Ashtyn Asay 
Most New Jersey residents are no strangers to high rent prices. According to World Population Review, the Garden State ranked fifth in the nation for the highest rent costs in 2026, with an average price tag of just over $2,400 for just 869 square feet. Now, the state is taking action. On Monday, July 20th, Governor Mikie Sherrill signed the Forbidding the Algorithmic Inflation of Rent (FAIR) Act into law, making New Jersey the fourth state nationwide to regulate the use of algorithmic rent-setting software. The legislation, sponsored by Sen. Brian Stack and Senate Majority Leader M. Teresa Ruiz, is designed to prevent landlords from using technology to coordinate rental prices and artificially inflate housing costs. Continue reading to learn about the FAIR Act and how it works.
What Is the FAIR Act?
According to a press release from the State of New Jersey, the FAIR Act prohibits landlords from using algorithmic rent-setting systems that rely on shared market data to recommend rental prices or occupancy strategies. State officials said these programs can allow competing landlords to rely on the same pricing recommendations instead of competing with one another, leading to higher rents for tenants. The new law also requires the New Jersey Attorney General to create a complaints portal for alleged violations, which will be available on the Department of Law and Public Safety website.
“Housing affordability is one of the defining challenges facing New Jersey, and we’re using every tool available to bring costs down,” Governor Sherrill said in a press release. “Landlords, who should be competing to provide the best price to renters, are instead colluding to drive prices up through so-called ‘algorithmic pricing.’ That stops now.”
The FAIR Act is scheduled to go into effect on August 1st, 2027, giving landlords and software providers approximately a year to comply.
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Why Is New Jersey Regulating Rent-Setting Software?
The legislation comes after more than a year of increased scrutiny over algorithmic pricing software nationwide. Programs such as RealPage use rental market data, including lease prices, occupancy rates, and other information submitted by participating landlords, to generate recommendations on how much landlords should charge for rent.
A statement from New Jersey Senate Democrats cited a Washington Post analysis of RealPage, which found the site had at least 600 customers using its software to set prices for nearly 8% of rental units nationwide. Because competing property owners can rely on the same software recommendations, the programs reduce competition and contribute to higher housing costs, particularly in markets where affordable housing is already in short supply.
“Unethical rent-setting algorithms used by landlords are undermining competition and driving up housing costs for New Jersey families who are already struggling to afford groceries, fuel, and child care,” Senator Ruiz said in a press release. “In some cases, renters have been found to pay hundreds of dollars more each year because of artificial price markups. Banning this software will help level the playing field, protect consumers, and make housing more affordable.”
The FAIR Act builds on policies that first emerged at the local level. Hoboken adopted its own ordinance in July 2025 prohibiting landlords from using algorithmic rent-setting software for residential properties after concerns that some apartment buildings allegedly saw rent increases of 20% to 30% following the use of the technology. The ordinance followed similar legislation in Jersey City and reflected growing concerns among housing advocates that AI-driven pricing tools were contributing to New Jersey’s affordability crisis. With Governor Sherrill’s signature, those protections now extend statewide.
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