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How much can you raise rent under New York's Good Cause Eviction Law?

For a covered unit, a yearly increase above the "local rent standard" is presumed unreasonable: 5% plus the regional inflation rate, never more than 10%. With the inflation figures New York's housing agency published in 2026, that works out to 8.38% in New York City and nearby counties and 8.15% in opt-in towns upstate. Many small owners are exempt, so check coverage first.

Step 1: is your unit covered at all?

The law is Article 6-A of the Real Property Law. It applies in New York City automatically and only in other cities, towns and villages that pass a local law to opt in. Work through these questions in order; a "no coverage" answer at any step means the rent presumption does not apply to that unit. The exemptions are in section 214 and the definitions in section 211.

  1. Location. Is the building in New York City, or in a municipality on the opt-in list that the Division of Housing and Community Renewal (DHCR) publishes each year? DHCR's 2026 notice lists 19 places as of May 4, 2026, including Albany, Rochester, Kingston, Ithaca and New Rochelle.
  2. Small landlord. In New York City, a "small landlord" owns no more than 10 units in the state. When an entity owns the building, every person with a direct or indirect stake must own 10 or fewer, and an entity that cannot name all its owners does not qualify. Opt-in places may set their own number; most on DHCR's 2026 list chose one unit, and White Plains chose four.
  3. Owner occupied. A building where the owner lives with no more than 10 units is exempt.
  4. New construction. A building whose first certificate of occupancy was issued on or after January 1, 2009 is exempt for 30 years from that certificate.
  5. Regulated or affordable. Units already under rent regulation, or required to be affordable under a statute or a regulatory agreement, are exempt.
  6. High rent. A unit whose monthly rent is above 245% of HUD's fair market rent for the county is exempt in New York City. Opt-in places can pick a different percentage; DHCR's 2026 list shows 245% to 345%.

For scale: DHCR's 2026 notice puts 245% of fair market rent for a two-bedroom in the five New York City counties at $7,130 a month. A two-bedroom renting for more than that is outside the law in the city.

Step 2: find this year's local rent standard

Section 211 defines the "inflation index" as 5% plus the yearly change in the regional consumer price index for the prior calendar year, and the "local rent standard" as that index or 10%, whichever is lower. DHCR must publish the inflation figure by August 1. Its 2026 notice gives the change from 2024 to 2025:

Where the unit isCPI change, 2024 to 20255% plus CPILocal rent standard
New York City, and opt-in places in Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk or Westchester3.38%8.38%8.38%
Opt-in places in every other county (Northeast region index)3.15%8.15%8.15%

The last two columns apply the formula in section 211(7) and (8) to DHCR's published CPI figures. DHCR publishes new figures each summer, so recheck before each renewal season.

What "presumed unreasonable" means in practice

The cap is not a flat ban. Under section 216(1)(a), unpaid rent is good cause to evict only if the unpaid amount did not come from an unreasonable increase. An increase above the local rent standard in any calendar year is presumed unreasonable, and an increase at or below it can never be called unreasonable. The presumption can be rebutted.

When a court weighs an increase, it may consider your costs for fuel, utilities, insurance and maintenance, and it must consider your property taxes and recent tax increases. It may also consider a good-faith increase after significant repairs: replacing or substantially changing a structural, electrical, plumbing or mechanical system that needs a permit, or abating lead paint, mold or asbestos. Painting, decorating and minor repairs do not count, and neither do repairs caused by your own failure to maintain the building.

So an owner can still ask for more than the standard, but should expect to prove the costs behind it if the tenant does not pay and the case goes to court. Keep the tax bills, insurance renewals and permit-backed invoices that justify the number.

Step 3: work out the number

Example a made-up one-bedroom in Brooklyn renews at $2,400 a month. The 2026 standard there is 8.38%, so the largest increase that cannot be called unreasonable is $2,400 x 8.38% = $201.12, a new rent of $2,601.12. A renewal at $2,640 (a 10% increase) would be above the standard and presumed unreasonable.

Example a made-up two-bedroom in the City of Albany, which opted in, rents for $1,450. Albany County uses the Northeast index, so the standard is 8.15%: $1,450 x 8.15% = $118.18 (rounded), a new rent of up to $1,568.18. Albany set its small landlord line at one unit. So if this is a 6-unit building and its owner holds nothing else, the unit is covered in Albany, while the same owner with the same 6 units in New York City would be exempt as a small landlord.

The section says "in any calendar year", so count every increase that took effect in the same calendar year together, not just the latest one.

Step 4: attach the required notice

Every landlord, covered or not, must attach a filled-in notice under section 231-c to each initial lease, each renewal lease, each rent increase or non-renewal notice under section 226-c, each rent demand, and each eviction petition. The form asks whether the unit is covered and, if not, which exemption applies, such as small landlord or a building newer than 2009. The statute prints the exact wording to use.

Timing still follows the separate notice rule: an increase of 5% or more needs 30, 60 or 90 days' written notice depending on how long the tenant has lived there. Our post on rent increase notice periods walks through those tiers.

Where DoorKeeping fits

You decide the renewal rent. DoorKeeping sends the e-signed renewal offer after your one-tap approval, keeps the signed lease and any attached notices in the property's documents, and keeps each unit's rent history in its ledger, so you can see every increase in a calendar year at a glance. DoorKeeping gives no legal advice; check coverage and the current DHCR figures with your attorney.

Sources

  1. New York Real Property Law section 211 (definitions, inflation index, local rent standard), read Oct 30, 2026
  2. New York Real Property Law section 214 (covered and exempt housing), read Oct 30, 2026
  3. New York Real Property Law section 216 (grounds for removal, unreasonable increase), read Oct 30, 2026
  4. New York Real Property Law section 231-c (Good Cause Eviction Law notice), read Oct 30, 2026
  5. NY Homes and Community Renewal, Good Cause Eviction, read Oct 30, 2026
  6. DHCR, Good Cause Eviction Law Required Notice (posted July 16, 2026), read Oct 30, 2026

Questions

What is the Good Cause rent increase limit in NYC for 2026?
Using DHCR's 2026 figures, the local rent standard for New York City is 8.38% (5% plus 3.38% inflation). Increases above it are presumed unreasonable, not banned outright.
Does Good Cause Eviction apply to a 6-unit building?
In New York City, not if every owner holds 10 or fewer units in the state, or if the owner lives in the building. In opt-in places the small landlord line is often one unit, so a 6-unit building there is usually covered.
Do I need the Good Cause notice if my building is exempt?
Yes. Section 231-c requires the notice on leases, renewals and certain notices from every landlord, and the form is where you state the exemption that applies.