NYC Rent Increase Legal Limits: RGB Guidelines, Preferential Rent, and Good Cause Caps
8 min read · Updated 2025-01-15
NYC rent increase limits: annual RGB guidelines for stabilized apartments, the preferential rent rules under HSTPA, Good Cause Eviction rent increase caps for free-market tenants, and how to challenge an improper increase.
NYC Rent Increase Rules
How are rent increases for stabilized apartments determined?
The NYC Rent Guidelines Board (RGB) sets maximum allowable rent increases for rent-stabilized apartments each year, separately for one-year and two-year lease renewals. These percentage increases are the legal maximum a landlord can charge a stabilized tenant for renewal leases. Landlords may offer increases below the guideline (or even zero), but may not exceed them without a separate DHCR-approved basis (MCI, IAI, or preferential rent reversion, which is now restricted under HSTPA).
What are the current RGB guidelines?
RGB guidelines change annually based on the Board's assessment of landlord costs and market conditions. Recent years have seen guidelines ranging from 0% to 3% for one-year leases and slightly higher for two-year leases. The RGB holds public hearings before setting guidelines and the decision can be politically controversial. Tenants must receive a written renewal lease offer reflecting the current guideline rate — check the current year's guidelines on DHCR's website.
Can a landlord raise my stabilized rent beyond the RGB guidelines?
Yes, but only through DHCR-approved mechanisms: (1) Vacancy Allowance — when an apartment becomes vacant, the landlord can charge the legal registered rent plus the RGB renewal guideline (not a separate vacancy bonus under post-HSTPA rules — the pre-2019 vacancy bonus has been eliminated for new vacancies); (2) MCI Increase — DHCR-approved building-wide capital improvements (subject to 2% annual cap); (3) IAI Increase — individual apartment improvements (subject to per-room caps and 30-year expiration).
How does preferential rent affect my lease renewal increase?
Under HSTPA (2019), if your landlord charges you a preferential rent (less than the legal registered rent), the RGB percentage increase applies to the preferential rent — not to the higher legal rent. For example, if the legal rent is $2,000 but you pay $1,500 (preferential), and the RGB guideline is 3%, your renewal rent is $1,545 — not $2,060. This eliminates the pre-HSTPA practice of resetting to the legal rent when a new lease is signed, which could result in double-digit effective increases.
What rent increase limits apply to free-market tenants under Good Cause Eviction?
For covered free-market tenants (in buildings with 10+ units, not exempt under the law), a landlord cannot non-renew a lease on the grounds of offering a rent increase above: 5% plus the local CPI change (or 10%, whichever is less). If you're offered a rent increase above that cap and refuse to sign the renewal, the landlord cannot use that refusal as grounds for eviction (they lack "good cause"). You would need to remain in the apartment and defend an eviction proceeding, arguing Good Cause Eviction protection.
How do I know if my rent increase is legal?
Check: (1) Is your apartment rent-stabilized? Look up the registration on DHCR's website using your address. (2) If stabilized, compare the proposed increase to the current RGB guidelines. (3) If the landlord claims an MCI or IAI increase, they should provide documentation; you can also check DHCR's records for any orders approving such increases. (4) If your apartment has preferential rent, the base for the RGB percentage increase should be the preferential rent, not the legal rent. Contact DHCR or a tenant organization if you believe your increase is improper.
How do I challenge an improper rent increase?
For rent-stabilized apartments, file a rent overcharge complaint with DHCR using Form RA-89. DHCR will investigate the rent history. If an overcharge is found, DHCR orders a refund of overcharges (up to two years back, or more for willful overcharges) and a reduction to the correct legal rent. For free-market apartments covered by Good Cause Eviction, the primary avenue is defending against any eviction proceeding by raising the Good Cause Eviction defense in Housing Court.
What happens if a landlord raises my rent and I can't afford it?
If the increase is illegal, challenge it. If the increase is legal but unaffordable: (1) For stabilized tenants, consider applying for SCRIE (if you're 62+) or DRIE (if you have a disability) — these programs freeze your rent obligation and the city compensates the landlord; (2) NYC's Emergency Rental Assistance Program (ERAP) helps with arrears but not ongoing rent affordability; (3) Moving to a more affordable unit is sometimes the only option for free-market tenants facing large legal increases. Tenant legal organizations can help you assess your options.