Is it legal for landlords to rent to a certain race?

I've been renting a room for 3 months in an apartment building. By the way the landlord is Chinese and able to speak some English. I signed a written 12 months lease but due to circumstances I had to move out early. The landlord also pointed out that she'd return my security deposit unless I find her a new... show more I've been renting a room for 3 months in an apartment building. By the way the landlord is Chinese and able to speak some English. I signed a written 12 months lease but due to circumstances I had to move out early. The landlord also pointed out that she'd return my security deposit unless I find her a new tenant to cover the monthly rent Otherwise I will get one month penalty rent for breaking the lease. Ok, I agree then she gave me all the info and requirements for the search to be more specific she wanted a Chinese female. I posted an ad on craigslist and received several calls but none of them fell into the specific category. Now, I'm thinking if i'm not able to find a tenant on time then i can forget the security deposit since I'll get penalized.

So it is legal or discrimination of what the landlord is doing?
Update: So if don't find a tenant can the landlord keep my security deposit to cover the penalty?
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