Rent control is a controversial topic, with pros and cons for landlords and tenants.
Housing affordability remains one of the biggest challenges in the United States, not just for hopeful homebuyers, but for renters, too. The national median rent is technically down $50 from its pandemic peak, according to Apartment List. Since the second half of 2022, rent prices have fluctuated seasonally as usual, but the overall trajectory has trended moderately downward. Still, many high-density cities are grappling with a shortage of affordable rental housing.
In dollars, the national median monthly rent was $1,398 in May, up $5 per month compared with April, but down $6 compared with May 2024.
To help keep rental costs in check, some states and cities have implemented rent control laws. This guide will break down what rent control is, how it works and what it means for renters and landlords in today’s market.
What Is Rent Control?
Rent control is a government-imposed law that caps or regulates how much a landlord can increase rent during a lease renewal or after a vacancy. Also called rent stabilization or a rent cap, it has specific guidelines a landlord must follow when increasing rent on a rent-stabilized property.
For example, the landlord may only be able to raise rent by a percentage plus the consumer price index or a specific percentage of the existing rent, and may require notification of lease changes, renewals or increases following a set schedule.
Typically, rent control laws are enacted by individual cities; however, counties or states can also impose rent control laws. There are often restrictions on which properties qualify, such as real estate built before a specific date or those with more than a certain number of rental units.
Rent control laws can:
- Cap how much rent can increase in a given year
- Apply to a renewing tenant or between vacancies
- Require specific tenant notices during the lease
- Apply to only certain property owners or properties
The goal is to prevent unaffordable rent increases in low-inventory housing markets, ensuring residents have some access to affordable housing while also allowing landlords to offset rising ownership costs related to inflation and property maintenance.
Real Estate Markets With Rent Control Laws
As of 2025, Oregon and California are the only states with statewide rent control; 33 states preempt local governments from adopting rent regulation laws. California, the District of Columbia, Maine, Maryland, Minnesota, New Jersey, New York and Oregon have rent control policies in place at the state or local level.
Most rent control laws are in place in high-density cities that struggle with housing supply. Use this free tool from Steadily to see the latest laws by state and metro city. Below are a few areas with rent control laws in 2025.
- Los Angeles – Strict
- San Francisco – Strict
- San Jose, California – Strict
- New York City – Strict
- Austin, Texas – Flexible
- Boston – Moderate
- Seattle – Moderate
- Portland, Oregon – Moderate
- Philadelphia – Flexible
- Washington, D.C. – Strict
How Does Rent Control Work?
Mark S. Martinez, founder of The Law Offices of Mark Martinez in Santa Ana, California, doesn’t like to use the term rent control. “I look at it more as tenant protections,” he says. “If a landlord is going to raise the rent or remove the tenant from the property, they have to go through certain procedures.”
For example, the landlord must give proper notice to end a lease, which can range from 30 to 120 days or more. They may also have to specify the cause for eviction in writing. If the lease is renewed, the landlord might be required to follow a formula to ensure the increase doesn’t exceed the allowable limit.
For example, in Washington, D.C., landlords can only increase rents based on this year’s consumer price index, currently 2.3%, plus 2%. So, if your rent was $2,500 in 2024, the landlord could not increase the rent by more than 4.3%, or $108 in 2025.
Ideally, rent control laws strike a balance between tenant protections and property owner rights, says Alexander Lycoyannis, partner at Holland & Knight LLP, in New York City.
“Tenants have stabilized rent and some predictability in what their rent is going to be. Landlords can invest in their buildings and recoup that investment by charging higher rents based on various formulas in the law,” Lycoyannis says.
But the real-world impacts of rent control are far more nuanced.
How Does Rent Control Impact Tenants?
Rent control provides tenants with a predictable housing cost, helping them stay in one place longer and ideally save money. When a lease is renewed, tenants know how much their rent can increase. In theory, that stability allows for more discretionary spending and saving, especially if their income rises.
It also offers protection against wrongful evictions. Landlords must adhere to strict rules and notice requirements when terminating a lease. However, that same stability can limit flexibility. Moving out of a rent-controlled unit means losing those protections and entering a competitive rental market, often at a much higher rate.
That’s why many rent-controlled tenants stay in their units for a decade or more. “The best way to take advantage of rent control laws as a tenant is to rarely, if ever, move,” says Darren Nix, CEO of Steadily Insurance Company in Austin, Texa.“Choose a physical location in the city that’s going to give you the best commuting benefits.”
This long-term occupancy has other consequences. Landlords may delay major upgrades, such as plumbing, electrical or bathroom renovations, because such work often requires tenants to vacate. With tenants in place for 10 to 30 years, it’s common for maintenance to fall behind, leaving some rent-controlled units in worse shape than comparable market-rate rentals.
How Does Rent Control Impact Landlords?
Landlords bear the brunt of rent control laws. Each city has its own set of rules, so understanding local ordinances is crucial. Failing to provide proper notice, raising rent above legal limits or initiating an unlawful eviction can result in legal action.
The most significant financial impact is the cap on rent. “It limits potential cash flow and restricts funds landlords can use for improvements,” Nix says. Over time, rising costs for taxes, insurance and maintenance can outpace revenue, leaving landlords with shrinking profit margins – or none at all.
That’s particularly true in areas with restrictive rent control, such as New York City, which recently passed a law capping how much a landlord can recoup in rent for capital improvements.
Rent control laws often apply to buildings that are 15 years or older. That discourages new development in areas with long-term rent restrictions. “If investors know that in 15 years they won’t be able to raise rents to cover upgrades or generate returns, they’re less likely to build in those markets,” Nix says.
The Takeaway on Rent Control
Rent control is a controversial topic among local governments. In recent years, many cities and states have added rent control measures to the ballot as a response to rising housing costs. “Some understand the implications of rent control but still feel it’s worth it to provide more affordable housing to people,” says Nix. Others oppose it, he adds, due to the long-term restrictions and unintended effects on the housing market.
Whether you’re a landlord or a tenant, it’s essential to stay informed about rent control laws in your area. Many municipalities vote annually on new rent caps and guidelines that directly affect how much rents can increase. And even if your city doesn’t currently have rent control, that could change – so keep an eye on evolving local policies.
