Property managers are navigating what industry professionals describe as a period of heightened legislative and regulatory activity. Nearly half of states have some form of source-of-income protection, and 152 cities and counties have adopted their own ordinances. The year ahead will keep property managers busy as well, with expanded tenant protections and growing scrutiny of screening algorithms under consideration.
Ryan Huffman, CPM, 2026 secretary/treasurer of IREM (Institute of Real Estate Management) and director of property management for Hunt Midwest, urges property managers to closely monitor developments at all levels of government.
"At the federal level, we're watching legislation tied to fair housing enforcement, tax policy tied to real estate investment and overall programs that support housing supply," Huffman says. "At the state and local level, you've got issues like rent regulation, fee restrictions, eviction process changes and source-of-income protections."
Source-of-Income Protections Spread
Among the most pressing issues are expanded source-of-income protections, which prohibit landlords from rejecting applicants based on how they pay rent, such as vouchers or public assistance. While long established in some jurisdictions, they are spreading.
"It's being looked at by many more municipalities than in the past," Huffman says.
For property managers operating across multiple cities and states, that patchwork creates compliance challenges, making it essential to monitor city council and state legislature activity closely.
Fair Housing Compliance After HUD Guidance Changes
In late 2025, HUD rescinded three major criminal-screening guidance documents that had limited owners' use of criminal history in housing decisions. The new directive encourages owners of HUD-assisted housing to fully exercise their screening authority to maintain safety.
But Huffman cautions that the underlying Fair Housing Act—unlike guidance, it can't be rescinded— remains intact.
"Property managers should continue to use individualized assessments where appropriate," he says, adding that screening criteria must be applied consistently and tied to legitimate business needs like safety and property protection.
Federal Proposals Could Reshape Operations
Three federal proposals are worth watching, Huffman notes:
- Landlord Accountable Act of 2025: Prohibits source-of-income discrimination nationwide.
- End Rent Fixing Act of 2025: Targets the use of algorithmic pricing in rental housing.
- Housing for All Act of 2025: Directs federal housing finance proceeds toward state revolving loan funds supporting middle-income development to address the 4.7 million-unit housing shortage.
Regulators are also paying close attention to AI use in screening, advertising and pricing. In 2025, the Department of Justice reached a proposed settlement with RealPage, restricting its rent-setting software from using competitors' nonpublic data in pricing recommendations. Huffman urges managers to maintain human oversight of key decisions and audit vendor tools regularly.
The volume of sensitive resident and applicant data handled by property management firms also makes cybersecurity a priority.
"Data is a high-level item for our industry," Huffman says. "You have to store it securely and make sure your vendor partners are doing the same." He advises collecting only necessary information, vetting vendors carefully, and maintaining robust incident response plans.
To stay ahead, operators must monitor legislation closely, review policies proactively and build relationships with regulators before changes take effect.
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