On Jul. 20, NJ LEG enacted bill protecting renters from algorithmic rent.
NJ LEG enacted Bill A 3497 (S 451), which prohibits coordination with residential rental property owners who restrict competition with respect to residential dwelling units.
Also, it was reported that Governor Sherrill signed the Forbidding the Algorithmic Inflation of Rent (FAIR) Act into law, which establishes protections for renters.
Bill Provision
Introduced in response to the ongoing affordable housing crisis, noting that median rent for a three-bedroom apartment increased by 35 percent between 2021 and 2024.
50% of renters are rent-burdened, spending more than 30% of their income on rent.
The FAIR Act regulates the use of algorithmic rent-setting systems to prevent landlords from using these algorithms to coordinate rental prices or occupancy levels.
The bill makes it unlawful for landlords to subscribe to or use a coordinator defined as any software, data analytics service, or entity that collects nonpublic information.
Uses algorithms to recommend rental prices, lease renewal terms, or occupancy levels.
Prohibits the rental property owners from engaging in parallel pricing coordination, meaning any tacit or express agreement to raise, manipulate, or fix rental prices.
The law also grants the renters clear avenues for reporting violations and seeking relief, empowering them to identify and challenge unlawful rent-setting practices.
Governor Sherrill framed signing as part of her broader affordability agenda, which includes increasing housing production, expanding affordable housing opportunities.
Advancing transit-oriented development, with FAIR Act representing another important step toward making New Jersey's rental market more fair, transparent, competitive.
Legislative History
On Jan. 13, 2026, bill introduced in House; on Jun. 30, 2026, bill was passed in House.
On Jun. 30, 2026, bill delivered to the Senate, and the bill was passed in the Senate.
On Jul. 20, bill was signed into law by the governor and assigned Chapter 43.
Effectiveness
The effective date is the first day of the fourth month following the date of enactment.
