Montgomery County committee backs ban on algorithmic rent pricing

A Montgomery County Council committee has unanimously recommended the passage of Bill 8-26, which seeks to prohibit the use of certain algorithms to establish rents or rental terms. The legislation, introduced by Councilmember Will Jawando, also aims to prevent price coordination involving rental housing to address affordability concerns.

The proposal follows legal scrutiny of rent-setting software, including a lawsuit by the Maryland Attorney General against RealPage and several landlords over allegations of unlawful rent increases. While the County’s Office of Legislative Oversight noted that research on the economic impact of these algorithms is limited and enforcement may present challenges, the committee amended the bill to align it with similar legislation recently adopted by the City of Rockville. The full County Council is expected to vote on the measure later this fall.