Governor Mikie Sherrill has signed the Forbidding the Algorithmic Inflation of Rent (FAIR) Act (FAIR Act) into law, making New Jersey just the fourth state in the nation to explicitly regulate the use of algorithmic rent-setting software.

The new law prohibits landlords from using pricing algorithms to coordinate rental rates or occupancy levels in ways that artificially inflate rents. State officials say the legislation is aimed at preventing large property owners from using software to effectively collude on pricing, helping to create a fairer and more competitive rental market.

“Housing affordability is one of the defining challenges facing New Jersey,” Governor Sherrill said. “Landlords, who should be competing to provide the best price to renters, are instead colluding to drive prices up through so-called algorithmic pricing. That stops now.”

Attorney General Jennifer Davenport said the law strengthens New Jersey’s efforts to combat anticompetitive practices in the housing market, while legislative leaders said it will help protect renters from unfair price increases driven by technology.

Supporters of the FAIR Act argue that algorithmic pricing software has contributed to rising rents in tight housing markets by allowing large landlords to rely on shared market data to maximize profits rather than compete on price.

The legislation is part of the Sherrill Administration’s broader affordability agenda, which also includes expanding housing production, increasing affordable housing opportunities, and promoting transit-oriented development across New Jersey.