NYC Rent Stabilization Renewal Increase Calculator

How this calculator works

New York City rent stabilization covers approximately 966,000 apartments as of the 2024 Housing and Vacancy Survey — by far the largest regulated rental stock in the United States. The substantive law is the Rent Stabilization Law of 1969 (RSL), codified at NYC Administrative Code § 26-501 et seq., implemented by the Rent Stabilization Code at 9 NYCRR § 2520 et seq., and administered by New York State Homes and Community Renewal (HCR) — the agency formerly known as the Division of Housing and Community Renewal (DHCR).

The current regulatory landscape was rewritten in 2019 by the Housing Stability and Tenant Protection Act of 2019 (HSTPA) — N.Y. Laws Ch. 36, signed June 14, 2019. The HSTPA was the most consequential overhaul of rent stabilization since the original 1969 enactment, and practitioners working from pre-2019 materials reach the wrong answer on five questions that this calculator surfaces.

Who is covered by rent stabilization?

Three principal eligibility paths under NYC Admin. Code § 26-504:

1. Pre-1974 buildings with six or more residential units. The historical core of the program — buildings constructed before January 1, 1974 containing at least six dwelling units. The bulk of NYC's regulated stock falls into this class.
2. 421-a, 421-g, or J-51 tax-abatement buildings. Buildings receiving certain New York City tax-abatement programs are required to be rent-stabilized for the duration of the abatement. When the abatement period ends, the apartments may exit stabilization (subject to specific phase-out rules in each program).
3. Buildings under regulatory agreements. Some buildings are voluntarily covered or are covered as a condition of receiving subsidized financing under various housing programs.

A number of buildings have exited the program over the years — primarily through condominium or cooperative conversion (which removes the individual unit on conversion, subject to non-eviction protections for the long-term tenant) or through specific deregulation events that occurred before vacancy decontrol was eliminated in 2019. To verify the regulatory status of a specific apartment, order the rent registration history from NY HCR (Form RA-90, available from hcr.ny.gov).

The annual RGB order — your renewal increase

Each year, the nine-member NYC Rent Guidelines Board (RGB) issues an order setting the maximum allowable percentage increase on rent-stabilized lease renewals for the upcoming October 1 – September 30 guidelines cycle. The order distinguishes between one-year and two-year renewal terms because of the tenant's right (see below) to choose between them.

Recent RGB orders:

• Order #56 (2025-2026 cycle, October 1, 2025 – September 30, 2026): 1-year renewal 3.00%, 2-year renewal 5.25%.
• Order #55 (2024-2025 cycle, October 1, 2024 – September 30, 2025): 1-year renewal 3.00%, 2-year renewal 5.00%.

The two-year percentage in any RGB order is always a touch higher than twice the one-year figure on an annualized basis, reflecting the value to the tenant of the second year of price certainty. The applicable order is the one in effect on the date the landlord issues the renewal notice.

The tenant's 1-year vs 2-year choice — always the tenant's choice

NYC Admin. Code § 26-511(c)(4) gives the tenant, not the landlord, the absolute right to choose between a one-year and a two-year lease renewal. The landlord's renewal notice (DHCR Form RTP-8 or the functional equivalent) must offer both terms and must apply the RGB-set increase for each term.

• 1-year renewal: lower percentage, but exposed to the next RGB order at the end of the year.
• 2-year renewal: higher percentage, but two years of price certainty insulated from the next RGB cycle.

The tenant's election is registered when they sign and return the renewal lease. A landlord who attempts to dictate the term — or who fails to offer both terms — has misissued the renewal under § 26-511(c)(4).

The HSTPA 2019 — five things that changed

The Housing Stability and Tenant Protection Act of 2019 rewrote five mechanics that had been in continuous use since the 1970s:

1. The 20% vacancy increase is gone

Pre-HSTPA, the prior NYC Admin. Code § 26-511(c)(5-a) authorized a permanent 20% bump on the legal regulated rent when an apartment became vacant — the so-called "vacancy allowance" or "vacancy bonus." The bonus compounded each time the apartment turned over and was, over decades, the single largest owner-side mechanic for raising legal regulated rents in the stabilized stock.

The HSTPA repealed the vacancy allowance in its entirety. On a vacancy today, the landlord may NOT raise rent above the prior legal regulated rent simply because the apartment turned over. Calculators that still assume a 20% vacancy bonus produce numbers that have not been lawful in NYC since June 14, 2019.

2. Preferential rent is now the ceiling

A preferential rent is a below-legal rent that the landlord agrees to charge — set out in the lease alongside the formal "legal rent." Preferential rents are common when the market rent for an apartment is below the legal rent the landlord could lawfully charge.

Pre-HSTPA, on lease renewal or vacancy, the landlord could "snap back" to the legal rent and apply RGB increases from there. Post-HSTPA, the preferential rent becomes the ceiling for the duration of the tenancy and the base of the RGB increase on renewal. The legal rent remains on the regulatory record but is economically inert during the tenancy. On vacancy, the next tenant's starting rent is anchored to the preferential rent the prior tenant was paying, not to the legal rent.

This is a structural change with durable consequences. A pre-2019 landlord could offer a preferential discount confident that the discount could be revoked at the next renewal or turnover; a post-2019 landlord who offers a preferential rent has effectively reset the regulated rent for the unit going forward.

3. MCI increases now sunset at year 31

A Major Capital Improvement (MCI) is a building-wide improvement — new boiler, new roof, new elevator, façade work, wiring upgrade, plumbing replacement — authorized under NYC Admin. Code § 26-511(c)(6) and 9 NYCRR § 2522.4.

Pre-HSTPA, an MCI order earned the owner a permanent rent increase amortized into the legal regulated rent. The increase stayed on the rent forever. Post-HSTPA, new MCI orders amortize over 30 years and the increase comes off the rent at year 31 — the increase is no longer permanent. The HSTPA also reduced the annual MCI-driven rent increase cap to 2% of base rent (down from 6% pre-HSTPA). Pre-2019 MCI orders continue under their original terms.

4. IAI is capped at $15,000 per 15-year window

An Individual Apartment Improvement (IAI) is an in-unit improvement — kitchen renovation, bathroom renovation, hardwood floor refinishing, fixture replacement — authorized under NYC Admin. Code § 26-511(c)(13) and 9 NYCRR § 2522.4. Pre-HSTPA, IAI had no spend cap; a landlord who put $80,000 into a full gut renovation between tenancies could add $1,300–$2,000 per month to the legal regulated rent for the life of the regulation.

Post-HSTPA, IAI is capped at $15,000 of qualifying spend per 15-year rolling window, amortized over 15 years. The maximum lawful IAI rent increase post-HSTPA is therefore approximately $83 per month in larger buildings ($15,000 ÷ 180) — sharply below the pre-HSTPA ceiling.

5. Vacancy decontrol is gone

Pre-HSTPA, an apartment could exit rent stabilization entirely when (a) the rent crossed the high-rent threshold ($2,774.76/month in 2019) AND (b) the apartment either became vacant or was occupied by a tenant earning above the high-income threshold. The HSTPA eliminated vacancy decontrol in its entirety. A rent-stabilized apartment remains regulated through any number of vacancies, at any level of rent, with any income of tenant.

Worked example — $2,500 rent, 1-year renewal under Order #56

A tenant on a $2,500/month rent-stabilized lease elects a 1-year renewal at the Order #56 rate of 3.00%:

• Base adjustment: $2,500 × 3.00% = $75.00 / month
• Maximum lawful renewal rent: $2,575.00 / month
• Monthly increase: $75.00 / month
• Annualized increase: $75 × 12 = $900 / year

Worked example — $2,500 rent, 2-year renewal under Order #56

The same tenant elects a 2-year renewal at the Order #56 rate of 5.25%:

• Base adjustment: $2,500 × 5.25% = $131.25 / month
• Maximum lawful renewal rent: $2,631.25 / month
• Monthly increase: $131.25 / month
• Annualized increase: $131.25 × 12 = $1,575 / year

The 2-year renewal raises the rent by $56.25 / month more than the 1-year — but it locks in for two years. If the RGB issues a higher 1-year percentage next October, the tenant who took the 2-year is insulated.

Worked example — $2,500 rent + MCI + IAI, 1-year renewal

An apartment with a $2,500 prior legal rent, an active $50/month MCI add-on, and an active $40/month IAI add-on, on a 1-year renewal under Order #56:

• Base of increase: $2,500 (the prior legal rent — MCI and IAI are pass-throughs, not part of the RGB-adjusted base)
• Base adjustment: $2,500 × 3.00% = $75.00 / month
• MCI add-on: $50 / month (pass-through)
• IAI add-on: $40 / month (pass-through)
• Maximum lawful renewal rent: $2,500 + $75 + $50 + $40 = $2,665.00 / month

Note that the RGB percentage is applied to the prior legal regulated rent before the MCI and IAI add-ons are layered on. The MCI and IAI add-ons themselves do not grow with each RGB cycle — they sit on top of the regulated base rent until the MCI 30-year sunset clock retires them or the IAI rolls out of the 15-year window.

Worked example — preferential rent on vacancy

An apartment with a $2,800/month legal regulated rent and a $2,300/month preferential rent. The current tenant vacates in 2026 and a new tenant moves in. Under the post-HSTPA preferential-rent-as-ceiling rule:

• The 20% vacancy bonus is unavailable (HSTPA repealed it).
• The new tenant's starting rent is anchored to the $2,300 preferential rent the prior tenant was paying, NOT to the $2,800 legal rent.
• Going forward, RGB increases apply to the $2,300 base. On a 1-year renewal under Order #56, the next year's lawful rent is $2,300 × 1.03 = $2,369 / month.
• The $2,800 legal rent remains on the HCR regulatory record but is economically inert for the duration of this tenancy.

The pre-HSTPA landlord could have offered the next tenant $2,800 plus 20% = $3,360 / month. The post-HSTPA result — $2,369 / month — is roughly $1,000 / month lower. This is the single most consequential post-HSTPA shift in the economics of NYC rent stabilization on turnover.

Eviction protection — the renewal right is automatic

Rent-stabilized tenants have substantive eviction protection under 9 NYCRR § 2524. The landlord may not refuse to renew a lease except on one of the enumerated good-cause grounds: nonpayment, breach of a substantial lease obligation, nuisance, illegal use, occupancy by an unauthorized subtenant, owner occupancy as primary residence (subject to strict statutory limits), demolition under DHCR permit, or withdrawal from the rental market. At-fault grounds require the statutory notice and an opportunity to cure where applicable.

The right of renewal at the RGB-set rent is automatic absent one of those grounds. The landlord may not simply decline to renew because the unit has become more valuable or because the tenant is otherwise inconvenient.

How to look up your apartment's regulatory status

The source of truth is the HCR rent registration history, available through the Rent Connect portal at hcr.ny.gov or by submitting Form RA-90. HCR returns the building's complete rent registration history — every legal regulated rent registered since 1984, the tenant of record at each renewal, any MCI or IAI add-ons, and any preferential rent on the lease.

A rent registration history is the foundation of any overcharge claim. Under the post-HSTPA standard, the look-back window for overcharge inquiries was extended to six years and HCR will inspect the registration history for inconsistencies or unlawful deregulation.

Common errors to avoid

These calculators are tools, not advice. The most frequent mistakes practitioners make when applying the RSL post-HSTPA:

• Assuming the 20% vacancy bonus still exists. It does not. The HSTPA repealed it in 2019. Any rent calculation that adds 20% on turnover is producing a number that has not been lawful in NYC for years.
• Assuming preferential rent resets on renewal. It does not. Post-HSTPA, the preferential rent becomes the ceiling for the tenancy and the base of every RGB increase.
• Compounding MCI into the base rent for RGB purposes. MCI is a pass-through that sits on top of the regulated base — it does not become part of the base for the next year's RGB calculation. The same applies to IAI.
• Confusing the legal rent with the preferential rent. They are different figures. The legal rent stays on the regulatory record. The preferential rent is what the tenant pays and what RGB increases apply to.
• Using stale RGB rates. Each guidelines cycle has its own order. Use the order in effect on the date the renewal notice issues.