How Much Should Rent Go Up Each Year?

As 2026 approaches and rental markets continue to change, landlords everywhere are asking the same question: how much should rent go up each year?

The answer isn’t always simple. While many states allow rent adjustments once a lease ends or with proper notice, others enforce strict caps, inflation-based formulas, or local rent stabilization rules. Because rent laws vary widely depending on where your property is located, it’s important to understand your rental market and any applicable statewide and city-level regulations wherever your property is located to determine how much can you increase rent.

In this article, we cover what you need to know about rent increases, rent control, and other regulations to help you decide whether to or how much to raise rent in 2026.

Understanding Rent Increases in the U.S.

In most parts of the United States, rent increases are only regulated at the state or local level. Many states place few restrictions on how often landlords can adjust rent, as long as the increase follows two common standards:

1. The lease term allows it.
2. Proper legal notice is provided (typically around 30-90 days).

If a tenant is on a fixed-term lease, the current annual rent usually can’t be raised until the lease expires, unless the lease itself includes a clause that permits mid-term adjustments. On the other hand, month-to-month leases offer more flexibility, allowing landlords to change rent once per rental period, provided they comply with notice requirements.

Where things can get more complicated is in areas with rent control. Many states like California or Oregon limit not only how often landlords can raise rent, but also how much they can raise it. These restrictions often tie increases to regional inflation rates or set annual percentage caps compared to the expected future rent.

If you are wondering how much can a landlord raise rent, the main takeaway is this: rent increases are legal, but the rules behind them depend entirely on your location and your lease structure.

Are There Federal Limits on Rent Increases?

To put it simply, no. The federal government does not regulate how often or how much landlords can raise rent. There are no federal rent caps or nationwide standards governing rent adjustments. Instead, rent law is determined by individual states and, in many cases, by local governments such as cities, counties, and housing authorities.

This means that two properties in the same state may operate under very different rent-increase rules depending on:

• Local rent control ordinances
• Statewide protections
• The age and type of property
• Exemptions under local statutes

Because the federal government leaves rent policy to state and municipal lawmakers, landlords must review local housing regulations before increasing rent. Failing to comply with caps, notice laws, or exemptions can result in fines, rent-rollback orders, or legal disputes with tenants. If you’re a landlord wondering how much should rent go up each year, the first step is to check your state’s landlord-tenant laws and any rent regulations in your area.

State and Local Rent Control Laws

Rent control in the United States varies dramatically by location. While most states leave rent pricing entirely to landlords, a handful of states and cities impose strict limits on how much you can increase rent and how often. Understanding which areas have these regulations is vital to stay compliant, especially when you invest in multiple states.

States with Statewide Rent Control Laws

Only two states currently have statewide rent control laws:

1. California: The Tenant Protection Act (AB 1482) limits most annual rent increases to 5% + local CPI, capped at 10%. This law is why it is so common to wonder how often can a landlord raise rent in California. Although rent can typically be raised annually, strict percentage caps apply.
2. Oregon: Oregon allows annual increases based on inflation plus 7%, though caps may fluctuate year to year.

Understanding the specific rent regulations helps you avoid legal issues while effectively managing rent increases.

Cities with Limits

Even in states without statewide rent control, certain cities enforce their own rules. These often limit both how much you can increase rent and how frequently increases may occur. Examples include:

• Under LA’s Rent Stabilization Ordinance, rent increases and allowable timing are tightly regulated.
• Portland mirrors Oregon’s statewide cap but adds additional local protections.
• In big cities like New York City, rent-stabilized units have annual percentage caps set every year by the Rent Guidelines Board.

Local ordinances often override state rules, so landlords must be aware of both.

States that Ban Local Rent Control

Some states explicitly prohibit rent control altogether, as it is often perceived as counterproductive for all affected parties. In these states, cities and counties cannot pass rent stabilization laws even if they want to. These include:

• Texas
• Arizona
• Georgia
• Indiana
• Tennessee
• Michigan
• etc.

In these states, rent-increase rules generally rely on lease terms and notice requirements, giving landlords wide latitude.

How Often Can Landlords Raise Rent?

In most of the country., landlords can raise rent once per lease term, as long as they follow state-required notice timelines. For a standard 12-month lease, this typically means rent cannot be raised until the lease expires, unless the lease explicitly allows mid-term adjustments.

For month-to-month leases, landlords usually may raise rent once every 30 days, with written notice that complies with state law (often 30–60 days).

Properties located in rent-controlled areas may face tighter restrictions, often limiting increases to once per year and tying allowable amounts to inflation-based formulas or city-approved percentages. Since there are no federal rent-increase restrictions in place, all rules, limits, and notice requirements come from state statutes or local housing ordinances.

How Much Can Landlords Increase Rent?

To summarize, how much should rent go up each year depends entirely on where the property is located. Cities and states with rent control, such as California, New York, and Oregon, cap annual increases using a combination of fixed percentages and inflation indexes.

For example, landlords wondering “How often can a landlord raise rent in California?” should know that increases are limited to once yearly and must stay within the AB 1482 formula of 5% plus local CPI, not to exceed 10%. Outside of rent-controlled markets, landlords are generally free to increase rent by any amount the market will bear, as long as the change is reasonable, clearly communicated, and follows the required notice timeline.

Economic Factors Affecting Rent Increase Limits

Even in cities without rent control, economic conditions shape how much rent should go up each year. Inflation, cost of living, and local rental demand all influence what’s considered a fair increase. Many regulated areas tie rent hikes to the Consumer Price Index (CPI), adjusting limits up or down based on inflation. When inflation spikes, allowable increases may rise; when it stabilizes, caps usually shrink.

Market pressure matters too. Tight vacancies, property conditions, and high demand can support stronger increases, while softer markets make steep changes unrealistic. Understanding these factors helps landlords decide how much they can increase rent without violating local rules or pushing tenants out unnecessarily.

Common Rent Increase Caps in Regulated States

In states with rent control, laws clearly define how much you can increase rent each year. Most caps use a formula that combines a base percentage with inflation. For example, landlords in Oregon will find that the state limits annual increases for most units to 7% plus the regional CPI with the total amount capped each year by state law. In New York, local rent boards set yearly percentages for regulated units after reviewing cost-of-living data, taxes, and maintenance expenses.

These rules don’t determine how much rent should go up each year nationwide, but they show how tightly regulated markets approach the question. In most states without rent control, there are no preset limits at all, but only notice requirements and competitive market conditions guiding landlord decisions.

Notice Requirements for Rent Increases

No matter where you operate, you must provide your tenant with proper notice before modifying the rent. Most states require written notice delivered a set number of days in advance, which is typically 30 days for smaller increases and 60–90 days for larger adjustments on month-to-month leases. Some rent-controlled cities require even longer lead times.

If you’re raising rent, always send a clear, friendly rent increase letter. The notice should include the current rent amount, the new rent price, the effective date, and a brief statement on why the increase is happening—whether it be inflation, operating costs, or maintenance improvements. Check whether your state requires delivery by mail, by hand, or electronically, and keep a copy for your records. Failure to follow notice rules can delay the increase or create legal exposure.

Because requirements vary widely, landlords should check state statutes, city ordinances, and lease language before notifying tenants.

Never used a rent increase letter? You can download our rent increase letter template for free, by clicking below:

Download Free Rent Increase Notice

What is Exempt from Rent Increase Restrictions?

Even in areas with rent caps or local control, not all properties are covered. Many rent increase limits exclude newer construction, single-family homes, condominiums, and small owner-occupied buildings. Some states also exempt short-term rentals, subsidized housing, or units with specific financing programs. For example, in Oregon, statewide rent limits generally don’t apply to new construction under 15 years old. In markets without rent control, landlords usually face no statutory cap at all and are able to adjust rates based solely on lease terms and notice rules.

Always verify exemptions in your state or city, and if your unit qualifies, make sure the lease discloses that the property is not subject to local rent limits.

When Can Landlords Not Raise Rent?

There are common situations in which rent cannot be raised, regardless of location. Landlords typically cannot increase rent mid-lease unless the lease clearly allows it, nor can they raise rent to retaliate against a tenant who reports a safety issue or requests repairs. Some areas also block increases when landlords fail to meet habitability standards.

Imagine that a tenant files a written complaint about mold and a landlord responds by issuing a rent hike. Most states clearly classify that as retaliation and can void the increase. Likewise, if a fixed 12-month lease says rent is locked until renewal, the landlord cannot raise it until the new term begins.

Some cities also temporarily freeze rent after a natural disaster or during an official emergency period. Before raising rent, it’s important to consider if the raise is legal and fair.

Legal Consequences of Improper Rent Increases

Improper rent hikes can lead to steep penalties. If a landlord violates a local cap, raises rent without adequate notice, or increases rent in retaliation, they may face fines, forced rent rollbacks, or tenant lawsuits. For example, in regulated markets like New Jersey or parts of Oregon, landlords who exceed capped percentages may be ordered to reimburse tenants for all overcharged rent. Housing agencies can also require refunds for overcharges or block the landlord from pursuing eviction until the issue is corrected.

To protect yourself, document every increase, follow required notice timelines, and make increases only when the lease and law allow it.

Conclusion

Understanding rent increase regulations, such as the normal rent increase guidelines, is crucial for landlords to remain compliant and fair. Whether dealing with state-specific rules, local rent control laws, or general economic factors, knowing how often and by how much you can raise rent protects both you and your tenants. Always consult local statutes and provide proper notice when planning adjustments.

FAQs

How much should rent go up each year?

The amount of your average rent change should increase depends on location and local laws. States like California and Oregon have specific formulas, while many areas follow market conditions. Always check state and local regulations before deciding.

What are the common notice requirements for a rent increase?

Most states require written notice, typically 30-90 days before the increase. The exact timing can depend on local laws and the lease type. Ensure your notice is clear and compliant with these requirements to avoid legal issues.

Can landlords increase rent during a lease term?

Generally, no, unless the lease includes a specific clause allowing mid-term adjustments. Fixed-term leases typically lock rent rates until expiration. Month-to-month leases offer more flexibility but still require proper notice.

Are there exemptions to rent increase restrictions?

Yes, some properties may be exempt from rent control laws, such as new constructions, single-family homes, and certain owner-occupied buildings. Verify if your property qualifies and ensure the lease reflects any exemptions.

What are the consequences of improper rent increases?

Incorrectly raising rent can result in fines, forced rent rollbacks, or tenant lawsuits. Violating local caps or failing to provide adequate notice may lead to legal disputes. Properly documenting and complying with regulations is essential.