Rent Increase Calculator

Increase % = (new rent − current rent) ÷ current rent × 100
New rent = current rent × (1 + increase % ÷ 100)
Yearly change = (new rent − current rent) × 12

• Current rent is the base monthly rent in the lease now. Keep separate fees, such as parking or pet rent, out of it unless you are raising those too.
• New rent is rounded to the cent when you start from a percent. Many landlords then round to a whole dollar; enter that figure as the new rent to see the exact percent.
• The same increase every year compounds: each year's increase applies to the higher rent from the year before.
• Notice and rent control come from the cited statutes in our state-law data. 23 of the 51 jurisdictions in the data have a statewide notice rule for rent increases on record; for the rest, the lease and local rules control.

The calculator starts with a tenant paying $1,500 a month whose rent goes to $1,575.

1. Monthly change: $1,575 − $1,500 = $75.
2. Percent: $75 ÷ $1,500 × 100 = 5.00%.
3. Yearly: $75 × 12 = $900 more a year, for annual rent of $18,900.

Starting from a percent: a 4% increase on $1,850 is $1,850 × 1.04 = $1,924.00, or $74.00 more a month. Repeated for three years, the rent reaches $2,081.00, slightly more than three times $74.00 added on, because each increase builds on the last.

Start with the legal limits: a few states and some cities with rent control cap the amount, and many states set a minimum notice period. Within those limits, compare the current rent with similar units nearby. Raising to market is reasonable, but a tenant who pays on time and takes care of the unit is worth something; turnover means vacancy, cleaning and repairs, and a new tenant who may not be as good.

Many landlords prefer smaller, regular increases to large, irregular ones, because tenants can plan for them. The guide to raising rent covers caps and notice by state, and the NOI calculator shows what the increase does to the property's income.

• Raising rent during a fixed-term lease that does not allow it.
• Giving less notice than your state or city requires, or using the wrong notice period for the size of the increase where the rule has tiers.
• Giving notice verbally or by text when the lease or law requires written notice.
• Calculating the percent on the new rent instead of the current rent, which understates the increase.
• Forgetting local rent control or rent stabilization rules that apply even when the state has none.

Give the tenant written notice with the current rent, the new rent, and the date it takes effect, delivered the way your lease and state law require. The free rent increase notice builds that letter. If the increase comes with a new lease term, a lease renewal letter or a lease amendment records the change. The landlord-tenant law by state pages cover notice rules in more detail.

How do I calculate a rent increase percentage?

Subtract the current rent from the new rent, divide by the current rent, and multiply by 100. Going from $1,500 to $1,575 is a $75 increase, and $75 ÷ $1,500 × 100 = 5%.

Can I raise rent during a fixed-term lease?

Usually only if the lease allows it. In most places, rent in a fixed-term lease is set for the term, and an increase takes effect at renewal or on a month-to-month tenancy after proper notice. Check your lease and the state rule shown in the calculator.

Is there a limit on how much I can raise rent?

Most states have no statewide cap, but a few do, and some cities have rent control or rent stabilization. Pick your state in the calculator to see the notice period and rent control summary from the state-law data, then check local rules for the property's address.

How should I give notice of a rent increase?

In writing, with the current rent, the new rent and the date it takes effect, delivered the way your lease and state law require and with at least the required notice. The free rent increase notice form builds the letter for you.

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• How Much Can a Landlord Raise Rent? Caps and Notice Rules by State