The /etc/hosts file must be owned by root.
The /etc/hosts file (or equivalent) configures local host name to IP address mappings that typically take precedence over DNS resolution. If this file is maliciously modified, it could cause the failure or compromise of security functions requiring name resolution, which may include time synchronization, centralized authentication, and remote system logging.
How this relates to the STIG checklist: STIG vs SCAP benchmark.