FTC Junk Fee Rules for Rental Housing: What the Greystar Order and 2026 Rulemaking Mean for Apartment Operators

What federal law requires of apartment operators today

No federal rental fee regulation exists yet, but Section 5 of the FTC Act, which bans unfair or deceptive practices, already applies. The FTC's March 2026 notice says: "Unfair and deceptive rental housing fee practices violate Federal law" (ANPRM, Section II.B).

• The application fee is the hook. In Invitation Homes and Greystar the FTC also alleged Gramm-Leach-Bliley Act violations; in Greystar, a misleading low rent induced prospects to give card or bank details for a nonrefundable application fee. The ANPRM says those violations may carry civil penalties of up to $53,088 each (ANPRM).
• Software is in scope. On December 9, 2025 the FTC warned 13 property management software providers that limiting managers' ability to show accurate total prices may break the law, and told them to review "software or coding that controls the flow of information to internet listing sites" (FTC).

The Greystar FTC settlement: what was alleged and what was ordered

Chairman Andrew Ferguson's concurring statement, quoted in the ANPRM, says the problem "is not limited to Greystar, and today's order will not fully resolve this problem."

The order as an operator spec for websites, ILS listings and application flows

The order does not bind you, but it shows the terms the FTC negotiated. Each one as a live-page test:

Drift between surfaces is the usual failure: across 6,000 properties and 1.6 million units Brynson analysed, although 97% of listings had been updated within the previous 90 days, conflicting mandatory fees, missing amenities and contradictory terms persisted (the listing accuracy report). To run these tests property by property, use the fee transparency compliance checklist.

The FTC rental housing fee rule timeline and docket

The ANPRM is the first Section 18 step. If the Commission proceeds, the statute requires a notice of proposed rulemaking with the rule text, a written comment period and an opportunity for an informal hearing before any final rule (15 U.S.C. 57a(b)).

Seven fee practices the FTC rental ANPRM puts on the table

Each item names the practice, the ANPRM question that targets it, and the operator check that answers it.

1. 01

   Advertised rent that leaves out mandatory recurring fees

   Question 58a asks whether total rent must include mandatory recurring fees such as administration, common area maintenance, estimated utilities and parking. Check: every fee charged to all residents sits inside the advertised number.

2. 02

   Base rent shown bigger than the total

   Question 59 asks whether the total must be more prominent than any other price, the Greystar term. Check: on every pricing card and ILS rent field, the total is the first or largest figure.

3. 03

   Fees explained only after consent to pay

   Question 60 asks whether the nature, purpose and amount of any fee left out of advertised rent must be disclosed before a renter consents to pay. Check: the itemized fee list appears before the first payment field.

4. 04

   One-time fees collected before the full picture

   The ANPRM names application, screening, approval and holding fees, and Question 66 asks whether all mandatory fees must be disclosed before any of them is charged. Check: a prospect sees total monthly price and move-in costs without paying anything.

5. 05

   Utility charges and RUBS left out of the total

   Questions 27 to 29 ask whether estimated utilities, including ratio utility billing (RUBS), can be included in total rent, and how common utility billing fees are. Check: you can state an estimate and its basis for each bill-back property.

6. 06

   Fees for things the landlord must provide anyway

   The ANPRM lists billing for goods or services providers are legally obligated to provide as a practice under review, and commenters cited pest fees and fees to maintain the furnace. Check: counsel reviews each fee's stated purpose against that state's habitability duties.

7. 07

   Software that cannot show a total

   Questions 22 and 23 ask how PMS, listing services and rental platforms limit total-rent advertising. Check: confirm in writing that your PMS, website platform and ILS feeds carry mandatory fees into the displayed price.

Does the FTC junk fee rule apply to apartments?

No. The FTC's existing Rule on Unfair or Deceptive Fees, 16 CFR part 464, covers only live-event tickets and short-term lodging, defined as "temporary sleeping accommodations at a hotel, motel, inn, short-term rental, vacation rental, or other place of lodging" (16 CFR 464.1). The rental ANPRM says the Commission chose "to proceed incrementally and not include rental housing", and Question 55 asks whether to write a new rental rule or amend part 464 to cover rental housing.

Two cautions. Ask counsel about furnished units marketed by the night, since the rule names short-term rentals. And no rule does not mean no standard: Greystar and Invitation Homes were brought without one.

State follow-on: the Arizona Greystar settlements

On May 13, 2026, Arizona Attorney General Kris Mayes announced settlements with Greystar. A general settlement adopts the injunctive terms negotiated in the FTC and Colorado case, with an anticipated $1.5 million of the federal $23 million in restitution going to Arizona consumers. Two more settlements, under the Arizona Consumer Fraud Act, resolve junk fees at The Julia Apartments in Mesa and Avana Gilbert in Gilbert, such as parking, valet trash and HOA dues, with a combined $100,000 for consumer restitution (Arizona AG).

State laws are tracked in rental junk fee laws by state; what penalties cost in practice is in the cost of multifamily non-compliance.

What could come next, and why waiting is the wrong plan

Two outcomes are open: a proposed rule, or no rule and continued case-by-case enforcement. The questions in the list above (Q58a, Q59, Q60, Q66) track the Greystar terms closely, so a proposed rule would likely extend them to everyone.

Either way, the order spec is the safest build target: it is what the FTC has enforced, and it is what the ANPRM asks about. The open questions are at the edges: one-time fees (Q58b asks whether to amortize them or show a total move-in cost), utilities and RUBS (Q27) and government charges (Q62).

How to align with the Greystar order spec before any rule

A one-property pilot, then roll out. Most of the time goes into reconciling the fee schedule.

Time needed: 4 hours

1. 1

   Export the fee schedule

   Pull every fee for the property from the PMS and mark each one mandatory, optional or conditional. Mandatory means every resident pays it.

2. 2

   Calculate the total monthly leasing price

   Add base rent and every mandatory recurring fee for each floor plan. Record the figure and the date.

3. 3

   Check prominence on every surface

   On the website, each ILS listing and the application flow, confirm the total is the first or largest price shown. Note any surface that shows base rent alone.

4. 4

   Check pre-payment disclosure

   Walk the application flow as a prospect and confirm the amount, purpose and mandatory status of each fee appear before any payment field.

5. 5

   Fix at the source

   Correct fees in the PMS and feed settings rather than on one page, so the fix reaches every ILS on the next sync.

6. 6

   Keep dated evidence

   Capture each surface before and after the fix with a date, so you can show what renters saw if a regulator or AG asks.

Frequently asked questions