FACT SHEET # 26
Guide to Rent Increases for Rent Stabilized Apartments
5 PAGES
SUMMARY AND HIGHLIGHTS
AT A GLANCE Rents can be raised by a number of lawful mechanisms relating to leases
This Fact Sheet can be and improvements, the latter of which are referred to as IAIs and MCIs.
used along with a rent
registration history of
an apartment to assist Options •L eases: A tenant can choose between a one or two year
option and the allowable guideline adjustment is set by
in determining if the
the local rent guidelines board.
apartment’s registration • Improvements: Lawful rent increases for IAIs and/or
status and rent are lawful. MCIs may be factored into rent increases.
Limitations • The rent guidelines boards set allowable lease
increases on an annual basis.
DEFINITIONS
Individual Apartment • MCI rent increases are capped at 2% per year.
Improvements (IAIs): When an • IAI rent increases are based on building size and the
owner installs a new appliance cost of the improvement.
or makes an improvement to an
apartment, the owner may be
entitled to an IAI rent increase.
Major Capital Improvements
(MCIs): Building-wide
improvements such as boilers,
windows and roofs.
Vacancy lease: When a person
rents a rent stabilized apartment
for the first time, the owner and the
tenant sign a vacancy lease.
A PUBLICATION OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL OFFICE OF RENT ADMINISTRATION FS-26 (07/2026)
FACT SHEET #26: GUIDE TO RENT INCREASES FOR RENT STABILIZED APARTMENTS PAGE 2 OF 5
FACT SHEET #26: IN DETAIL