S 451 — Establishes "Forbidding the Algorithmic Inflation of Rent (FAIR) Act." *

S451 1R2R [First[Second Reprint] SENATE, No.

Senators McKnight, Mukherji, Wimberly, Cryan and McKeon         SYNOPSIS      MakesEstablishes use“Forbidding the Algorithmic Inflation of algorithmicRent systems(FAIR) toAct.” influence  priceCURRENT andVERSION supplyOF ofTEXT residential     rentalAs unitsamended unlawful.by the Senate on June 18, 2026.

    CURRENTAn VERSIONAct OFconcerning TEXT2[pricing     of] Asresidential2 reportedrental by2[properties] theproperty Senatepricing2 Community and Urbansupplementing AffairsP.L.1970, Committeec.73 on(C.56:9-1 Marchet 5,seq.). 2026, with amendments.

   An Act concerning pricing of rental properties and supplementing P.L.1970, c.73 (C.56:9-1 et seq.).

       1.   21.   This act shall be known and may be cited as the “Forbidding the Algorithmic Inflation of Rent (FAIR) Act.”2        2[1.] 2.2     The Legislature finds and declares that:

     c.     Recent national data indicates that landlords of residential rental housing use property management software to collude 1to restrain trade1 and raise residential rental housing prices, which may2[may havehave] has2 contributed to recent increases in the State.

     d.    Landlords engaging with the software supply real-time prices and additional lease information to companies managing the software, who proceed to use algorithms to fix rental prices.  As a result, competition decreases and typically2[typically]2 rental prices increase.       e.     A leading property management software company in the United States hinted at the outcome of using its software by stating on its website that it enables landlords to “outperform the market” by 1[two to five] up to seven1 percent, with a company executive publicly stating that the software could be responsible for rent increases of up to 14.5 percent.

     h.1  New Jersey recognizes housing as a basic human need and endeavors to expand access to affordable housing.         2.   2[2.] 3.2     As used in 1[this act] P.L.   2[P.L.    , c.    (C.          ) (pending before the Legislature as this bill)1:bill)1] this act2:

the federal section 8 Housing Choice programs,2[programs, authorized pursuant to Title 42 of the Code of Federal Regulations;Regulations] Voucher Homeownership Program, authorized pursuant to Subpart M of Part 982 of Title 24 of the Code of Federal Regulations (24 CFR 982.601 et seq.)2;

or other local, State 2,2 or federal government housing program.1      “Coordinating2"Algorithmic function”device" means:means a device that uses one or more algorithms to process or otherwise perform calculations of data, including but not limited to, data concerning rental prices, material lease terms, or occupancy levels.

    An (1)algorithmic collectingdevice historicaldoes ornot contemporaneousinclude: prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two or more rental property owners;

     (2) analyzing or processing of the information described in paragraph (1) of this definition through use of a system,spreadsheet software,that 1algorithm,1(a) oroperates 1otherwithout automated1artificial processintelligence thatand uses(b) computation,requires includinghuman byanalysis usingto theprocess informationor tootherwise trainperform ancalculations algorithm;of data;

andor     (2) (3)a recommendingdatabase rentalthat prices,only leaseuses renewalan terms,algorithm orto idealquery occupancyunprocessed levelsdata tostored aon rentalor propertywithin owner.that database.

     “Coordinator”“Competitively meanssensitive anyinformation” personmeans whononpublic operatesinformation aincluding, softwarebut ornot datalimited analyticsto, serviceprices, thatsupply performslevels, asecurity coordinatingdeposits, functionideal foroccupancy anylevels, rentallease propertycontract owner,termination, includingrenewal adates rental property owner performing a coordinating function for their own benefit.  1“Coordinator” shall not include a government entity that sets or limits rents or sale prices of residential propertydwelling throughunits, affordability controls in accordance with law.1      “Person” means, unless the context otherwise requires, any natural person or persons, or any corporation,other partnership,material company,lease trust,terms.2 or     association“Coordinating offunction” persons.means:

     “Residential (1) collecting 2[historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling unit”units meansfrom anytwo house,or apartment,more accessoryrental unit,property owners] the competitively sensitive information of two or othermore unitrental intendedproperty toowners befor usedthe aspurpose aof primaryanalyzing residenceor inprocessing information through the State. use “Residentialof dwellingan unit”algorithm shallor notother includeautomated inpatientprocess, medicalincluding care,by licensedusing long-termthe care,information to train an algorithm, where the algorithm or detentionother automated process is used to set or correctionalrecommend facilities.rental prices, material lease terms, or occupancy levels2;

       3.   (2) It2[analyzing shallor beprocessing unlawfulof andthe ainformation violationdescribed in paragraph (1) of thethis “Newdefinition Jerseythrough Antitrustuse Act,”of P.L.1970,a c.73system, (C.56:9-1software, et1algorithm,1 seq.)or for:1other automated1 process that uses computation, including by using the information to train an algorithm;

    and] a.    setting a rental propertyprices, owner,material lease terms, or anyoccupancy agent,levels representative,pursuant orto subcontractoran thereof,underlying toalgorithm subscribeor to,other contractautomated with,process that analyzes or otherwiseprocesses exchangecompetitively anysensitive forminformation of considerationany inother returnrental forproperty theowner, useincluding ofby servicesusing ofthat acompetitively coordinator;sensitive information to train an algorithm;

oror2      b.   (3) a2[recommending coordinatorrental toprices, facilitatelease anrenewal agreementterms, amongor rentalideal propertyoccupancy ownerslevels thatto restrictsa competitionrental withproperty respectowner] tosetting residentialfor dwellingor units,recommending includingto bytwo performingor amore coordinatingrental function.property owners:

    rental     prices, 4.   material Thislease actterms, shallor takeoccupancy effectlevels onpursuant to the firstsame dayor ofa thesubstantially fourthsimilar monthunderlying nextalgorithm followingor theother dateautomated ofprocess, enactment.that facilitates parallel pricing coordination.

     “Coordinating function” shall not include the following:

     (1)   providing, using, or collecting competitively sensitive information solely for the purpose of conducting research, statistical analysis, or testing, where the competitively sensitive information is not used in setting or recommending rental prices, material lease terms, fees, occupancy rates or levels, or other contract terms for current or future leases;

     (2)   developing an estimated amount of rent that is made available to the public at no cost;

     (3)   the use of a real estate brokerage database that is available on equal terms to subscribers that lists properties for rent or sale but does not:

     (a) set or recommend rental prices, material lease terms, or occupancy rates or levels;

or      (b) collect competitively sensitive information to set or recommend rental prices, material lease terms, or occupancy rates or levels;

or      (4)   a government entity setting or limiting rents or sale prices of residential property through affordability controls in accordance with the law2.

     “Coordinator” means any person who operates 2[a software or data analytics service] algorithmic revenue management software or an algorithmic device2 that performs a coordinating function for any rental property owner, including a rental property owner performing a coordinating function for their own benefit.  1“Coordinator” shall not include a government entity that sets or limits rents or sale prices of residential property through affordability controls in accordance with law.1      2“Nonpublic information” means information that is not available to the public at no cost.

In instances where the information is combined with public information, all combined information shall be deemed nonpublic information.2      “Person” means, unless the context 2[otherwise]2 requires 2otherwise2, any natural person or persons, or any corporation, partnership, company, trust, or association of persons.

     2“Parallel pricing coordination” means a tacit or express agreement between two or more rental property owners to raise, change, maintain, or manipulate pricing for the leasing of reasonably interchangeable residential dwelling units, unless required to do so in accordance with affordability controls.

This includes agreements between a coordinator and multiple property owners.

     Rental property owner” means a person that owns, directly or indirectly, one or more rental residential dwelling units.  Any person that holds a controlling interest in an entity that owns a rental residential dwelling unit shall be deemed to constitute a single rental property owner with that entity.2      “Residential dwelling unit” means any house, apartment, accessory unit, or other unit intended to be used as a primary residence in the State.  “Residential dwelling unit” shall not include inpatient medical care, licensed long-term care, or detention or correctional facilities.

     2“Tacit agreement” means mutual consent demonstrated without verbal or written communication.  Mutual consent may, but need not, be demonstrated by a pattern of conduct.2        2[3.] 4.2     It shall be unlawful and a violation of the “New Jersey Antitrust Act,” P.L.1970, c.73 (C.56:9-1 et seq.) for:

     a.     a rental property owner, or any agent, representative, or subcontractor thereof, to 2receive,2 subscribe to, contract 2[with] for2, or otherwise exchange any form of consideration in return for the use of 2, the2 services of a coordinator;

2[or]2      b.    a coordinator to facilitate 2[an] a tacit or express2 agreement among rental property owners that restricts competition with respect to residential dwelling units, including by performing a coordinating function 2;

     c.     two or more persons to engage in or otherwise facilitate parallel pricing coordination;

     d.    any agent or representative of a coordinator or subcontractor thereof to engage in parallel pricing coordination;

or      e.     any person to perform a coordinating function2.

       25.   The provisions of this act shall not be construed in any manner that limits the application of sections 6 through 17 of P.L.1970, c.73 (C.56:9-6 through 9-17) to a violation of section 4 of this act.2        26.   a.  This act shall not authorize or permit any conduct already unlawful pursuant to the “New Jersey Antitrust Act,” P.L.1970, c.73 (C.56:9-1 et seq.), or any other law, and shall be construed as in addition to that act.

     b.    A municipality shall be prohibited from enacting an ordinance that conflicts with this act.  This subsection shall not be construed to prohibit the enactment of ordinances explicitly authorized or required by any other law.2        27.   The Attorney General shall establish, on the official website of the Department of Law and Public Safety, a location to receive complaints alleging any violation or suspected violation of this act, which requirement may be satisfied by establishing or maintaining such a location for complaints alleging violations or suspected violations of the “New Jersey Antitrust Act” P.L.1970, c.73 (C.56:9-1 et seq.).2        28.   The Attorney General may, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), adopt any rules and regulations to effectuate the purposes of this act.2        2[4.] 9.2     This act shall take effect on the first day of the 2[fourth] twelfth2 month next following the date of enactment.