For leases beginning October 1, 2025 through September 30, 2026, the NYC Rent Guidelines Board has approved the following increases for rent-stabilized apartments:
3% increase for one-year lease renewals
4.5% increase for two-year lease renewals
These rates apply to approximately one million rent-stabilized apartments in New York City. The Rent Guidelines Board sets these limits annually after public hearings and consideration of both tenant and landlord concerns, as well as economic factors such as inflation and maintenance costs.
Rent-Controlled Apartments:
Rent-controlled units are subject to a different system (Maximum Base Rent), with increases determined every two years by the Division of Housing and Community Renewal. The rent increase is typically the lower of the average of the five most recent Rent Guidelines Board annual increases or 7.5%.
Free-Market (Unregulated) Apartments:
For apartments not under rent regulation, there is no cap on rent increases. However, landlords must follow New York State’s notice requirements if raising rent by 5% or more:
30 days’ notice for tenants in place less than 1 year
60 days’ notice for tenants in place 1–2 years
90 days’ notice for tenants in place 2 years or more.
Notice Requirements:
Landlords must provide written notice for any rent increase of 5% or more, with the notice period based on the length of the tenancy as described above.
Other Key Points:
Major Capital Improvements (MCI) and Individual Apartment Improvements (IAI): Landlords can apply for additional rent increases if they make qualifying improvements, but these are regulated and must be approved by the state.
Local Variations: Some municipalities outside NYC, like Nyack, have adopted rent stabilization under the Emergency Tenant Protection Act (ETPA) for certain buildings, with similar protections and annual rent increase limits.
No Increase During Lease: Landlords cannot raise rent during the term of a fixed lease, only at renewal or for new leases.
NYC Rent Increase Caps for 2025 Leases
| Lease Type | 2025-2026 Increase Allowed |
|---|---|
| 1-year (stabilized) | 3% |
| 2-year (stabilized) | 4.5% |
| Free-market | No cap, but notice required for >5% increase |
Tenant Protections:
If you believe your rent increase exceeds legal limits or proper notice was not given, you can file a complaint with the NY State Division of Housing and Community Renewal (DHCR).
Always request written documentation of any rent increase and keep records of all communications with your landlord.
For most NYC tenants in rent-stabilized apartments, expect a 3% increase for one-year renewals and 4.5% for two-year renewals starting October 1, 2025. Free-market tenants have no increase cap, but must receive advance notice for large hikes. Check your lease and building status to determine which rules apply to you.
Sources
[1] https://www.cbsnews.com/newyork/news/nyc-rent-guidelines-board-vote/
[2] https://abc7ny.com/post/nyc-apartment-rent-hikes-board-approves-three-percent-increase-one-year-four-and-half-percent-two-year/16889921/
[3] https://nypost.com/2025/06/30/us-news/nycs-rent-guidelines-board-approves-hike-for-rent-stabilized-apartments-by-up-to-4-5/
[4] https://rentguidelinesboard.cityofnewyork.us/2025-26-apartment-loft-order-57/
[5] https://comptroller.nyc.gov/newsroom/statement-from-new-york-city-comptroller-lander-on-rent-increase/
