If individuals occupy habitats in a way that maximizes their fitness, if th
ey are free to occupy the habitats they choose and if fitness declines with
population density, then their abundance across habitats should follow an
ideal free distribution. But, if individuals are genetically related? this
simple fitness-maximization mechanism breaks down. Habitat occupation shoul
d obey Hamilton's rule (natural selection favours traits causing a loss in
individual fitness as long as they result in an equal or greater gain in in
clusive fitness) and depends more on inclusive fitness than it does on indi
vidual fitness. We demonstrate that the resulting inclusive-fitness distrib
ution inflates the population density in habitats of poorer inherent qualit
y, creating pronounced source-sink dynamics. We also show that density-depe
ndent habitat selection among relatives reinforces behaviours such as group
defence and interspecific territoriality, and that it explains many anomal
ies in dispersal and foraging.