RENT FREEZE IS HERE: NYC’s 0% Increase Takes Effect for 1 Million Rent-Stabilized Apartments Amid Court Fight
New York City’s historic rent freeze officially took effect Thursday, Oct. 1, blocking rent increases on both one-year and two-year leases for approximately one million rent-stabilized apartments across the five boroughs and delivering on one of Mayor Zohran Mamdani’s signature campaign promises.
Under the new guidelines, tenants entering into or renewing a rent-stabilized lease beginning between Oct. 1, 2026, and Sept. 30, 2027, face a 0% Rent Guidelines Board increase regardless of whether they choose a one-year or two-year lease.
That means a rent-stabilized tenant paying $2,000 per month whose renewal lease begins during the covered period can renew for either one or two years without the annual Rent Guidelines Board adjustment pushing that $2,000 rent higher.
The freeze does not apply to every renter in New York City. Market-rate apartments are not covered, and landlords of those units remain generally free to seek rent increases subject to applicable state and city laws. The measure specifically governs apartments covered by the city’s rent-stabilization system, which encompasses roughly one million homes.
It also does not retroactively erase increases on leases that began before Oct. 1. Rent-stabilized leases beginning between Oct. 1, 2025, and Sept. 30, 2026, were subject to the previous Rent Guidelines Board order, which permitted a 3% increase for a one-year lease and 4.5% for a two-year lease.
The new freeze was approved June 25, when the nine-member Rent Guidelines Board voted 7-1 to set the allowable increase at zero for both lease terms. It marked the first time in the board’s history that rents were frozen simultaneously on both one-year and two-year rent-stabilized leases.
Mamdani immediately hailed the vote as the fulfillment of the affordability pledge that became a centerpiece of his mayoral campaign.
“This is a historic victory for New York City tenants,” Mamdani said after the June vote. “This is the relief that working people across our city deserve.”
The policy affects a massive segment of the city’s housing stock. Rent-stabilized apartments account for roughly 40% of New York City’s rental housing, with more than two million New Yorkers living in affected units.
The freeze, however, arrives under a significant legal cloud.
A coalition of landlords filed suit seeking to overturn the Rent Guidelines Board’s decision, arguing that the process was improperly influenced by Mamdani and his administration and that the supposedly independent board was effectively steered toward fulfilling the mayor’s campaign promise.
Mamdani appointed six of the board’s nine members. Before the June vote, one of the board’s two landlord representatives resigned, saying he believed the outcome had effectively been predetermined.
The lawsuit has taken on additional significance in recent weeks. A Staten Island judge ordered City Hall and Rent Guidelines Board officials to turn over written communications between the mayor’s office and board personnel covering the period from Jan. 1 through the June 25 vote.
The judge wrote that allegations raised in the case “have raised significant concern to this court regarding the lawfulness of the Board’s procedure” in approving the freeze.
Documents emerging in the litigation show that officials in Mamdani’s administration and Rent Guidelines Board personnel were in regular contact during the months leading up to the vote. Attorneys representing landlords contend those communications bolster their argument that the board’s process was compromised, while the administration maintains that the RGB acted lawfully and reached its decision after considering the economic data and public testimony before it.
Despite the ongoing lawsuit, the court did not block the freeze from taking effect Oct. 1. As a result, the 0% guideline is now the operative rule while the litigation proceeds.
Landlord organizations have fiercely opposed the freeze, arguing that building owners continue to face rising property taxes, insurance premiums, labor expenses, utilities and maintenance costs even while their regulated rental income is being held flat.
“When you restrain and restrict the revenue and finances of a building and they have no ability for the costs that continue to go up, especially on an unprecedented two year rent freeze as if we know what’s going to happen in two years, this is going to cause a lower quality housing for so many tenants,” said Kenny Burgos, who represents property owners.
Tenant advocates counter that years of rent increases have placed severe pressure on working-class New Yorkers and that stabilized-building owners as a whole remain capable of operating profitably. Rent Guidelines Board data cited by tenant advocates showed net operating income for stabilized buildings increasing 6.2% in the latest year studied and more than 30% over three years.
For tenants, one of the most important practical points is that the date the lease begins — rather than simply the date a renewal offer arrives — determines which Rent Guidelines Board order applies. A qualifying one- or two-year rent-stabilized lease commencing from Oct. 1, 2026, through Sept. 30, 2027, receives the 0% guideline adjustment.
Tenants paying a preferential rent are also generally entitled to have the guideline adjustment calculated from that preferential rent for the duration of their tenancy. With this year’s guideline set at zero, the RGB portion of such a renewal increase is likewise zero.
The freeze does not necessarily mean that every conceivable charge associated with a rent-stabilized apartment can never change. Separate increases authorized under state law — including certain lawful adjustments unrelated to the annual RGB percentage — operate under their own rules. The Rent Guidelines Board order itself specifically sets the annual lease adjustment at 0%.
For Mamdani, the Oct. 1 implementation represents one of the most tangible policy victories of his administration to date. For landlords challenging the measure, however, the battle has shifted from the Rent Guidelines Board hearing room to the courthouse.
Unless a court ultimately overturns the decision, rent-stabilized tenants signing qualifying renewals over the coming year will be able to choose either a one-year or two-year lease with the same Rent Guidelines Board increase: zero.
