Guide State guides

Where is RUBS limited or not allowed?

By MeterEase · Updated October 16, 2026

Some states limit or do not allow formula billing (RUBS) for some utilities or property types. Others name RUBS in a statute and allow it with conditions. The tables below summarize what the sources we have read say. Each row links to a full state guide, and every rule links to its source at the bottom.

States where the sources limit formula billing

State	What the sources say
Connecticut	The Connecticut Supreme Court held in 2024 that Conn. Gen. Stat. § 16-262e(c) does not allow a landlord to use RUBS to recoup master-metered utility costs from tenants; building estimated utility costs into rent was treated differently. Public Act 26-113 makes a lease provision unenforceable if it has the tenant pay for utilities billed to the tenant when no separate meter measures the unit’s exclusive use (rental agreements entered into or renewed on or after October 1, 2026).
Delaware	Consumption-based utilities generally need a separate meter before they are billed separately (systems in use before July 17, 1996 excepted). Charges not based on consumption may be apportioned if the rental agreement provides for it (25 Del. C. § 5312).
North Carolina	For apartment complexes and manufactured home parks, the Utilities Commission says water charges are based on each tenant’s metered use, and RUBS is not allowed unless the Commission authorizes it.
Minnesota	In shared-metered buildings, apportioning electricity is prohibited. Water and sewer are split by the number of tenants on each lease and gas by square footage, with fee caps (Minn. Stat. § 504B.216).
Massachusetts	Separate water and sewer charges go through submeters that meet the state’s equipment, fixture, lease and certification requirements (M.G.L. c. 186, § 22).
New York	Residential electric submetering needs Public Service Commission authorization (16 NYCRR § 96.2). We did not find a statewide rule on splitting water by formula.
District of Columbia	RUBS is allowed, but from January 1, 2027 housing providers may not separately charge tenants for common-space or vacant-unit utilities (D.C. Code § 42-3505.11).
Texas	Water allocation rules cover apartment houses; the PUC’s reference sheet says duplexes, triplexes and buildings with four or fewer interconnected units do not qualify and points to an “all bills paid” approach.

States that name RUBS and allow it with conditions

State	What the sources say
Arizona	Allows RUBS for gas, water, wastewater, solid waste and electricity, lists methods, limits fees to actual administrative costs, and calls for 90 days’ notice to existing tenants (A.R.S. § 33-1314.01).
Virginia	Defines RUBS for water, sewer, electric, oil and gas, with methods agreed in the lease and limits on fees and late charges (Va. Code § 55.1-1212).
Maryland	Defines RUBS and requires written disclosures before the lease, including the last two bills (Real Property § 8-212.4).
Colorado	Allows RUBS if tenants are not billed more than the utility charged, with no markup and no common-area costs, and the method is disclosed (HB26-1013).

Cities and utilities can add their own rules

A state rule is only part of the picture. Seattle, for example, regulates billing tenants for master-metered utilities in its municipal code (see the Washington guide), and some utilities set their own terms for shared meters. Rules also change: Connecticut’s and Colorado’s changed in 2026. Read the source before you rely on a summary.

Where formula billing isn’t an option

Include utilities in rent. Predictable for tenants. See utilities included in rent.
Separate meters. Each unit gets its own account with the utility, where the utility allows it.
Submeters. Bill measured use where the state’s rules allow. See how to submeter a duplex.

States not listed here are in our state guides when we have a primary source for them.

Run this split every month without the spreadsheet

MeterEase reads the master bill PDF, applies your method and vacancy rule, and emails each tenant their share with the source bill attached, after you check the numbers, unless you turn on auto-send for a property. Plans start at $14/month.

Questions

Is RUBS illegal in some states?

Some states limit or do not allow formula billing for some utilities or property types. Connecticut’s Supreme Court held in 2024 that § 16-262e(c) does not allow a landlord to use RUBS to recoup master-metered utility costs, and Minnesota prohibits apportioning electricity. Others allow RUBS with conditions. This is general information, not legal advice.

Which states expressly allow RUBS?

Among the states we cover, Arizona, Virginia, Maryland, Colorado and the District of Columbia have statutes that name ratio utility billing and set conditions, and Texas sets allowed water allocation formulas for apartment houses.

What if my state is not listed?

We only list rules we can tie to an official or primary source. If your state is not here, it may have no statewide rule, or we have not covered it yet. Check your lease, city ordinances and your utility’s rules.

What can a landlord do where RUBS is not allowed?

Common options are including utilities in rent, separate meters, or submeters where the state’s rules allow billing by measured use.

Related guides

Sources

Example numbers on this page are made up to show the math. This guide is general information, not legal advice; rules differ by state, city and utility.