AI Regulation Tracker / Passed both houses

New Jersey Passes FAIR Act to Ban Algorithmic Rent-Setting, Sends It to Governor Sherrill

Regulatory summary: On June 30, 2026, the New Jersey Legislature passed both houses (Senate 33-4; Assembly 57-22) and sent the FAIR Act (A3497/S451) to Governor Mikie Sherrill. The bill would make it unlawful for landlords to use algorithmic rent-setting software, bar "coordinators" from running a "coordinating function" that analyzes competitors' nonpublic pricing.

Both chambers of New Jersey's Legislature approved the Forbidding the Algorithmic Inflation of Rent Act on June 30, 2026, targeting RealPage-style pricing software. The bill now sits on the Governor's desk, not yet enacted.

Primary source

By Anthony Guerriero, Founder, The Leveraged Years · Reviewed by The Leveraged Years Editorial Desk · Published July 9, 2026 · Last updated July 9, 2026

New Jersey Passes FAIR Act to Ban Algorithmic Rent-Setting, Sends It to Governor Sherrill regulation briefing

The Leveraged Years AI Regulation Tracker

Key takeaways

New Jersey moved from having no algorithm-specific rent statute to passing a dedicated bill through both chambers. The measure defines algorithmic rent coordination as a distinct unlawful practice rather than leaving it to case-by-case antitrust litigation.
Multifamily owners and operators, property managers, revenue-management and pricing-software vendors (the "coordinators"), brokers advising landlords on rent-setting, and antitrust and real-estate counsel who must now advise on statutory exposure in addition to Sherman Act theories.
Status: Passed the Senate 33-4 and the Assembly 57-22 on June 30, 2026.
Inventory every rent-setting or revenue-management tool in your New Jersey portfolio, document its data inputs, and ask vendors in writing whether their models train on or ingest competitors' nonpublic pricing. Brief counsel now so you can move fast if Sherrill signs.

Regulatory Briefing

Bindingness: Bill passed both houses, sent to Governor, not yet enacted. It carries no legal force unless and until Governor Sherrill signs it (or it becomes law without signature). Treat it as a near-term compliance signal, not a current obligation.
Scope: Residential rental property pricing in New Jersey. The bill supplements the State's existing antitrust statute and reaches landlords, third-party "coordinators" who supply algorithmic revenue-management software, and any person performing a "coordinating function."
What Changed: New Jersey moved from having no algorithm-specific rent statute to passing a dedicated bill through both chambers. The measure defines algorithmic rent coordination as a distinct unlawful practice rather than leaving it to case-by-case antitrust litigation.
Who This Affects: Multifamily owners and operators, property managers, revenue-management and pricing-software vendors (the "coordinators"), brokers advising landlords on rent-setting, and antitrust and real-estate counsel who must now advise on statutory exposure in addition to Sherman Act theories.
Current Status: Passed the Senate 33-4 and the Assembly 57-22 on June 30, 2026. Transmitted to Governor Mikie Sherrill. Awaiting the Governor's action. Not signed, not enacted.
Effective Date: Not yet in force. No effective date applies until the bill is signed into law; any operative dates would run from enactment.
Primary Source: https://pub.njleg.gov/Bills/2026/A3500/3497_R1a.HTM
Secondary Analysis: Coverage from The Jersey Vindicator and the Assembly Democrats confirms the June 30 votes, the transmittal to Governor Sherrill, and the housing-cost context. This tracks the national RealPage algorithmic-rent enforcement wave now reaching the East Coast.
Workflow Impact: Any pricing workflow that feeds nonpublic competitor data (occupancy, effective rents, concessions, lease terms) into a shared algorithm becomes the risk center. Owners relying on third-party revenue-management platforms need to know exactly what inputs those platforms use and whether outputs constitute a "recommendation" under the bill's definitions.
Operational Next Step: Inventory every rent-setting or revenue-management tool in your New Jersey portfolio, document its data inputs, and ask vendors in writing whether their models train on or ingest competitors' nonpublic pricing. Brief counsel now so you can move fast if Sherrill signs.
Last Verified: July 9, 2026

Date	Jurisdiction	Rule	Affected professionals	Status or effective date
2026-07-09	United States	New Jersey moved from having no algorithm-specific rent statute to passing a dedicated bill through both chambers. The measure defines algorithmic rent coordination as a distinct unlawful practice rather than leaving it to case-by-case antitrust litigation.	Multifamily owners and operators, property managers, revenue-management and pricing-software vendors (the "coordinators"), brokers advising landlords on rent-setting, and antitrust and real-estate counsel who must now advise on statutory exposure in addition to Sherman Act theories.	Passed the Senate 33-4 and the Assembly 57-22 on June 30, 2026. Transmitted to Governor Mikie Sherrill. Awaiting the Governor's action. Not signed, not enacted.

Frequently Asked Questions

Is the FAIR Act now law in New Jersey?

No. It passed both houses on June 30, 2026 (Senate 33-4; Assembly 57-22) and was sent to Governor Mikie Sherrill. It is not signed and not enacted, so it carries no legal force today.

What exactly does the bill ban?

It would make it unlawful for landlords to use a "coordinator's" algorithmic rent-setting software, bar anyone from performing a "coordinating function" that pools competitors' nonpublic pricing data, and prohibit "parallel pricing coordination," meaning a tacit or express agreement between owners to raise or manipulate pricing.

Does it ban all pricing software?

The text targets software that performs a coordinating function using competitively sensitive information from two or more owners, or that trains on competitors' pricing data. Tools that rely only on a landlord's own data are not the described target, but owners should confirm inputs with vendors rather than assume.

How would the state enforce it?

The bill directs the Attorney General to build an online complaint system on the Department of Law and Public Safety website where tenants can report suspected violations. It also supplements New Jersey's existing antitrust law.

How is this different from the RealPage cases?

The RealPage actions pursue algorithmic rent coordination through antitrust litigation that must prove agreement and effect. The FAIR Act writes the prohibited conduct directly into statute with specific definitions, which can make enforcement more direct if the bill becomes law.