Understanding NYC Rent Guidelines Board (RGB) and Annual Increases
TL;DR: The RGB sets yearly rent increase percentages for NYC's ~1 million rent-stabilized apartments. For 2024-2025: 2.75% for 1-year leases, 5.25% for 2-year leases. Landlords must follow these limits; anything higher is illegal.
What Is the Rent Guidelines Board?
The Rent Guidelines Board (RGB) is a 9-member panel appointed by the Mayor that meets annually to decide how much rent can increase for rent-stabilized apartments in NYC. Think of them as the referees keeping rent increases fair and predictable.
How RGB Increases Work
| Lease Period | Oct 1, 2024 - Sep 30, 2025 | Oct 1, 2023 - Sep 30, 2024 | Oct 1, 2022 - Sep 30, 2023 |
|---|---|---|---|
| 1-Year Renewal | 2.75% | 3.00% | 3.25% |
| 2-Year Renewal | 5.25% | 2.75% (yr 1) + 3.20% (yr 2) | 5.00% |
Note: These percentages apply to leases starting within each period. Your actual increase depends on when your lease renews.
Calculating Your New Rent
Example Calculation:
- Current rent: $2,000/month
- Choosing a 1-year renewal (Oct 2024): 2.75% increase
- Math: $2,000 × 0.0275 = $55
- New rent: $2,055/month
Quick Reference Formula:
New Rent = Current Rent × (1 + RGB Percentage)
The RGB Decision Process
Timeline (Typical Year):
- January-March: RGB research staff analyze economic data
- April: Preliminary vote on proposed increases
- Early June: Public hearings where tenants and landlords testify
- Mid-June: Final vote on increase percentages
- October 1: New rates take effect
What They Consider:
- Operating costs for landlords (fuel, labor, taxes)
- Tenant affordability and income levels
- NYC housing market conditions
- Economic indicators and inflation
Your Rights as a Tenant
✅ RGB increases are the MAXIMUM allowed
Your landlord cannot charge more than the RGB percentage, period. If they try, that's an illegal overcharge.
✅ You choose 1 or 2 years
Landlords must offer both options. Pick based on your plans and which gives you a better deal.
✅ Increases only apply at renewal
Your rent stays the same during your current lease term;no mid-lease surprises.
✅ Written notice required
Landlords must send renewal offers 90-150 days before your lease expires.
Common RGB Myths Debunked
Myth: "My landlord can add extra fees on top of RGB increases"
Reality: RGB increases are all-inclusive. Additional fees beyond legal rent are typically illegal.
Myth: "RGB doesn't apply to preferential rent"
Reality: Since HSTPA 2019, RGB increases apply to the preferential rent you actually pay (for leases signed after June 14, 2019). Your rent increases by the RGB percentage on your current preferential rent.
Myth: "Small buildings are exempt"
Reality: If your apartment is rent-stabilized, RGB applies regardless of building size.
Red Flags to Watch For
🚩 Increase exceeds RGB percentage → File an overcharge complaint
🚩 No written renewal offer → Document and contact DHCR
🚩 "Special assessments" added → Usually illegal for stabilized units
🚩 Forced to sign a new "market rate" lease → Your stabilization rights continue
Historical RGB Increases (Last 10 Years)
| Period | 1-Year | 2-Year | Notes |
|---|---|---|---|
| 2024-2025 | 2.75% | 5.25% | Below inflation rate |
| 2023-2024 | 3.00% | 2.75% (yr 1) + 3.20% (yr 2) | Split increases |
| 2022-2023 | 3.25% | 5.00% | Post-pandemic adjustment |
| 2020-2021 | 0% | 0% (yr 1) + 1% (yr 2) | COVID relief (partial freeze) |
| 2019-2020 | 1.5% | 2.5% | Historic lows |
| 2015-2016 | 0% | 2% | First 1-year freeze |
How to Verify Your Increase
- Check the official RGB website: rentguidelinesboard.cityofnewyork.us
- Calculate using your lease start date (not signing date)
- Compare to your renewal offer
- Keep records of all lease documents
What If Your Landlord Overcharges?
- First: Send a written notice pointing out the error
- If ignored: File an overcharge complaint with DHCR
- Document everything: Save all communications
- Get help: Contact tenant advocacy groups for free assistance
Remember: Overcharges can result in refunds with interest or even triple damages.
FAQ
Q: Can RGB ever decrease rent?
A: Technically yes, but it's never happened. The lowest was 0% (a freeze).
Q: Do RGB increases apply to Mitchell-Lama or HDFC co-ops?
A: No, these have different governing bodies and rules.
Q: What if I have a preferential rent?
A: For leases signed after June 14, 2019, RGB increases apply to the preferential rent you actually pay. The increase is calculated on your current preferential rent, not the higher legal rent.
Q: Can I negotiate below the RGB increase?
A: Yes! RGB sets the maximum. Landlords can always charge less.
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