination because of national origin is prohibited, along with race, color, religion, sex, familial status and disability. Report it to HUD's FHEO — online, at 1-800-669-9777, or by mailing the complaint form to your regional FHEO office. Do not wait: you must file within one year of the last date of the alleged discrimination, and HUD advises reporting as soon as possible. Retaliation for making an allegation is illegal.

I already sent money to a listing that turned out to be fake. What now?

Report it on every route the FTC lists: your local law enforcement agency, the website where the ad was posted, the FTC at ReportFraud.ftc.gov, and your state attorney general. Be realistic about recovery: money sent by wire transfer, gift card or cryptocurrency is like cash — once gone, you probably cannot get it back. Report anyway — it is how listings get stopped — and treat any personal information you sent (a Social Security number, a licence photo, paystubs) as an identity-theft risk from the same day.

Editorial note: This AllVisaUpdates guide is general educational information about renting a first home in the United States. It is not legal advice: deposit limits, return deadlines and most tenant rights are set by your state's law, and discrimination questions are decided by HUD or a court on their facts. Rules are stated as the FTC, the CFPB and HUD published them on 31 October 2026. If you believe you have been discriminated against or scammed, use the reporting routes in Sections 04 and 05 promptly — two of them carry deadlines.

Official references and verification status

These official references were accessed and checked on 31 October 2026, and this guide's claims were verified claim-by-claim against them (record in the accompanying .sources.md file). Three honest limits. First, no CFPB lease explainer was found: the CFPB publishes renter material on screening reports, application denials and housing discrimination, but no page defining a lease or listing its key terms could be located on consumerfinance.gov in this check — so Section 01's description of a lease is plain descriptive text and its five terms are preparation advice, and every checkable claim there rests on the FTC and CFPB passages in the .sources.md file. Second, no national deposit figure is printed: the FTC and CFPB passages read describe the deposit's role and the screening rights around it, but neither sets a deposit cap or a return deadline, because those are state-law matters. Third, the FTC's published rental-scam loss totals were not printed: a number this guide could not read first-hand on an FTC page does not get printed, however widely it is quoted.

General educational information, not individualized legal or tenancy advice. Check your state's rules through HUD's page for your state, and consult a local tenant legal-aid service for your case.

General information only. This guide is based on official sources publicly available and checked on the date shown on this page. Visa rules change, and consular and USCIS officers decide every case on its own facts — nothing here is a confirmation or a guarantee for your individual case, and this is not legal advice. Always confirm the current requirement on the official page linked in this guide before you act, and consider a qualified immigration attorney for your specific situation.