FTC Launches Rulemaking To Crack Down On Hidden Rental Housing Fees

On March 12, 2026, the FTC issued an Advance Notice of Proposed Rulemaking (ANPRM) seeking public comment on whether federal rules are needed to prohibit unfair or deceptive fee practices in the rental housing market. The comment period is open for 30 days following Federal Register publication.

THE FTC TURNS ITS SIGHTS ON RENTAL HOUSING FEES

The Federal Trade Commission has long used its authority under Section 5 of the FTC Act to target unfair or deceptive acts or practices, but the agency has traditionally focused its consumer protection work on financial services, advertising, and technology sectors. That is changing.

On March 12, 2026, the FTC announced an ANPRM targeting fee practices in the rental housing market. The ANPRM is published in the Federal Register and opens a 30-day public comment window. Critically, this is not the first time the FTC has acted in this space. The agency has already won two landmark enforcement actions against major housing companies:

• Invitation Homes (2024): The nation's largest single-family home rental provider agreed to pay $48 million to settle FTC allegations that it concealed mandatory monthly fees from advertised rent prices.
• Greystar Real Estate Partners (2025): The largest residential property manager in the country was ordered to reform its fee disclosure practices and pay $23 million in consumer redress following a joint FTC/Colorado action alleging misrepresentation of the true cost of renting.

The FTC is now asking whether case-by-case enforcement is sufficient, or whether a sector-wide rule is needed to systematically address what it characterizes as pervasive hidden-fee practices that inflate the true cost of housing and undermine price competition.

WHAT THE FTC IS SEEKING: SIX CORE AREAS OF INQUIRY

The ANPRM covers the full lifecycle of a rental transaction, from application through moveout, and invites comment on six categories of potentially harmful practices:

• Total Rent Disclosure. Whether providers advertise a rental price that excludes mandatory fees, making the true all-in cost of housing unclear or misleading to prospective tenants.
• Fee Transparency. Whether the nature, amount, refundability, and recurrence of all fees and charges are clearly and conspicuously disclosed.
• Application Fees. Specific practices around application fees that may cause consumer harm, including fees charged for denied applications or duplicative processing.
• Security Deposits. Potentially harmful practices related to the collection, retention, or itemization of security deposits at move-out.
• Billing Practices. Whether billing processes, including late fees, utility pass-through charges, and automated payment structures, create confusion or harm.
• Consumer Choice. Whether certain fee structures or contract terms impede a tenant's ability to make free and informed choices.

If a rule is ultimately adopted, the FTC would be authorized to seek civil monetary penalties against violators and to obtain consumer redress more efficiently than through case-by-case litigation.

WHY THIS MATTERS

The FTC's ANPRM reflects a broader regulatory theme that has accelerated across federal agencies in recent years: price transparency and fee disclosure are consumer protection issues, not merely marketing choices.

For the rental housing industry specifically, the implications are significant:

• Property Management Companies that list units through third-party platforms or their own websites may face new obligations around how total costs are presented, including whether online listings must display an "all-in" price upfront.
• Landlords and REITs operating at scale, particularly those managing single-family or multifamily portfolios, are clearly in the FTC's sights based on prior enforcement patterns.
• PropTech Platforms that aggregate listings, process applications, or facilitate lease execution could face scrutiny if their systems enable or facilitate non-compliant disclosures by landlords.
• Technology Vendors providing AI-powered pricing tools, revenue management software, or dynamic rent platforms should evaluate whether their products could contribute to pricing opacity.

The FTC's language signals an intent to move from targeted enforcement to structural reform. An ANPRM is an early step, but the notice-and-comment process creates a formal record that shapes the final rule. Industry has both an opportunity and an obligation to engage.

NEXT STEPS FOR BUSINESSES

Businesses that would be impacted by a rule governing rental housing fee practices should consider filing comments to inform the FTC's regulatory approach and provide practical perspectives on fee practices. The thirty (30) day comment period will open when the ANPRM is published in the Federal Register.

Businesses can also take the following proactive steps to:

• Audit Fee Disclosure Practices. Review all advertising, listing platforms, application materials, lease agreements, and billing statements. Ask whether a prospective tenant could determine the true total cost of renting from the materials provided.
• Assess Application and Security Deposit Policies. Evaluate whether your practices around application fees, denial refunds, and deposit accounting are consistent with existing FTC Act requirements and state laws — and flag any areas that could invite scrutiny.
• Evaluate Technology and AI Risk. If your business uses AI-driven revenue management, automated pricing, or third-party listing tools, assess whether those systems create transparency risks in light of the FTC's stated concerns.

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