The Ames City Council is giving initial approval to a rental occupancy ordinance that determines how many people can live in single family homes and duplexes. The rules approved on first reading Tuesday replace a long-standing policy based on family relationships, which has been struck down by a new state law. Mayor Ann Campbell says the new ordinance is a compromise between renters, property owners, and neighborhoods. The rental occupancy ordinance will come up for a second and possibly third reading at the council's meeting next week.