Rent controls or other local laws and ordinances are just that, Local, and you need to review the enabling authority for specifics.As a PM, I routinely run background checks on all applicants, and our policy is that not only will we not rent to someone with felony arrests, we will not rent to any violent offenders, drug offenders, sex offenders, GTA or petty thieves either!

The Fair Housing Act The Fair Housing Act (the Act) prohibits discrimination because of race, color, religion, sex, national origin, disability, and\ familial status in most housing related transactions.

Minimum credit score, minimum income, no evictions, no felonies in past 5 years, no sex offenses, 

He is listed as a low risk sex offender. 

The other two rooms/tenants would share the 2nd bathroom (where the washer/dryer is currently located - could be an issue).Co-ed or single sex?  

In the process of doing my research I found out one of the current tenants is a registered sex offender.  

The goal of the Fair Housing Act is to ensure “no person shall be subjected to discrimination because of race, color, religion, sex, handicap, familial status or national origin in the sale, rental or advertising of dwellings, in the provision of brokerage services, or in the availability of residential real-estate related transactions.†With respect to people with disabilities, the Act serves to: * Give people with disabilities opportunities to choose where they want to live; * Assure that reasonable accommodations and reasonable modifications are made so that a person with a disability can secure and use housing as fully as a person without a disability

There has been no mention of race, religion, national origin, sex, age or marital status.

I don't talk to people about politics, salary, sex, or religion because all of those topics piss people off.

As far as vetting an area, we like trulia's crime map.. also, just analyze the current rental markets, where there are A TON, is often a bad area... and check the sex offenders list, that shows a bad area where rental qualifications are low.