TL;DR

Rent control laws exist to limit how much rent can increase on specific properties to protect tenants and housing affordability. While these laws can stabilize communities, they also affect housing supply, rental prices, and long-term property strategy.

Understanding how rent control works – especially in cities like New York City and states like California, Oregon, and Washington, where rent control plays a significant role in housing policy – can help landlords and property managers stay compliant and develop smarter investment strategies.

Renting property today can feel like navigating a moving target. Between rising operating costs, shifting housing markets, and new regulations, property owners and managers are expected to navigate a tight rope. Rent control laws are among the most impactful – and, unfortunately, misunderstood – parts of that landscape.

This comprehensive guide breaks down how rent control works, where it applies, and what it means for landlords managing rental housing in various regulated markets. We’ll also share practical ways that make it easier for landlords and property managers to stay compliant while protecting their long-term business goals.

What Rent Control Means Within the U.S. Housing System

In the United States, rent control refers to laws or ordinances that set price controls on the rent of residential housing – essentially functioning as a price ceiling. These rent control laws limit how much landlords can charge for rent or how much or how often they can raise rents over time.

Rent control laws are intended to keep living costs affordable for lower-income residents and protect long-term residents during periods of housing shortages or a broader housing crisis. They are generally enacted at the municipal level, typically in cities with high demand and limited housing supply.

Where Rent Control Laws Apply Today

While rent control may be a well-known concept, it is not actually a widespread phenomenon in the United States.

As of 2024, 305 municipalities in the U.S. have rent control regulations, though enforcement and scope vary widely - and is changing all the time. At the opposite end of the spectrum, 32 states have enacted laws that prohibit local jurisdictions from implementing rent control measures (as of 2024).

As of 2025, eight states and the District of Columbia had localities with some form of residential rent control or stabilization in effect. Oregon became the first state to enact a statewide rent control law in March 2019, followed by California later that year, then Washington in May 2025.

Major cities with rent regulation include New York City, San Francisco, and areas within the city of Los Angeles.

The History of Rent Control Laws and World War II

Rent regulation in the United States dates back more than a century. New York State has had the longest history of rent controls (going back to 1920), making it a central case study for modern rent control policies.

During World War II, rent ceilings were imposed nationwide to address housing shortages, affecting 80% of homes around the country. The result of rent control during World War II was that landlords often chose to sell properties rather than continue renting at controlled prices, which was an early example of how rent control can reduce the supply of available rental units.

This historical context still shapes today’s debates around housing supply, new construction, and market efficiency.

Rent Control vs. Rent Stabilization: Understanding Rent Regulation in New York City

The term rent-regulated encompasses both rent-controlled and rent-stabilized apartments, particularly in New York City.

  • Rent-controlled apartments typically apply to older buildings with tenants who have maintained continuous occupancy since before specific cutoff dates.
  • Rent stabilization applies to a broader group of rental units and allows limited, regulated rent increases. It also encompasses a variety of protections tenants in rent-stabilized units are entitled to receive.

As of 2025, there are fewer than 25,000 rent-controlled apartments in New York City, while approximately half of the city’s total housing stock (around 1 million units) is rent-stabilized.

Rent-Controlled Apartments and Continuous Occupancy Rules

While the ideal of a rent-controlled apartment is a common NYC dream, today, most regulated housing falls under rent stabilization rather than rent control. Rent-controlled units are rare and are usually tied to strict eligibility rules.

In New York, rent control applies to residential buildings constructed before February 1, 1947, in municipalities that have not declared an end to the postwar rental housing emergency.

Tenants often qualify based on continuous occupancy before key dates or succession from a previous tenant, such as a family member. Once a rent-controlled apartment becomes vacant, it typically transitions into a rent-stabilized unit if the building meets certain criteria.

Maximum Base Rent and How Legal Rent Levels Are Set

A cornerstone of rent control laws in New York City is the maximum base rent system. This is the highest legal rent level a landlord may charge for a rent-controlled unit.

Maximum base rent calculations account for:

  • Operating costs
  • Owner’s expenses
  • Maintenance and housing preservation costs
  • Approved tax benefits

In New York City, oversight of rental controls is handled by the New York City Department of Housing Preservation and Development (HPD), a municipal agency responsible for maintaining and overseeing the city’s stock of affordable housing. Unsurprisingly, this department is the largest developer of affordable houses in the entire country. The adjustments and policies HPD makes are designed to help property owners maintain buildings built decades ago while preserving housing affordability for tenants.

Rent Increases, Annual Rent Increases, and Rent Hikes

One of the most common questions both landlords and tenants ask is how rent increases work under rent control regulations.

Rent control limits how much landlords can raise rent on protected housing, often capping annual rent increases by a fixed percentage or linking them to inflation.

California’s Tenant Protection Act of 2019, for example, caps rent increases for older buildings at 5% plus inflation, up to 10%, while allowing local governments to adopt even stricter control policies.

These limits are designed to prevent sudden rent hikes for tenants, but they also shape long-term revenue planning for property owners. In unregulated markets, landlords may still raise rents in line with rents and demand, which can create a two-tiered housing market.

For landlords seeking flexibility, tools like strategic rent concessions can help fill units without violating rent laws.

Navigating Tenant Transitions: Vacancy Control and Vacancy Decontrol

Historically, there have been two ways that landlords and property managers in rent-controlled markets are able to handle pricing after a tenant vacancy: vacancy control and vacancy decontrol.

  • Vacancy control keeps rent ceilings in place even after a tenant moves out.
  • Vacancy decontrol allows landlords to reset rent to market rates once a unit becomes vacant.

Vacancy decontrol can ease pressure on property owners but may also contribute to higher rents for new tenants. Vacancy control, on the other hand, is more protective of affordability but can further constrain housing supply.

Fair Market Rent Appeals and Rent Stabilized Units

In some jurisdictions, tenants can file a fair market rent appeal (FMRA) if the rent they are being charged appears to exceed fair market rent.

These fair market rent appeals are most common in New York City and primarily apply to rent-stabilized units. They consider factors such as location, building amenities, and rental rates for comparable properties. While appeals can adjust rent levels, the process is often complex and time-consuming, both for the tenant filing the appeal and for the landlord or property manager if they wish to respond or contest the appeal.

Tenant Protections and Just Cause Eviction Rules

Rent control tenants typically benefit from strong tenant protections. Rent control usually includes just-cause eviction rules to protect tenants, meaning that landlords must provide valid reasons for eviction. Even states without rent control laws have enacted just cause eviction laws.

Just cause eviction rules require landlords to have legitimate grounds, such as nonpayment or lease violations, for evicting a tenant. This is to prevent ‘renovictions’ or other types of displacement without cause. For landlords, understanding what is eviction and the local requirements governing evictions in your area is critical to staying compliant.

Economic Impact: Housing Supply, Housing Shortages, and New Construction

There is a broad consensus among economists that rent control has had a long-term negative effect on the national housing crisis.

A survey by the American Economic Association found that “93% of U.S. economists agreed that rent control reduces the quality and quantity of available housing.” Critics argue that rent control has been damaging in two major ways:

  • It leads to reduced housing supply by discouraging developers from building new rental units, and
  • It incentivizes conversions to for-sale housing, since landlords cannot adequately adjust their investments to respond to market pressures.

Rent control is often criticized for stifling new construction, particularly when rules apply broadly without exemptions. This is why many states exempt newly constructed buildings, single-family homes, or owner-occupied properties with four units or fewer.

The Criticisms of Rent Control: Maintenance, Operating Costs, and Property Owner Challenges

Studies have found that rent-controlled units often have more maintenance deficiencies than unregulated units, since 61% of housing providers surveyed have admitted to deferring nonessential maintenance or upgrades due to rent control. Understandably, with these limits on rent increases in place, covering rising operating costs and capital improvements can be difficult, particularly in markets where rent increases are not tied to inflation but building materials and other assets are.

Supporters counter that thoughtful tax benefits, housing preservation incentives, and community renewal programs can offset these effects when implemented correctly, while similtaneously increasing housing stability for more Americans.

The Benefits of Rent Control for Tenants: Affordability and Insulation from Market Distortions

Tenants in rent-controlled units often pay lower rents, giving them more disposable income and greater stability. Proponents argue that rent control prevents displacement and supports long-term residents during periods of instability, when they might otherwise find their housing in jeopardy.

However, economists suggest rent control can often benefit higher-income tenants more than those most in need, with 58% of providers surveyed saying that they know of higher-income tenants benefiting from rent control policies.

This can contribute to housing shortages, inefficient allocation of space, and even higher rents in unregulated units, affecting new tenants who are trying to enter the market.

Managing Rent-Controlled Properties More Efficiently

Managing regulated properties requires organization and transparency – particularly as it relates to rent control and stabilization, which is changing and evolving across the United States.

Keeping an accurate rent roll helps track rent levels, increases, and tenant history across rental units.

Technology can also reduce friction. Tools like online rent collection streamline payments, improve recordkeeping, and support better communication with existing tenants and new tenants alike.

A Smarter Path Forward for Landlords

Rent control laws are complex, and they aren’t going away in many markets – in fact, jurisdictions like Washington State added new rent control laws just last year.

While rent control can reduce flexibility, informed landlords can still operate efficiently, stay compliant, and grow sustainably. Understanding how rent control policies affect your properties, then using the right tools to manage rent, tenants, and finances, puts you in a stronger position, no matter where you operate.

TenantCloud helps landlords and property managers manage regulated and unregulated housing from a single, easy-to-use, all-in-one platform. From rent tracking to accounting and tenant communication, we’re here to make property management simpler.

Explore TenantCloud’s tools today to stay organized, compliant, and ready for growth, no matter how complex rent laws in your area become.

FAQ: Rent Control Laws

What are rent control laws?

Rent control laws limit how much landlords can charge and how often they can raise rents on certain residential properties to promote housing affordability and tenant stability.

Which states have statewide rent control?

Washington, Oregon, and California are currently the only states with statewide rent control laws.

What is the difference between rent control and rent stabilization?

Rent control applies stricter limits to older units, while rent stabilization allows regulated, periodic rent increases across a broader set of rental units.

Do rent control laws apply to new construction?

Often no. Many states and cities exempt newly constructed buildings to avoid discouraging the housing supply.

Can landlords raise rents on rent-controlled apartments?

Yes, but only within legally approved limits, often tied to maximum base rent calculations and annual caps.

Why is rent control controversial?

While it helps some tenants with affordability, critics argue it reduces housing supply, distorts markets, and can increase rents elsewhere.