@June104 Actually no they are not in most cases breaking the law. You need to read more about actual cases that have gone to the courts. There is a ton of information out there. An AirBnB, HomeAway or VRBO listing is exempt from the FHA rules.
The FHA makes it illegal to discriminate in the sale or rental, or otherwise make unavailable or deny a dwelling to a buyer or renter because of race, color, religion, sex, familial status, handicap, or national origin. 42 U.S.C. §3604(f).
The FHA defines a “dwelling” as:
Any building, structure, or portion thereof which is occupied as, or designed or intended for occupancy as, a residence by one or more families, and any vacant land which is offered for sale or lease for the construction or location thereon of any such building, structure, or portion thereof.
42 U.S.C.§3602(b).
Although the FHA expressly defines “dwelling,” that definition employs the term “residence,” which is not defined by the Act. Nevertheless, courts have had occasion to define the contours of the types of properties to which the FHA applies. In determining what constitutes a “dwelling” under the FHA, courts have found that “lodgings for transient guests” do not qualify and thus the FHA does not apply to same. As set forth in Germain v. M&T Bank Corp., 111 F. Supp. 3d 506 (S.D.N.Y. 2015), “[m]ost courts that have considered the scope of the term [residence] have relied on the definition used in United States v. Hughes Memorial Home, 396 F. Supp. 554 (W.D.Va. 1975), which is a ‘temporary or permanent dwelling place, abode or habitation to which one intends to return as distinguished from the place of temporary sojourn or transient visit.” Transient uses, more like hospitality accommodations — motels, inns, hotels — are not residences which qualify as dwellings under the FHA. Short term rentals fall under this category as they are also transient visits.