NYC Affordability

Before June 11, 2025, NYC tenants routinely paid a broker fee (often 12-15% of annual rent) even when the landlord was the one who hired the broker to list the apartment. The FARE Act (Fairness in Apartment Rental Expenses) ended that: whoever hires the broker now pays them. A landlord-hired broker’s fee is a landlord cost; a tenant can still choose to hire their own broker and pay that broker directly. The real estate industry’s constitutional challenge has so far failed: in July 2026 the Second Circuit upheld the dismissal of REBNY’s First Amendment and preemption claims, leaving only a narrower claim about pre-existing listing contracts pending, and the law remains fully in effect.

Worked example

On a $3,000/month apartment listed by a landlord-hired broker, a tenant’s move-in cost before the FARE Act might have included a ~$5,400 broker fee (15% of $36,000 annual rent) on top of first month and security deposit. After the FARE Act, that fee doesn’t appear on the tenant’s side of the ledger at all. See the FARE Act guide for a full move-in cash breakdown, or model it directly on the Rent Calculator, which lets you toggle broker fee scenarios.