Are there restrictions on renting to large families? Smart?

[Steve Borodin]

Hey everyone, I could use a little advice from the community on a rental property I currently have listed. I can probably guess which direction most of the advice will go, but I am definitely a bit torn on this particular situation.

The property is a 3 bed/2.5 bath SFR in an A class neighborhood. I listed the property for rent and had a viewing and subsequent application to rent the next day at full asking price, providing a 30% buffer over PITI obligations to account for all expenses.

It turns out, the family is relocating temporarily because the mother has been diagnosed with stage 4 cancer, and they are undergoing clinical trials in the area. In speaking with the applicants, both are very well spoken and friendly, and came prepared with an extensive list of references, including past landlords.

The biggest issue I’ve run into is they have 6 children. I only have a 3 bedroom house to rent including the master, about 1988 square feet in the entire house. And to compound the crowdedness, both of their mothers were planning to alternate long-term visits to understandably help out while she undergoes treatment.

I’ve tried searching maximum occupancy standards for the state of NJ, and I’ve found lots of conflicting information, but I’m sure a family of 8+ has got to be pushing it.

To compound the situation, they have a poor credit history from mistakes when they were younger, which have since improved. Since they are relocating, the father will be between jobs until he moves up as well. Their children are all adopted, so they get a guaranteed $3500 subsidy each month to support them. Combined with the father’s current job, they clearly meet the 3x rule for income, but he will obviously need to seek out a comparable job in this area, until then, only guaranteed income is the adoption subsidy.

I realize from a strictly analytical standpoint this seems like a very risky chance to take. However it’s not always as cut and dry when you’re dealing with real people. Obviously I would love to help them out in a tough time, and with the lease I would cover all of my expenses and then some. From unofficial vetting (social media) they have a very strong support system and solid references, but it’s very difficult to ignore the elephants in the room.

Also, if I were to deny their application because of maximum occupancy, could that be considered discrimination against having children? Any and all inputs would be greatly appreciated for this situation. Thanks!