Lease dictionary
Rent cap
A legal limit on how much a landlord can raise rent over a set period, usually a year.
A rent cap sets the maximum increase, either as a fixed percentage or as a formula tied to inflation. Only a few states have a statewide cap; some cities set their own, and most places have none.
Caps usually apply only to certain buildings and often exempt newer construction. Where a cap exists, an increase above it can generally be challenged, and the notice rules still apply on top.
Watch out
No cap does not mean no limits: notice periods, retaliation rules and lease terms still restrict when and how rent can go up.
See it in action
The Rent increase checker puts this term to work for you.