The past two years have been painful for renters throughout the U.S. Though rent increases are slowing down somewhat, Zillow reported that monthly rents rose 4.8% year over year in May 2023, bringing the typical rent in the U.S. to $2,048. That's about 21% more than the typical renter paid in May 2021.
Many of the cities where rent increases are steepest are those that have long been considered affordable, like Cincinnati and Providence, Rhode Island.
If you're a tenant who's struggling to make ends meet, you may be wondering: Is there any limit to how much your landlord can raise the rent?
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How much can your landlord raise your rent?
Your landlord can typically increase your rent by however much they want -- unless your city or state has rent control laws. Currently, 33 states ban local governments from adopting rent control laws, according to the National Apartment Association. Even if you live somewhere with rent control regulations, landlords can often petition a rent control board to make the case for higher rents if they can show their costs have increased substantially.
There are some restrictions, though. Your landlord generally can't raise your rent mid-lease unless the increase is spelled out in your agreement. In many states, your landlord needs to give advance notice -- often 30 days -- before raising the rent. Often, the landlord needs to notify you in writing.
Unfortunately, when your rent rises, your security deposit may also go up. Many states limit security deposits to one or two times the monthly rent. So let's say your rent is $2,000 and you paid a security deposit of one-month's rent. If your landlord increases your rent by 10%, they could require you to pay an extra 10%, or $200, for your deposit.
Markets with fastest-growing annual rents in the U.S.
| Market | Typical Rent (With Year-Over-Year Increase) |
|---|---|
| Cincinnati | $1,526 (7.9%) |
| Boston | $3,026 (7.7%) |
| Providence, Rhode Island | $2,015 (7.5%) |
| Kansas City, Missouri | $1,425 (6.9%) |
| Louisville, Kentucky | $1,341 (6.8%) |
Data source: Zillow Rent Report, May 2023. Chart by author.
There are a few limited circumstances where a rent increase can be illegal -- in which case you should contact a local tenant rights association or attorney. For example, your landlord can't increase your rent for discriminatory reasons. They can't charge you more because of your race, gender, or sexuality, or if you have kids. Proving discrimination, however, can be difficult.
Landlords also can't increase your rent for retaliatory reasons. For example, if you complain to your local housing authority that your apartment is unsafe, management can't strike back by increasing your rent.
How to avoid a major rent hike
Ultimately, renters are often at the mercy of their landlords. If you live in a part of the country where rents are still skyrocketing, you can probably expect your rent to increase once your lease expires.
That's especially true if your landlord's expenses are going up due to rising insurance rates and property taxes. That said, there are a few things you can do to up the odds that your landlord will keep your increases reasonable.
- Be a good tenant. Landlords are taking a gamble when they rent to someone new. If you pay your rent on time, keep the property clean, and aren't the cause of complaints from neighbors, they'll want to keep you as a tenant.
- Research market values. If you live in an area where rents are soaring, you'll have less bargaining power with your landlord. But if you find that your landlord is seeking a premium, compared to comparable rentals nearby, you may be able to talk them down from a major increase. Landlords are essentially losing money when their properties are vacant, so they may prefer to keep them occupied, rather than waiting for someone who will pay top dollar.
- Sign a long-term lease. Avoid month-to-month leases, as your landlord can raise your rent at any time, as long as they give you the required notice. While most leases are annual, you may want to consider asking for a two-year lease to lock in a lower price.
