The Big Picture
While federal scrutiny of algorithmic pricing software in the rental housing industry remains ongoing, state and local revenue management activity has largely slowed in 2026.
This type of legislation broadly aims to prohibit or deter housing providers from their otherwise lawful use of technologies that analyze data and influence decision-making related to pricing rents. In practice, technology helps housing providers make data-driven decisions and reduce vacancies, promoting greater housing choice and access for renters, and should be preserved.
State Spotlight
Policymakers are targeting the rental housing industry’s use of revenue management tools, often based on an incomplete understanding of how the technology works. Since state-level prefiling began in September 2025, the National Apartment Association (NAA) has tracked fifteen proposed state bills. Of those state bills, nine have failed, one has passed and five remain under consideration.
This year, New Jersey became the fourth state to adopt a policy on the use of algorithmic pricing software. Assembly Bill 3497, the "Forbidding the Algorithmic Inflation of Rent (FAIR) Act, " regulates the use of algorithmic rent-setting systems and allows for greater scrutiny by the state’s Attorney General through New Jersey’s antitrust laws, effective July 1, 2027. The FAIR Act also states that a municipality shall be prohibited from enacting an ordinance that conflicts with this act.
Local Updates
At the local level, NAA has tracked eight ordinances and one ballot measure that were proposed or became effective this year.
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In Montgomery County, Maryland, Ordinance 8-26 was on the agenda March 10, but is still awaiting a hearing in committee. This proposal would restrict the use of certain algorithmic pricing practices by housing providers and establish enforcement mechanisms for violations. The ordinance exempts aggregated market reports and certain affordable housing compliance tools, distinguishing them from software that recommends rents or other rental terms.
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Portland, Oregon’s ordinance went into effect on February 17, 2026. Ordinance 192122 would make it a violation for engaging in “price fixing” and the “use of any service, software, or system that engages in price fixing.”
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In West Hollywood, California, Ordinance 26-08 went into effect on June 3, 2026, roughly two months after it was first introduced. This law “prohibits the use, sale, and license of algorithmic rental price fixing.”
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Spokane, Washington passed Ordinance C36778 in late December and the ordinance went into effect on January 8, 2026. This ordinance restricts the use of certain algorithmic pricing services by housing providers while allowing the continued use of software for administrative and recordkeeping purposes.
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Minneapolis, Minnesota passed ordinance #2025-010 on March 27, 2025. The ordinance went into effect on March 1, 2026, and would prohibit housing providers from using certain algorithmic tools when setting rents or occupancy levels.
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Rockville, Maryland Mayor and City Council voted to adopt city code changes that would makes Rockville the first city in Maryland to ban certain algorithmic rental pricing practices. Code changes are set to take effect on January 1, 2027.
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Santa Ana, California passed an ordinance this February adopting restrictions on the use of certain technology-driven pricing tools in the rental housing market. The ordinance takes effect April 2, 2026.
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Evanston, Illinois adopted Ordinance 19-O-26, a measure aimed at restricting certain algorithmic pricing practices in rental housing. The ordinance includes enforcement provisions and allows tenants to pursue legal action for alleged violations. Ordinance became effective July 2026, 30 days after passage.
NAA’s Perspective
At present, five states and eighteen localities have this flawed policy on the books. State-level laws exist in California, Connecticut, Colorado, New Jersey and New York. Eighteen localities also adopted similar policies in California, Illinois, Maryland, Minnesota, New Jersey, Oregon, Pennsylvania, Rhode Island and Washington State.
Policymakers should recognize that revenue management tools are lawful business technologies that support efficient operations across numerous industries, including rental housing. These tools assist housing providers and directly benefit residents and communities by advancing optimization and modernization within the industry. NAA opposes laws that prohibit housing providers from using AI and other algorithm-driven tools to make business decisions. Innovation plays a crucial role in making operations more efficient and housing more affordable.
NAA appreciates the advocacy work of its state and local affiliate partners and will continue to support their priorities through initiatives like NAA's Housing Affordability Program (HAP). To learn more, see NAA’s Revenue Management Policy page.
NAA recommends consulting your local counsel if you have questions about how these laws impact your operations.
For more timely updates on the industry’s advocacy efforts and NAA’s analysis of state and local trends, register for our monthly Advocacy and Legal Webinar (ALW) series and tune in every third Wednesday of the month at 2 pm ET. This webinar is exclusively for NAA members and affiliate partners.