Can he sue for any punitive damages if we were to move out only 3 months into a year lease?

I recently rented an apartment duplex. I live in the upstairs half. My landlord lives in the lower half. After about 2 months, I couldn't help but notice an ugly side of my landlord. I thought the confederate flag he had hanging up was simply a symbol of southern pride but when he yelled at two small black children who were approaching the house to play with my children "Get your black asses off my property!" I knew there was going to be a problem. Worse yet, my son called his sister a nigger, apparently thinking it was some playground insult when asked where he heard it. He said the landlord told him to pull up his pants because he looked like "some stupid nigger." Last weekend he had a cookout where he invited several acquaintances, and all throughout, all I heard from them was nigger this and white power this, Aryan that and on and on. I have two children that do not need to be exposed to this kind of vile filth (nor do I need to hear it right in my own home out of the mouths of my own children!), and frankly, if it means giving up my security deposit, he can keep it.