The pressure campaign against RealPage began in 2022 after a ProPublica investigation alleged its AI-driven Revenue Management tool enabled landlords to move “in lockstep” on rent increases—calling it “a form of algorithmic price fixing”. Attorneys general launched lawsuits, tenants’ groups amplified the issue, and state actions multiplied. Nevada struck its own deal earlier this year, and more than two dozen landlords have already settled in related cases. The federal government’s settlement is the largest domino to fall, signaling what is almost certainly a new era of scrutiny for rent algorithms.

Under the DOJ agreement, RealPage will stop using nonpublic competitor data to shape daily rent recommendations, eliminate market surveys, place tighter limits on automated rent acceptance, and abandon hyperlocal modeling. New AI models can only be trained with data that is at least 12 months old. Enforcement will last seven years, with a court-appointed monitor overseeing compliance for at least three. RealPage did not admit wrongdoing, but these changes will affect how millions of apartments are priced nationwide.

For affordable housing operators, this settlement is a signal to review pricing practices and compliance strategies. Even if your properties are subject to regulatory rent caps, many mixed-income or LIHTC communities use revenue management tools for market-rate units, these tools may now require updates or alternative strategies. We think you can expect heightened attention from regulators and advocacy groups so it will be important to make sure your rent-setting process is transparent and well-documented. With rent growth cooling and concessions spreading, property managers have leaned on pricing software to maintain margins. The new restrictions may reduce those efficiencies, requiring stronger asset management and forecasting. States like California, Oregon, and cities like Seattle have already proposed or enacted bans on rent-setting algorithms, so we think it’s fair that other areas should anticipate similar measures and prepare for compliance.

Action Steps for Affordable Housing Operators

So, what can affordable housing property managers and operators do to prepare and ensure compliance? We suggest the following steps.

• Audit any pricing tools currently in use and confirm compliance with new restrictions.
• Document your rent-setting processes for transparency and regulatory readiness.
• Train your staff on updated policies and potential state-level bans on algorithmic pricing.
• Monitor any ongoing litigation and legislation that could affect revenue management practices.
• Prepare alternative strategies for market-rate units if algorithmic tools become limited.

As an affordable housing provider, this settlement should function as a chance to review best practices and ensure your company meets the litmus test. Lisa Richards, President of MBS Property Management, put it well when she said “As affordable housing property management professionals, our responsibility is in the best interest of the property, the owner, and the residents.  The DOJ ruling reinforces this and is ensuring rent determination practices should always be honest, completed with integrity, and grounded in fairness and transparency in how rents are set.  The settlement makes sense, and we hope that it will strengthen the trust our owners and residents place in us.”