Iowa Senate File 2106 Prohibits Algorithmic Residential Rent-Fixing and Establishes Civil Penalties

Original title: A bill for an act relating to residential rental property price fixing, and providing civil penalties.

Last action · January 28, 2026: Subcommittee: Driscoll, Petersen, and Webster. S.J. 159 .Sponsors: Art Staed and 4 others

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What This Bill Would Do

Senate File 2106 prohibits landlords and algorithmic rent-setting software providers from coordinating rent prices using shared . The bill authorizes the attorney general, local prosecutors, and harmed tenants to file civil lawsuits seeking penalties of up to $5,000 per rental unit per month, injunctive relief, and restitution.

Why it matters

Landlords owning five or more properties and rental software companies face potential liability and civil penalties up to $5,000 per unit monthly for using automated tools that coordinate pricing, while tenants gain the right to sue for damages and restitution.

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

Landlords

Landlords controlling five or more properties are prohibited from using certain pricing software and must retain rent-setting records for five years.

Directly affected

Providers of algorithmic rent-setting systems

Software providers are barred from incorporating nonpublic competitor data into rent-setting tools and face potential civil liability.

Directly affected

Tenants

Tenants gain the right to file civil lawsuits for damages, restitution, and injunctive relief if harmed by price-fixing practices.

Key Facts

A landlord is defined as any person that owns, leases, subleases, or otherwise controls five or more residential rental properties in the state, or manages them on behalf of another.
An algorithmic rent-setting system is defined as software or artificial intelligence used by a landlord to set or adjust rent or occupancy levels based on nonpublic competitor data without independent human review.
Landlords and algorithmic software providers are prohibited from engaging in price fixing, stabilizing, raising, or maintaining rent levels through shared nonpublic data.
The attorney general, county attorneys, or city attorneys may bring civil actions for violations, requesting civil penalties of up to $5,000 per rental unit per month.

Show all 7 facts

Tenants harmed by a violation may bring a civil action for injunctive relief, damages, and reasonable attorney fees within two years of the violation.
Landlords and software providers must retain records concerning rent-setting algorithms, data sources, decisions, and human oversight for five years.
An affirmative defense is available if the landlord or software provider set rents independently, did not rely on nonpublic data coordination, and conducted due diligence.

Frequently Asked Questions

Who qualifies as a landlord under this bill?

A landlord is defined as any person that owns, leases, subleases, or otherwise controls five or more residential rental properties in the state, or manages or operates them on behalf of another person.

What penalties can landlords face for using illegal pricing algorithms?

Courts may order civil penalties of up to $5,000 per rental unit per month for each month a violation continues, injunctive relief, restitution to affected tenants, and attorney fees.

Can individual tenants sue landlords under this legislation?

Yes, a tenant harmed by a violation may bring a civil action to obtain injunctive relief, damages, and reasonable attorney fees.

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Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

2 actions

Jan 28, 2026Senate
Subcommittee: Driscoll, Petersen, and Webster. S.J. 159 .
Jan 26, 2026SenateIntroduced
Introduced, referred to Commerce. S.J. 139 .

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

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