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GOVERNOR SHERRILL SIGNS THE FORBIDDING THE ALGORITHMIC INFLATION OF RENT (FAIR) ACT INTO LAW TO PROTECT RENTERS FROM ALGORITHMIC RENT SETTING
By July 23, 2026 Posted in Landlord/Tenant Law Share
The Forbidding the Algorithmic Inflation of Rent (FAIR) Act, passed as Assembly Bill 3497 and Senate Bill 451, has recently been signed by Governor Mikie Sherill on July 20, 2026, and is scheduled to take effect on July 1, 2027.
Once in effect in summer 2027, the Act will begin setting restrictions on the use of algorithmic rent-setting practices within the residential housing market. Specifically, the Act’s purpose is to target the use of software and technology that can artificially inflate rental prices and obstruct market competition. The passing of the Fair Act comes as a direct response to the rise of prevalence of property management software platforms which organize and compile data from competing Landlords, such as nonpublic pricing and vacancy data, in order to coordinate rent pricing across the entire housing market, rather than each property having the freedom to set independent prices.
For landlords, the passage of the FAIR Act will mark an end to their ability to use software and services that analyze occupancy rates, housing supply level, lease termination dates, or competitor pricing from competing properties, while also restricting a landlord’s ability to feed private sensitive data into these various softwares’ shared algorithms. The FAIR Act also mandates that the New Jersey Attorney General establishes a complaint portal on the Department of Law and Public Safety’s website, accessible to tenants and individual renters for reporting suspected instances of “collusion via algorithm” conducted by Landlords and Property Owners.
From July 2027 and onwards, Landlords will have to be certain that any connection, use, or reliance on AI-powered platforms/online data pooling services such as RealPage be severed. Property managers must continue to set rents using market analysis done through their own research and knowledge, and not through the generated or comparative recommendations of a third-party service or software.
If you believe this new law could affect you and have questions or concerns, Griffin Alexander, P.C., can help. Our attorneys are experienced in all aspects of Community Association and Landlord-Tenant law. We can help ensure that your property remains in compliance with any and all laws and amendments.
The information in this Client Alert is provided solely for information purposes. It should not be construed as legal advice on any specific matter and is not intended to create an attorney-client relationship. The information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular circumstances. Each legal matter is unique, and prior results do not guarantee a similar outcome.