How do rent increases work for market-rate rental properties in New York in 2026?

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The rules around rent increases in New York depend entirely on what type of rental property you have — market-rate, rent-stabilized, or Good Cause-covered.

Market-rate apartments (not rent-stabilized):

Before the Good Cause Eviction Law (2024):

No legal limit on rent increases for market-rate units
Landlords could raise rent to any amount upon lease renewal
The only restriction was proper notice (30–90 days depending on tenancy length)

After the Good Cause Eviction Law (fully in effect 2026):

For covered market-rate units, annual rent increases are capped at 5% or the local CPI, whichever is lower
A rent increase above this threshold gives the tenant legal grounds to challenge non-renewal in court
Properties exempt from Good Cause (new construction built after 2009, small owner-occupied buildings, units above the rent threshold) can still raise rent freely

Rent-stabilized apartments:

Annual increases are set by the NYC Rent Guidelines Board (RGB)
For lease renewals starting October 1, 2025 through September 30, 2026, the RGB-approved increases apply
Increases above the RGB guideline are illegal and can be challenged at the DHCR

Practical tips for landlords on rent increases:

Always give the legally required advance notice before implementing any rent increase
For covered properties, document your calculation of the CPI-based increase cap
Provide the increase amount in writing as part of the lease renewal offer
For rent-stabilized units, use the DHCR's official lease renewal form (RTP-8)

Practical tips for tenants on rent increases:

Ask your landlord whether your unit is covered by Good Cause protections
Check your address on the DHCR database to confirm whether it is rent-stabilized
A rent increase that exceeds legal limits can be challenged — contact a tenant rights organization or file a rent overcharge complaint with the DHCR