A provision in New Jersey's new rent-pricing law makes it illegal for any landlord—even those with a single unit—to use algorithmic revenue management software.
Most New Jersey property owners don't realize that a bill signed into law this year contains a provision that directly restricts how they can price rent. The Forbidding the Algorithmic Inflation of Rent (FAIR) Act, known as A3497, includes a requirement that may surprise landlords of all sizes: using algorithmic rent-pricing software is now prohibited under New Jersey law.
Under Section 4(a) of A3497, any rental property owner who subscribes to or pays for algorithmic revenue management software—referred to in the bill as a "coordinator"—commits a per se violation of the New Jersey Antitrust Act. This applies to landlords of any size, including those who own just a single rental unit.
The consequences are real. Violations expose property owners to civil enforcement action by the New Jersey Attorney General, private lawsuits from tenants or other parties, and antitrust penalties. Unlike some regulatory violations that require proof of intent or harm, a per se violation means the act itself is considered illegal—no additional evidence of wrongdoing is required.
This provision applies broadly. Whether you manage a small apartment building, own a single-family rental, or operate a larger portfolio, if you use software that algorithmically determines or recommends rental prices, you are subject to this law. This includes revenue management platforms, dynamic pricing tools, and similar software that uses data and algorithms to set or adjust rent.
Landlords who currently subscribe to such services need to take action. Compliance requires identifying any algorithmic pricing software you use and terminating the subscription.
The bill was adopted on June 8, 2026, and reported on June 23, 2026. According to Section 9 of the legislation, the law becomes effective on the first day of the twelfth month following enactment. Property owners should plan their compliance accordingly and review their current software subscriptions now.
Review any rent-setting tools or software your business currently uses. If you subscribe to algorithmic pricing or revenue management software, document the service and plan to discontinue it before the effective date. This includes platforms marketed as dynamic pricing, yield management, or algorithmic rent optimization.
If you use standard property management software that includes basic reporting or analysis features but does not algorithmically determine rent prices, that is generally not affected by this provision. The focus is on software specifically designed to algorithmically set or recommend rental rates.
Consider consulting with legal counsel if you are uncertain whether a tool you use falls under this definition, or if you have questions about compliance timelines.
Source: New Jersey A3497, Forbidding the Algorithmic Inflation of Rent (FAIR) Act, adopted June 8, 2026; Section 4(a); Section 9 (effective date).