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More than 20 states have introduced, advanced or enacted legislation aimed at restricting the use of algorithmic rent-setting software as lawmakers scrutinize technology used by landlords to recommend apartment rents.
The latest state to act is New Jersey, where Governor Mikie Sherrill signed the Forbidding the Algorithmic Inflation of Rent (FAIR) Act into law on July 20, establishing additional protections for renters and explicitly regulating the use of algorithmic rent-setting practices that artificially inflate housing costs.
The issue gained national attention after federal regulators and lawmakers began examining software that can analyze rental market data and recommend pricing across large numbers of properties.
Several states have since proposed restrictions on the use of algorithmic pricing systems in housing, while New York became the first state to enact legislation specifically targeting algorithmic price-fixing in residential rental markets when Governor Kathy Hochul signed Senate Bill S7882 into law.
A review of state legislation found that, as of July 2026, lawmakers in 21 states have introduced, advanced or enacted bills targeting algorithmic rent-setting in residential housing.
What Is Algorithmic Rent-Setting?
Algorithmic rent-setting software uses information such as occupancy rates, leasing activity, comparable rents and market trends to recommend rental prices to landlords.
The technology has become a focus of policymakers because some programs can aggregate data from multiple properties and use that information to generate pricing recommendations.
In a June 2025 article, New York state Senator Brad Hoylman-Sigal and Assembly Member Linda Rosenthal said software that uses algorithms to analyze market data, and then recommends rents for landlords to charge prospective tenants, can contribute to unaffordable housing costs, writing: “It’s clear that these algorithms, while perhaps helping landlords make more money, are harming renters and significantly impacting their ability to afford their apartments.”
Alternatively, The National Apartment Association has previously argued that such tools help housing providers make “data-driven decisions” and reduce vacancies, which it says can promote housing choice and access for renters.
21 States Have Taken Legislative Action
Consumer Reports found lawmakers introduced or considered 51 algorithmic-pricing bills across 24 states in 2025, with a significant share focused on rental housing.
As of July 2026, Newsweek identified 21 states where lawmakers have specifically introduced, advanced or enacted legislation targeting algorithmic rent-setting in residential housing: Arizona, California, Colorado, Connecticut, Georgia, Hawaii, Illinois, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Rhode Island, Texas, Virginia and Washington.
The legislative push has accelerated as regulators and state attorneys general have increased scrutiny of rent-setting software. In 2025, a major landlord agreed to pay millions of dollars to settle claims brought by attorneys general from nine states over the use of algorithmic rent-setting technology.
The measures differ considerably. Some would prohibit landlords from using algorithmic devices to determine rents, while others target software that relies on nonpublic competitor data or performs pricing coordination functions between landlords. Not all of the proposals have succeeded. Colorado passed the legislature but was vetoed by Governor Jared Polis, while other proposals have stalled in committee or been held for further study. In Rhode Island, for example, lawmakers introduced Senate Bill S2266, which would prohibit landlords from using algorithmic pricing to determine residential rents, but the proposal was later held for further study by a Senate committee rather than advancing to enactment.
New York Has Gone Furthest
New York has moved further than any other state.
Senate Bill S7882 was signed by Governor Kathy Hochul in October 2025 after passing both chambers of the legislature. The law prohibits companies from facilitating agreements among residential property owners through software, data analytics services or algorithmic devices that perform coordinating functions between competing landlords.
The measure is widely viewed as the first state law specifically targeting algorithmic price-fixing in residential rental housing.
New Jersey’s FAIR Act Became the Latest State Law
Legislative activity has continued to expand in 2026. On July 20, New Jersey Governor Mikie Sherrill signed the Forbidding the Algorithmic Inflation of Rent (FAIR) Act into law, establishing new protections for renters and regulating the use of algorithmic rent-setting practices that state officials say can artificially inflate housing costs.
What’s Next?
While New York and New Jersey have enacted laws, other states remain at earlier stages of the legislative process.
Contact Newsweek editors on this story: Rebecca Flood and Gray R. Thomas
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