How Much Can a Landlord Increase Rent in New York?

New York City, known for its iconic skyline and vibrant culture, attracts people from all walks of life. It’s a city of neighborhoods, each with its own distinct charm and personality. From the bustling streets of Manhattan, where skyscrapers define the skyline, to the artistic, eclectic vibes of Brooklyn, and the more serene, suburban feel of Staten Island, NYC offers a range of living environments suited for all types of lifestyles. Amidst this diversity, affordable housing options are critical, especially for essential workers, teachers, healthcare professionals, and retail staff, who need to live close to their jobs.

Affordable housing in NYC often includes properties subsidized through federal or state programs. Landlords of these properties receive funding to keep rents manageable for low- to moderate-income residents. Programs such as rent stabilization, public housing, and U.S. Department of Housing and Urban Development (HUD) subsidies work to make housing more accessible and balance the high cost of living in the city.

Understanding how much a landlord can increase rent in New York is crucial, whether you live in a regulated or unregulated apartment. This blog delves into the rules governing rent increases in NYC, offering practical guidance for tenants navigating this complex landscape.

This blog provides valuable information about rent regulations, benefiting both tenants and landlords. For landlords and property managers seeking to understand the various rules and regulations regarding housing, we at Compliance Prime offer fair housing webinars led by industry experts. These webinars can help you effectively manage your property and foster positive relationships with your tenants. Be sure to check out our Fair Housing and Affordable Housing Webinar page, where you’ll find hundreds of informative webinars.

How Much Can Your Landlord Increase Rent in New York?

The amount by which your landlord can increase rent depends on the type of apartment you live in. Here’s a breakdown of what to expect based on the specific category your apartment falls under:

1. Rent-Stabilized Apartments
   
   • Rent-stabilized apartments are subject to annual rent adjustments determined by the New York City Rent Guidelines Board (RGB). For leases renewing between October 2024 and September 2025, the allowable rent increases are:
     
     • 2.75% for a one-year lease renewal
     • 3.20% for a two-year lease renewal
       
2. This ensures that rent increases remain moderate, providing stability for tenants living in these apartments. If your lease renews during this period, your rent will increase by these specified percentages.
   
3. Rent-Controlled Apartments
   
   • Rent-controlled apartments are rare but still provide some of the strongest protections. These units have a Maximum Base Rent (MBR), and rent can increase by up to 7.5% annually until the rent reaches the MBR. Rent-controlled units are often occupied by long-term tenants.
     
4. HUD-Subsidized Housing
   
   • In the case of HUD-subsidized housing, rents are usually based on tenant income or specific adjustments in HUD funding. Rent increases in these properties are tightly regulated to keep housing affordable for low-income families, seniors, and individuals with disabilities.
     
5. Unregulated Apartments
   
   • Landlords of unregulated apartments have more flexibility to set rents based on market conditions. However, if a landlord plans to increase the rent by more than 5%, they must provide written notice:
     
     • 30 days’ notice for tenants who have lived in the apartment for less than one year
     • 60 days’ notice for tenants who have lived there for one to two years
     • 90 days’ notice for tenants who have lived there for more than two years

Additional Factors Affecting Rent Increases

While the rent increase guidelines for each apartment type are fairly clear, certain factors may lead to additional hikes, particularly for rent-regulated and unregulated apartments:

1. Major Capital Improvements (MCIs): Landlords may apply for rent increases to cover building-wide renovations, such as roof repairs or upgrades to common areas. These increases are subject to approval by the Division of Housing and Community Renewal (DHCR).
2. Individual Apartment Improvements (IAIs): Landlords can also apply for rent increases based on significant improvements made to individual apartments, like new appliances or upgraded flooring. Again, this is subject to DHCR approval.

Authorities and Rules Governing Rent in NYC

Several entities play a key role in regulating rent increases in New York City:

• New York City Rent Guidelines Board (RGB): Determines annual rent increases for rent-stabilized apartments.
• Division of Housing and Community Renewal (DHCR): Manages complaints and oversees rent-regulated properties.
• U.S. Department of Housing and Urban Development (HUD): Regulates affordable housing programs, including rent increases for subsidized housing.
• Public Housing Authorities (PHAs): Administer public housing programs and Section 8 vouchers locally.

Conclusion

Rent increases in New York City vary based on the type of apartment you live in. For rent-stabilized apartments, the New York City Rent Guidelines Board sets specific caps, ensuring that increases are reasonable and predictable. Rent-controlled apartments are subject to even stricter limits, while unregulated apartments are subject to market conditions. HUD-subsidized housing offers protections for low-income residents, keeping rent increases in line with income or funding adjustments.

Navigating rent increases in NYC requires a good understanding of the housing regulations that apply to your apartment. By staying informed and utilizing resources like NYC Housing Connect or affordablehousing.com, tenants can ensure they are getting fair treatment and avoid unexpected rent hikes. Whether you are renewing a lease or looking for a new home, understanding the above mentioned rules and essential rental laws can help you avoid rental property violations, maintain stability in one of the most competitive housing markets in the world.