Rockville Becomes First Maryland City to Ban Algorithmic Rent Pricing – Mocofeed

Ban is Centerpiece of Two-Year Rewrite of City’s Rental Housing Code

The Mayor and Council in July voted unanimously to adopt a comprehensive update to city code that makes Rockville the first city in Maryland to ban algorithmic rent pricing, prohibiting residential landlords from using rent-setting software and shared competitor data to set rents. 

The changes to Chapter 18 of Rockville City Code, titled Rental Facilities and Landlord-Tenant Relations, take effect Friday, Jan. 1. 

The ban is set out in a new section of the code, Section 18-148, Price Coordination and Algorithmic Devices. Under that section, a residential landlord may not use an “algorithmic device” to set rent, fees or other rental terms for a dwelling unit in the city. 

The section defines an algorithmic device as a product or service that uses algorithms, draws on nonpublic competitor data from two or more landlords, and recommends rents, fees, terms or occupancy levels. 

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As part of the ban, landlords also may not coordinate prices with other landlords, agree not to compete on rent or terms, or subscribe to or pay for algorithmic pricing or price-coordination services. 

The new code exempts aggregated and anonymous monthly rental reports and tools used to set rent or income limits under a government affordable housing program. Landlords who own only one rental unit in the city are also exempt. 

The broader rewrite modernizes the city’s rental housing law. It was built around several goals: providing clarity on existing code, aligning Rockville’s rules with those of surrounding jurisdictions and Maryland state law, improving housing stability and opportunities for tenant agency, requiring greater transparency for tenants, and incorporating local and national best practices. Along with the algorithmic pricing ban, the new code: 

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• Limits and clarifies fees landlords may charge tenants, including new restrictions on payment-processing and administrative fees. 
• Expands relocation assistance for tenants displaced by code violations or unfit housing conditions. 
• Increases transparency requirements around lease terms, utility costs and mandatory fees. 
• Strengthens the enforcement tools available to the city, consistent with Maryland law. 

Housing is one of the Mayor and Council’s five focus areas. The code update followed more than a year of public work sessions, beginning in 2024 and continuing through 2026, focused on rental transparency, licensing and inspections, fees, tenant protections, and algorithmic rent pricing. 

In coming months, city staff will create educational resources so that landlords and tenants fully understand their rights and responsibilities, as well as services the city provides. 

For more information and to see project materials, visit engagerockville.com/landlord-tenant-code-rewrite. Direct questions about the revised code to the City of Rockville Landlord-Tenant Affairs Program at latinfo@rockvillemd.gov. 

Read the original article at rockville