{"id":226065,"date":"2026-07-21T17:13:42","date_gmt":"2026-07-21T17:13:42","guid":{"rendered":"https:\/\/thelocalgirl.com\/newjersey\/?p=226065"},"modified":"2026-07-21T17:13:42","modified_gmt":"2026-07-21T17:13:42","slug":"new-jersey-fair-act-ai-rent-setting-ban","status":"publish","type":"post","link":"https:\/\/thelocalgirl.com\/newjersey\/new-jersey-fair-act-ai-rent-setting-ban\/","title":{"rendered":"New Jersey Just Banned AI-Driven Rent-Setting Software"},"content":{"rendered":"<div id=\"custom_featured_image\" style=\"display:none;\"><img fetchpriority=\"high\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/thelocalgirl.com\/newjersey\/wp-content\/uploads\/sites\/13\/2026\/07\/jersey-rent-ai-ban-300x200.png\" class=\"attachment-medium size-medium wp-post-image\" alt=\"\" style=\"margin-bottom: 15px;\" srcset=\"https:\/\/thelocalgirl.com\/newjersey\/wp-content\/uploads\/sites\/13\/2026\/07\/jersey-rent-ai-ban-300x200.png 300w, https:\/\/thelocalgirl.com\/newjersey\/wp-content\/uploads\/sites\/13\/2026\/07\/jersey-rent-ai-ban-768x511.png 768w, https:\/\/thelocalgirl.com\/newjersey\/wp-content\/uploads\/sites\/13\/2026\/07\/jersey-rent-ai-ban.png 1000w, https:\/\/thelocalgirl.com\/newjersey\/wp-content\/uploads\/sites\/13\/2026\/07\/jersey-rent-ai-ban-585x390.png 585w, https:\/\/thelocalgirl.com\/newjersey\/wp-content\/uploads\/sites\/13\/2026\/07\/jersey-rent-ai-ban-263x175.png 263w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/div><div id=\"custom_category\" style=\"display:none;\">news<\/div><p><span style=\"font-weight: 400;\">Most New Jersey residents are no strangers to high rent prices. According to <\/span><a href=\"https:\/\/worldpopulationreview.com\/state-rankings\/average-rent-by-state\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">World Population Review<\/span><\/a><span style=\"font-weight: 400;\">, 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 <a href=\"https:\/\/thelocalgirl.com\/newjersey\/new-jersey-own-country\/\" target=\"_blank\" rel=\"noopener\">algorithmic rent-setting software<\/a>. 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. <strong>Continue reading to learn about the FAIR Act and how it works.<\/strong><\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-226074 \" src=\"https:\/\/thelocalgirl.com\/newjersey\/wp-content\/uploads\/sites\/13\/2026\/07\/jersey-rent-ai-ban.png\" alt=\"\" width=\"451\" height=\"300\" srcset=\"https:\/\/thelocalgirl.com\/newjersey\/wp-content\/uploads\/sites\/13\/2026\/07\/jersey-rent-ai-ban.png 1000w, https:\/\/thelocalgirl.com\/newjersey\/wp-content\/uploads\/sites\/13\/2026\/07\/jersey-rent-ai-ban-300x200.png 300w, https:\/\/thelocalgirl.com\/newjersey\/wp-content\/uploads\/sites\/13\/2026\/07\/jersey-rent-ai-ban-768x511.png 768w, https:\/\/thelocalgirl.com\/newjersey\/wp-content\/uploads\/sites\/13\/2026\/07\/jersey-rent-ai-ban-585x390.png 585w, https:\/\/thelocalgirl.com\/newjersey\/wp-content\/uploads\/sites\/13\/2026\/07\/jersey-rent-ai-ban-263x175.png 263w\" sizes=\"(max-width: 451px) 100vw, 451px\" \/><\/p>\n<h3><b>What Is the FAIR Act?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">According to a <\/span><a href=\"https:\/\/www.nj.gov\/governor\/news\/2026\/approved\/20260720a.shtml\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">press release<\/span><\/a><span style=\"font-weight: 400;\"> 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 <\/span><a href=\"https:\/\/www.njoag.gov\/about\/department-of-law-and-public-safety\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Department of Law and Public Safety website<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cHousing affordability is one of the defining challenges facing New Jersey, and we\u2019re using every tool available to bring costs down,\u201d Governor Sherrill said in a press release. \u201cLandlords, who should be competing to provide the best price to renters, are instead colluding to drive prices up through so-called \u2018algorithmic pricing.\u2019 That stops now.\u201d&nbsp;&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The FAIR Act is scheduled to go into effect on August 1st, 2027, giving landlords and software providers approximately a year to comply.<\/span><\/p>\n<p style=\"text-align: center;\"><strong><em>Read More:&nbsp;<a href=\"https:\/\/www.hobokengirl.com\/jersey-city-ban-ai-data-center\/\" target=\"_blank\" rel=\"noopener\">Jersey City Moves to Ban New Data Centers on Industrial Land<\/a><\/em><\/strong><\/p>\n<h3><b>Why Is New Jersey Regulating Rent-Setting Software?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The legislation comes after more than a year of increased scrutiny over algorithmic pricing software nationwide. Programs such as <\/span><a href=\"https:\/\/www.realpage.com\/lp\/property-management-software-solution\/?qgad=781418957278&amp;qgterm=realpage&amp;utm_source=google&amp;utm_medium=cpc&amp;utm_campaign=SYN-Google-Branded-Search-LP-Test&amp;utm_adgroup=RealPage-Branded&amp;utm_device=c&amp;utm_keyword=realpage&amp;hstk_creative=781418957278&amp;hstk_campaign=23206433023&amp;hstk_network=googleAds&amp;gad_source=1&amp;gad_campaignid=23206433023&amp;gbraid=0AAAAADjjaiDludgAWACzsminvh6mZb8o0&amp;gclid=CjwKCAjwsfzSBhB5EiwAOGyqScnOjPjg_-UgNzBfHXD1EX216WN_ewK1rJKAS1TsUoeE1yDNQSrophoCQNwQAvD_BwE\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">RealPage<\/span><\/a><span style=\"font-weight: 400;\"> 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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A <\/span><a href=\"https:\/\/www.njsendems.org\/m\/newsflash\/home\/detail\/1428\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">statement from New Jersey Senate Democrats<\/span><\/a><span style=\"font-weight: 400;\"> cited a <\/span><i><span style=\"font-weight: 400;\">Washington Post <\/span><\/i><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cUnethical 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,\u201d Senator Ruiz said in a press release. \u201cIn 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.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The FAIR Act builds on policies that first emerged at the local level. <\/span><a href=\"https:\/\/www.hobokengirl.com\/hbooken-rent-setting-algorithm-prohibit\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Hoboken adopted its own ordinance in July 2025<\/span><\/a><span style=\"font-weight: 400;\"> 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 <\/span><a href=\"https:\/\/www.hobokengirl.com\/jersey-city-ai-software-rent-realpage-nj\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">followed similar legislation in Jersey City<\/span><\/a><span style=\"font-weight: 400;\"> and reflected growing concerns among housing advocates that AI-driven pricing tools were contributing to New Jersey&#8217;s affordability crisis. With Governor Sherrill&#8217;s signature, those protections now extend statewide.<\/span><\/p>\n<p style=\"text-align: center;\"><strong><em>See More:&nbsp;<a href=\"https:\/\/thelocalgirl.com\/newjersey\/new-jersey-summer-concerts-2026\/\">New Jersey Summer Concerts 2026: A Guide to Shows Across the State<\/a><\/em><\/strong><\/p>\n<p>Follow @thenewjerseygirl on&nbsp;<a class=\"broken_link\" href=\"https:\/\/www.instagram.com\/thelocalgirlhq\/?hl=en\" target=\"_blank\" rel=\"noopener\"><span class=\"s1\">Instagram<\/span><\/a>&nbsp;+&nbsp;<a href=\"https:\/\/www.tiktok.com\/@thelocalgirlhq?lang=en\" target=\"_blank\" rel=\"noopener\"><span class=\"s1\">TikTok<\/span><\/a>&nbsp;for the latest updates on Hoboken, Montclair, Bergen County, and more,&nbsp;<a href=\"https:\/\/thelocalgirl.myflodesk.com\/xdt5qdr3st\" target=\"_blank\" rel=\"noopener\"><span class=\"s1\">sign up for our weekly newsletter here<\/span><\/a>&nbsp;that shares everything you missed each week, and check out our&nbsp;<a href=\"https:\/\/thelocalgirl.com\/calendar\/\" target=\"_blank\" rel=\"noopener\"><span class=\"s1\">events calendar<\/span><\/a>, which has over 100+ events weekly to peruse.<\/p>\n<div class=\"categories\" style=\"text-align: center;\"><a class=\"button\" href=\"https:\/\/thelocalgirl.com\/news\/\" target=\"_blank\" rel=\"noopener\">News<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>newsMost New Jersey residents are no strangers to high rent prices. According to World Population Review, the Garden State ranked fifth in&hellip;<\/p>\n","protected":false},"author":453,"featured_media":226074,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[4,45,1,40],"tags":[9,43,11,12],"class_list":["post-226065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lifestyle","category-new-jersey","category-news","category-the-local-girl","tag-lifestyle","tag-new-jersey","tag-news","tag-tlg"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.6 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>New Jersey Just Banned AI-Driven Rent-Setting Software - The New Jersey Girl<\/title>\n<meta name=\"description\" content=\"New Jersey Governor Mikie Sherrill recently passed the FAIR Act, which will regulate the use of algorithmic rent-setting software in the state.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/thelocalgirl.com\/newjersey\/new-jersey-fair-act-ai-rent-setting-ban\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Jersey Just Banned AI-Driven Rent-Setting Software\" \/>\n<meta property=\"og:description\" content=\"New Jersey Governor Mikie Sherrill recently passed the FAIR Act, which will regulate the use of algorithmic rent-setting software in the state.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thelocalgirl.com\/newjersey\/new-jersey-fair-act-ai-rent-setting-ban\/\" \/>\n<meta property=\"og:site_name\" content=\"The New Jersey Girl\" \/>\n<meta property=\"article:published_time\" content=\"2026-07-21T17:13:42+00:00\" \/>\n<meta name=\"author\" content=\"Ashtyn Asay\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/thelocalgirl.com\/newjersey\/wp-content\/uploads\/sites\/13\/2026\/07\/jersey-rent-ai-ban.png\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ashtyn Asay\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/thelocalgirl.com\\\/newjersey\\\/new-jersey-fair-act-ai-rent-setting-ban\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thelocalgirl.com\\\/newjersey\\\/new-jersey-fair-act-ai-rent-setting-ban\\\/\"},\"author\":{\"name\":\"Ashtyn Asay\",\"@id\":\"https:\\\/\\\/thelocalgirl.com\\\/newjersey\\\/#\\\/schema\\\/person\\\/5f712dc85ab8d60ee14c66985544ee08\"},\"headline\":\"New Jersey Just Banned AI-Driven Rent-Setting Software\",\"datePublished\":\"2026-07-21T17:13:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/thelocalgirl.com\\\/newjersey\\\/new-jersey-fair-act-ai-rent-setting-ban\\\/\"},\"wordCount\":665,\"image\":{\"@id\":\"https:\\\/\\\/thelocalgirl.com\\\/newjersey\\\/new-jersey-fair-act-ai-rent-setting-ban\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/thelocalgirl.com\\\/newjersey\\\/wp-content\\\/uploads\\\/sites\\\/13\\\/2026\\\/07\\\/jersey-rent-ai-ban.png\",\"keywords\":[\"Lifestyle\",\"new jersey\",\"News\",\"The Local Girl\"],\"articleSection\":[\"Lifestyle\",\"New Jersey\",\"News\",\"The Local Girl\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/thelocalgirl.com\\\/newjersey\\\/new-jersey-fair-act-ai-rent-setting-ban\\\/\",\"url\":\"https:\\\/\\\/thelocalgirl.com\\\/newjersey\\\/new-jersey-fair-act-ai-rent-setting-ban\\\/\",\"name\":\"New Jersey Just Banned AI-Driven Rent-Setting Software - 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