Rent stabilization affects approximately one million apartments in New York City. Whether you are a landlord managing regulated units or a tenant wondering about your rights, understanding the current rules is essential. Here is what you need to know in 2026.
What Is Rent Stabilization?
Rent stabilization is a system of tenant protections that limits how much landlords can increase rent each year and provides tenants with the right to renew their leases. It applies to apartments in buildings with six or more units built between 1947 and 1974, as well as units in newer buildings that received tax benefits (421-a, J-51).
Which Buildings Are Rent Stabilized?
Buildings are typically subject to rent stabilization if they:
- Were built between February 1, 1947 and January 1, 1974 and have six or more units
- Received 421-a tax exemptions (units must be stabilized for the benefit period)
- Received J-51 tax benefits (units stabilized during the benefit period)
- Are located in Mitchell-Lama developments that left the program
The Rent Guidelines Board
Each year, the NYC Rent Guidelines Board (RGB) sets maximum allowable rent increases for stabilized apartments. Under RGB Order #57, covering lease renewals beginning October 1, 2025 through September 30, 2026, the approved increases are 3% for one-year renewals and 4.5% for two-year renewals.
The Housing Stability and Tenant Protection Act (HSTPA)
The 2019 HSTPA made dramatic changes to rent stabilization:
- Eliminated vacancy decontrol: Units can no longer be deregulated when they become vacant, regardless of rent level
- Limited vacancy increases: Landlords can no longer take a 20% increase upon vacancy
- Capped Individual Apartment Improvements (IAIs): Initially limited to $15,000 over 15 years; since 2024 the cap is $30,000 over 15 years (up to $50,000 for qualifying long-vacant units)
- Eliminated Major Capital Improvements (MCI) sunset: MCI increases now expire after 30 years
- Eliminated high-rent/high-income deregulation
How to Check if an Apartment Is Rent Stabilized
Check the building's registration status with the NYS Division of Housing and Community Renewal (DHCR). You can also check on RegWatch whether a building received 421-a or J-51 benefits, which would make units subject to stabilization. Use our free property search to check building details and tax exemptions.
Landlord Obligations
- Register all stabilized units annually with DHCR
- Provide lease renewal offers 90-150 days before expiration
- Maintain habitable conditions (violations affect ability to collect increases)
- Provide rent history upon tenant request
- Include a lease rider explaining stabilization rights
Impact on Property Investors
Rent stabilization significantly affects investment returns. Stabilized buildings trade at lower cap rates because rental income is constrained. When evaluating a stabilized building, use RegWatch to check tax exemption status, violation history, and registration records — critical data for underwriting.