AI Frontier Institute

Prohibiting algorithmic rent setting

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Senate Bill No. 2983 (Massachusetts, 2025-2026 session) has not been enacted. The Housing committee reported it favorably on 2026-03-12 as a new draft of S994 and S1016, and it was referred to Senate Ways and Means. If enacted, it would add Section 15G to Chapter 186 of the General Laws to bar landlords from using algorithmic rent-setting tools. Subsection (b) would prohibit a lessor or landlord from employing, using or relying on an "algorithmic device" or "coordinator" when setting rent, setting rent changes at renewal, deciding what to charge a tenant, or determining occupancy levels. Under subsection (a), an "algorithmic device" is a machine-learning or AI-based process that uses nonpublic competitor data to advise on rent. It excludes periodic trade-association reports published no more often than monthly in aggregated, anonymous form, and tools used to set rent or income limits under affordable housing program guidelines. A "coordinator" is anyone who operates an algorithmic device, software or data analytics service that performs a "coordinating function." That function means collecting and analyzing rent, supply and lease-date data from two or more landlords and recommending rental prices, lease renewal terms or occupancy levels. Landlords who do this for their own benefit are included. Under subsection (c), a violation would count as a violation of section 2 of Chapter 93A, with a civil penalty of up to $5,000 per violation. Each time a rent is determined, increased or otherwise set would be a separate violation. Under subsection (d), a successful action would award costs, reasonable attorney fees, expert fees and investigation costs to plaintiffs, or to the attorney general or municipality when either one successfully enforces the law.

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