Effective March 1, 2026, owners and operators of residential rental properties in Minneapolis will be prohibited from using certain “algorithmic devices” to set rents or determine occupancy levels. The new ordinance targets the use of software that relies on non-public competitor data to recommend rental pricing or vacancy strategies.

Here are the top three things Minneapolis residential landlords need to know:

1. What qualifies as a prohibited “algorithmic device?”

The Minneapolis Code of Ordinances defines an “algorithmic device” as any device “that uses one or more algorithms to perform calculations of non-public competitor data concerning local or statewide rents or occupancy levels” to advise a residential property owner or operator as to vacancy rates and rent trends. As drafted, the ordinance appears to apply to residential dwelling units and does not extend to commercial leasing operations.

Importantly, the definition does not include:

  • Sources that publish or aggregate existing rental data without providing recommendations as to rents or occupancy levels; and
  • Products used to establish rent or income limits in accordance with affordable housing programs.

Landlords should carefully evaluate whether their pricing software merely aggregates public data or, instead, analyzes non-public competitor information to generate rent and occupancy recommendations.

2. The ban applies only to non-public competitor data.

The ordinance does not prohibit all algorithmic pricing tools. Rather, it prohibits the use of algorithmic devices that analyze or calculate “non-public competitor data.”

The ordinance defines non-public competitor data as information “that is not available to the general public,” including rent prices, occupancy rates, lease start and end dates, and similar data—regardless of whether the information is anonymized or specific to the Minneapolis market.

3. Tenants have a private right of action.

The ordinance grants residential tenants a private right of action against landlords who violate the ban on algorithmic devices. If a violation is established, tenants may recover compensatory damages as well as reasonable attorneys’ fees and costs.

While individual claims may be limited in value, a landlord’s exposure could increase significantly if multiple tenants bring claims. The prospect of attorneys’ fees and costs also increases litigation risk and potential exposure.

Bottom Line

Minneapolis residential landlords should conduct a prompt review of the tools and vendors they use to monitor occupancy levels and set rental pricing. If those tools rely on non-public competitor data to generate pricing or vacancy recommendations, adjustments may be necessary before March 1, 2026. Failure to ensure compliance could expose landlords to private litigation and significant aggregate liability.

Winthrop & Weinstine’s Real Estate and Commercial Litigation attorneys routinely advise landlords across Minnesota on the increasingly complex regulatory landscape governing residential and commercial leasing. For more information, feel free to connect with Peter, Elle, or your regular Winthrop contact.

February 17, 2026