NYC Rent Stabilization 2025-26: Renewals Set at 3% and 4.5%

A landlord re-renting a stabilized unit that became vacant during this cycle applies the same 3.0%/4.5% framework used for renewals, not an additional vacancy-specific increase.

5. What the fair market rent guideline covers for previously controlled units

For units that were previously rent-controlled and have specific fair-market-rent calculations, this order sets that figure at the maximum base rent plus 49%.

[Cite: NYC Rent Guidelines Board, Apartment & Loft Order #57]

That's a distinct calculation from the standard renewal percentages; a landlord handling a formerly rent-controlled unit's transition needs to apply this separate MBR-plus-49% figure rather than the 3.0% or 4.5% renewal rate.

6. Why this cycle's figures matter for year-over-year budgeting

A landlord comparing this cycle's 3.0%/4.5% figures against the following cycle's Order #58, which set both renewal terms at 0%, is looking at a meaningfully different outcome between 2 consecutive years.

[Cite: NYC Rent Guidelines Board, Apartment & Loft Order #58]

That swing illustrates why a landlord shouldn't assume next year's guideline will resemble this year's; the board sets a fresh figure through its own annual process each time.

7. Why a lease that straddles October 1 needs careful date-checking

Since coverage depends specifically on the lease's commencement date, a renewal lease signed in September 2025 but commencing October 2, 2025 falls under this order, while one commencing September 29, 2025 would fall under the prior cycle's guideline instead.

[Cite: NYC Rent Guidelines Board, Apartment & Loft Order #57]

A landlord processing renewals near either boundary of the window should confirm the exact commencement date against the applicable order before calculating the increase, rather than assuming based on when the renewal was processed.

8. Why the board's annual hearing process shapes the final number

Each year's guideline order follows the board's required public hearing and vote process, which considers factors such as operating costs and the broader rental market before setting that cycle's percentage.

[Cite: NYC Rent Guidelines Board, Apartment & Loft Order #57]

A landlord trying to anticipate future guidelines should track the board's hearing process each spring rather than assuming a fixed year-over-year pattern, given how much the outcome can shift, as the move from 3.0%/4.5% to 0% the following year shows.

9. Why preferential rent still needs a direct check

Order #57's published figures address the standard guideline percentages; they don't spell out separate treatment for preferential rent, where a tenant pays less than the legal regulated rent.

[Cite: NYC Rent Guidelines Board, Apartment & Loft Order #57]

A landlord with a tenant on a preferential rent arrangement should confirm directly with the Rent Guidelines Board or a qualified attorney how the guideline percentage applies to the gap between the preferential and legal regulated rent before calculating a renewal increase.

10. Why this guideline doesn't apply beyond its own cycle

Order #57 is this specific cycle's guideline; it doesn't carry forward automatically to leases commencing after September 30, 2026, which fall under Order #58's separate terms instead.

[Cite: NYC Rent Guidelines Board, Apartment & Loft Order #58]

A landlord shouldn't apply the 3.0%/4.5% figures to a renewal commencing in the following cycle; checking which order actually governs a given lease's commencement date is a necessary step every renewal cycle.

11. What property managers should do now

The practical starting point is confirming every stabilized lease renewal's exact commencement date falls within the October 1, 2025 through September 30, 2026 window before applying the 3.0% or 4.5% figure.

For any unit transitioning from rent control, applying the separate maximum-base-rent-plus-49% calculation rather than the standard renewal percentages keeps that distinct category from getting crossed with ordinary stabilized renewals.