Algorithmic rent-setting is drawing increased attention from state lawmakers as concerns grow that software using landlords’ pricing and occupancy data may reduce competition in rental housing markets. Across the country, 47 bills were introduced in 20 states this session. New Jersey was the first state to enact a law addressing these practices, while proposals still pending in Massachusetts and Michigan would place additional limits on how landlords and software providers use competitor information.
New Jersey Enacts the FAIR Act
New Jersey AB 3497 became the Forbidding the Algorithmic Inflation of Rent (FAIR) Act when it was signed on July 20, 2026. The law is scheduled to take effect in July 2027. It addresses algorithmic systems that use nonpublic information from multiple rental property owners to set or recommend rents, lease terms, or occupancy levels. It contains:
- Restrictions on coordination: The law prohibits certain uses of algorithmic devices to facilitate parallel pricing coordination among rental property owners, including systems that rely on competitors’ nonpublic pricing or occupancy information.
- Covered information: Relevant data can include rental prices, supply levels, security deposits, occupancy targets, lease renewal dates, and other material lease terms.
- Defined exceptions: The law excludes certain activities, including some public rent estimates, research and statistical analysis not used to set current or future lease terms, and qualifying property-listing databases.
Proposals Still Pending in Massachusetts and Michigan
Massachusetts HB 5222 and SB 2983, both reported favorably by the Joint Housing Committee in March 2026, would address algorithmic rent fixing. As of October 19, both bills were referred to their respective Ways and Means committees. Michigan HB 4538 would prohibit landlords from using certain software to share nonpublic competitor data and set rent rates; it is currently pending in the House Communications and Technology Committee.
What to Watch
The proposals reflect a broader policy debate over where to draw the line between data-driven property management and pricing coordination that may undermine competition. Algorithmic tools can help landlords analyze market conditions, but lawmakers are examining whether the use of competitors’ nonpublic information creates risks under existing or proposed antitrust rules. The measures differ in scope and status, so property owners, managers, and software providers would need to review the applicable state law and monitor further legislative developments.
FOCUS will continue to monitor state legislation on algorithmic pricing and rental housing across the country.
by Elsa Nygard 10/19/26
