Rent Control Laws in the United States

Rent control is a name for policies that restrict the ability of private landlords to set rent prices and/or raise them over time. These laws most often apply to apartments and other residential rental properties.

Rent stabilization is a closely related concept to rent control. The terms are interchangeable in some jurisdictions. In others, they refer to different sets of rules and policies.

Proponents of rent control say it supports housing affordability, particularly for lower-income renters. It also prevents renters from being displaced by rising rents, especially in neighborhoods that are in the process of gentrification.

Opponents of rent control say it infringes on landlord rights to make housing available on the rental market, prevents landlords from maintaining their properties or meeting operating costs, and restricts housing supply by deterring investors from building new housing.

For legal advice as a landlord or tenant on rent control laws in your area, reach out to an experienced landlord-tenant lawyer.

Which States and Cities Have Rent Control?

In the United States, rent regulation is a matter for state and local governments. Two states, Oregon and California, have statewide laws restricting rent increases.

Rent control ordinances have also been implemented by municipalities in New York, New Jersey, California, Maryland, Maine, and Minnesota. The District of Columbia also has a rent stabilization law in effect.

Statewide Rent Control Laws

In 2019, both Oregon and California implemented similar statewide laws limiting annual rent increases.

Oregon’s rent control law limits rent increases to 7 percent plus the rate of inflation. The California law is stricter, limiting rent increases to 5 percent plus inflation, but it was implemented only for a ten-year period and is set to expire on January 1, 2030.

Both state laws contain exemptions for housing that is less than 15 years old and certain other specific types of properties. Both laws also provide for vacancy decontrol, meaning that if a dwelling is vacated by all existing tenants, the landlord is free to set a higher rent for any new tenants who move in. Finally, both states simultaneously enacted laws limiting landlords’ ability to evict tenants without just cause.

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Municipal Rent Control and Rent Stabilization Policies

The list of local governments that have implemented some form of rent control is constantly shifting, as some cities move toward restricting rents and others move away from it.

New Jersey and New York have the greatest numbers of rent control jurisdictions, followed by California. In Maryland, Takoma Park is the only city with a rent stabilization law. At least two additional cities in other states — Saint Paul, Minnesota, and Portland, Maine — have adopted rent restrictions. Washington, D.C. — a federal district — also has a rent control law.

New York City Rent Control vs. Rent Stabilization

New York City has the largest number of rent-regulated units in the country. It uses a two-tier system of rent control vs. rent stabilization. The term rent control only applies to buildings in NYC:

• Built before Feb. 1, 1947;
• Where the same tenant has occupied the unit since before July 1, 1971; or
• Where a close family member of such a tenant has taken over the tenancy under very specific conditions.

Due to these restrictions, rent control only applies to a small number of apartments occupied primarily by elderly, low-income residents.

Otherwise, the overwhelming majority of rent-regulated units in New York fall under “rent stabilization.” This applies to buildings with six or more units that were built between February 1, 1947, and December 31, 1973, as well as some newer and/or smaller buildings where the landlord has agreed to rent stabilization in exchange for certain tax benefits.

Each program has its own set of complex rules, which have changed over time as the state legislature has modified both programs.

In addition to New York City and Washington, D.C., the largest cities with local rent control laws include Los Angeles, San Francisco, and Oakland, California.

What Landlords and Tenants Should Know About Rent Control

In jurisdictions that have rent control and rent stabilization laws, it is important for both landlords and tenants, as well as rental housing investors, to be aware of how these laws apply to their circumstances.

Relevant questions to research, may include:

• Who sets the maximum amount that rent can be increased every year? Is it the same every year, or does it change every year based on inflation or any other factors?
• Do rent control laws apply only to buildings with older construction dates, and if so, when was my building constructed?
• If an apartment is completely vacated, is there anything that restricts the landlord’s ability to set a higher level of rent for new tenants?
• Does the law prescribe minimum standards of service and upkeep that the landlord must meet? If so, does it allow for rent abatement if those standards aren’t met?
• Is there any mechanism where a landlord can request the ability to raise a tenant’s rent more than normally allowed based on special circumstances?
• Can a landlord require a tenant to leave so they can renovate an apartment or building and rent it out to someone else for more money?

Find Legal Help

Landlords, tenants, and investors will also benefit from staying aware of any changes to rent control laws or ordinances. State and local governments, housing industry groups, and tenants’ rights groups are good sources of information about rent restrictions and legislative updates.

For personalized legal advice on rent-controlled units, reach out to a local landlord-tenant law attorney.