CURRENT GUIDELINE
2026–27 Cycle: 0% / 0%
One-year and two-year renewal leases · Last updated July 13, 2026
Each year, the NYC Rent Guidelines Board (RGB) sets the maximum rent increase for rent-stabilized apartments, lofts, and hotels citywide. This guide is updated annually to reflect that year’s adopted guideline — currently the 2026–27 cycle, where the RGB set the adjustment at 0% for both one-year and two-year renewal leases. Unlike a free-market unit, a rent-stabilized apartment gives the landlord little flexibility to increase the rent beyond what the RGB allows, a system jointly administered by the RGB, which sets the annual adjustment, and the NY Division of Housing and Community Renewal (DHCR), which oversees compliance.
How the Rent Guidelines Board Sets the Annual Increase
After the expiration of the vacancy lease — the initial lease for a rent-stabilized apartment — or a renewal lease, the landlord is required to offer a renewal lease in a one-year or two-year term, at the tenant’s choice. The landlord is entitled to a rent adjustment whenever the tenant elects to renew. Each year’s guidelines, as established by the RGB, apply to renewal leases with effective dates between October 1 of that year and September 30 of the following year.
The RGB’s Annual Cycle
| Stage | What happens |
|---|---|
| Preliminary Guidelines | The RGB typically proposes a preliminary range of adjustments in the spring. |
| Public Hearings | Public comment sessions are typically held across the boroughs in the following weeks. |
| Final Vote | The RGB typically votes to adopt the final guideline in late June. The 2026–27 vote was held June 25, 2026. |
| Takes Effect Oct. 1 | The adopted percentage applies to leases renewing between October 1 and the following September 30. |
The 2026–27 Guideline: 0% for Both One- and Two-Year Leases
On June 25, 2026, the RGB voted on this year’s rent adjustment and adopted the following lease guidelines:
- For a one-year lease commencing on or after October 1, 2026 and on or before September 30, 2027: 0%
- For a two-year lease commencing on or after October 1, 2026 and on or before September 30, 2027: 0%
In practical terms: a tenant currently paying $2,400 per month under a rent-stabilized lease will continue paying $2,400 upon renewal, whether they choose a one-year or two-year term — the landlord cannot add even a modest increase.
As the numbers show, the rent increase has been frozen under this year’s guidelines regardless of which term the tenant chooses. Despite persistent inflation and rising property and operating costs, the RGB came down on the side of tenants this year, placing the full weight of that cost on landlords.
Why This Year’s Freeze Is Historic
This marks the first time in the RGB’s history that a double-zero adjustment has been adopted — something that did not happen even during the COVID-19 pandemic or the 2015–16 stock market selloff. Notably, the RGB’s own 2026 Price Index of Operating Costs found that the cost of operating rent-stabilized buildings rose by approximately 5.3% over the past year. In other words, the Board froze rents while simultaneously acknowledging that owners’ costs went up significantly.
The freeze also follows a change in the Board’s composition: Mayor Zohran Mamdani, who campaigned on a rent freeze, appointed a majority of the RGB’s nine members earlier this year. The vote reflects the broader, ongoing citywide debate over housing affordability, in which tenant advocates and property owners continue to disagree sharply over where the cost burden should fall.
The Financial Squeeze on Landlords
For landlords, the freeze does not exist in a vacuum. Property taxes, water and sewer charges, heating fuel, insurance premiums, and labor costs continue to rise — and many of those increases are non-negotiable. When the regulated rent roll is frozen but operating expenses climb, the result is a compressed — or negative — net operating income, which in turn puts pressure on maintenance budgets, refinancing, and property values.
What Levers Do Landlords Still Have? MCI, IAI, and Hardship Applications
The freeze does not eliminate every mechanism for adjusting the legal rent. Landlords may still be able to pursue:
- Major Capital Improvement (MCI) increases — a rent adjustment tied to qualifying building-wide capital work, approved by DHCR and phased in over time
- Individual Apartment Improvement (IAI) increases — for qualifying work inside a specific unit
- Hardship applications — where the owner meets the applicable legal standard
These avenues are narrower and more administratively burdensome than they were before the 2019 Housing Stability and Tenant Protection Act (HSTPA), but they remain part of the toolkit and should not be overlooked.
Key Takeaways for Rent-Stabilized Landlords
The stated purpose of rent regulation is to protect tenants in privately owned buildings from unwarranted rent increases while still allowing owners to maintain their buildings and realize a reasonable profit. Given this latest guideline, however, it is fair to question whether owners will be able to maintain even a minimal profit margin going forward. Landlords navigating the 2026–27 cycle should:
- Review their renewal-lease workflows
- Document operating cost increases
- Evaluate whether an MCI or IAI application makes sense for their portfolio
- Consult experienced counsel before taking any action that could expose the building to a rent overcharge claim
Contact us
Whether you’re reviewing lease renewals, preparing an MCI or IAI application, responding to a DHCR overcharge complaint, or planning ahead for next year’s cycle, Alpha Law’s real estate and landlord-tenant attorneys advise owners and investors across New York. Contact our team to schedule a consultation.
Frequently Asked Questions
What is the 2026–27 rent-stabilized rent increase in NYC?
0% for both one-year and two-year renewal leases commencing between October 1, 2026 and September 30, 2027, as adopted by the Rent Guidelines Board on June 25, 2026.
Has the RGB ever frozen rent-stabilized rents before?
The RGB has frozen one-year leases in prior cycles, but 2026–27 is the first time it has simultaneously frozen a two-year lease as well — a first in the Board’s history.
Can a landlord still increase rent despite the freeze?
Only through mechanisms outside the annual guideline — such as Major Capital Improvement (MCI) or Individual Apartment Improvement (IAI) increases, or a hardship application. Each avenue is narrower and more administratively demanding than before the 2019 HSTPA.
What should landlords do in response to the freeze?
Review renewal-lease workflows, document rising operating costs, evaluate MCI/IAI eligibility, and consult counsel before taking any action that could expose the building to a rent overcharge claim.
When do the 2026–27 guidelines take effect?
They apply to renewal leases with effective dates between October 1, 2026 and September 30, 2027.
What is the difference between the RGB and DHCR?
The RGB sets the annual percentage adjustment for rent-stabilized renewal leases. DHCR is the state agency that registers rent-stabilized apartments, oversees compliance with the Rent Stabilization Law, and handles rent overcharge complaints. They work together but serve different functions.
