What is the Ontario rent increase guideline for 2027?

The 2027 Ontario rent increase guideline is 1.9%. It applies to increases that take effect during 2027. The guideline for each year is announced by the province around late summer of the year before.

How much notice is required to raise rent in Ontario?

At least 90 days' written notice, using the official N1 form, before the increase takes effect. Rent can also only be increased once every 12 months, and not until a tenant has lived in the unit for at least 12 months.

Which units are exempt from the rent increase guideline?

Units first occupied for residential purposes after November 15, 2018 are generally exempt from the guideline cap (the increase is served on an N2 instead of an N1), though the 90-day notice and once-per-12-months rules still apply. Some care homes and social housing have separate rules.

Can a landlord raise rent above the guideline?

Only with Landlord and Tenant Board approval through an above-guideline increase (AGI) application (L5), for specific reasons such as major capital work or extraordinary increases in municipal taxes or utilities. AGIs are contested and closely scrutinised.

Ontario Rent Increase Guideline · 2026

The 2026 Ontario Rent Increase Guideline Is 2.1%

Q: What is the Ontario rent increase guideline for 2026?

The 2026 Ontario rent increase guideline is 2.1%. That is the maximum a landlord can raise the rent in a 12-month period for most rent-controlled units, without applying to the Landlord and Tenant Board for an above-guideline increase.

For most rent-controlled units, 2.1% is the most you can raise the rent in a 12-month period in 2026 — once every 12 months, and only after 90 days' written notice on an N1. The guideline for 2027 has been set at 1.9%. Here is exactly how it works, who's exempt, and how to do it right.

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2.1% cap (2026)

The maximum guideline increase for most units this year, set by the province.

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90 days' notice

Serve a written N1 at least 90 days before the increase takes effect.

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Once every 12 months

Rent can rise only once per 12 months, and not in a tenant's first 12 months.

This page is general information, not legal advice. The guideline is set each year by Ontario's Ministry of Municipal Affairs and Housing. To have your rent increases prepared and served correctly, book a free 15-minute call — it's part of what we handle for managed clients.

Year by Year

Ontario Rent Increase Guideline History

The guideline for each year is announced by the province around late summer of the year before.

Year	Guideline
2027	1.9%	Upcoming
2026	2.1%	Current
2025	2.5%
2024	2.5%

Worked Example

How to Calculate a Guideline Rent Increase

Multiply the current rent by the guideline percentage. That's the maximum increase.

Current rent $2,000 × guideline 2.1%

= $42 increase → $2,042 new rent

The exact new rent goes on the N1, with the effective date at least 90 days after you serve it.

The Rules

What Every Ontario Landlord Must Know

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Use the N1 — served correctly

A guideline increase requires the official N1 notice, in writing, at least 90 days before the new rent starts. The wrong form or short notice makes the increase invalid.

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Once every 12 months

You can't raise rent more than once in 12 months, and not until the tenant has lived there 12 months. Miss the window and you wait a full year.

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Newer units may be exempt

Units first occupied after November 15, 2018 are generally exempt from the guideline cap (served on an N2, not an N1) — but the 90-day and 12-month rules still apply.

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Above-guideline needs LTB approval

To exceed the guideline you must apply to the LTB for an above-guideline increase (AGI / L5) — for major capital work or extraordinary tax/utility cost increases. AGIs are contested and closely scrutinised.

Ontario Rent Increase — Frequently Asked Questions

What is the 2026 Ontario rent increase guideline?

The 2026 guideline is 2.1% — the maximum a landlord can raise the rent in a 12-month period for most rent-controlled units, without applying to the LTB for an above-guideline increase.

What is the 2027 rent increase guideline?

The 2027 guideline is 1.9%, applying to increases that take effect during 2027. Each year's guideline is announced around late summer of the year before.

How much can a landlord raise rent in Ontario?

For most units, no more than the annual guideline (2.1% in 2026), once every 12 months, after a written N1 served at least 90 days ahead. On a $2,000 rent, 2.1% is $42 — a new rent of $2,042.

How much notice do I need to raise rent?

At least 90 days' written notice on the official N1 form, and rent can only increase once every 12 months (and not in a tenant's first 12 months).

Which units are exempt from the guideline?

Units first occupied after November 15, 2018 are generally exempt from the cap (served on an N2 rather than an N1), though the notice and frequency rules still apply. Some care homes and social housing follow separate rules.

Can I raise rent above the guideline?

Only with LTB approval through an above-guideline increase (AGI / L5) — for major capital work or extraordinary municipal tax or utility cost increases. These are contested; a paralegal can assess whether your costs qualify.

Let Us Handle Your Rent Increases — Correctly, Every Year

A mistimed or badly served N1 costs you a full year of the increase. OLH prepares and serves guideline N1s for managed clients, tracks every anniversary date, and handles above-guideline applications when they're worth it. Book a free 15-minute call and we'll make sure you never leave a legal increase on the table.

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Rent Increase Questions? Ask Us — Free

Tell us about your unit and current rent. A licensed paralegal property manager will reach out, usually same-day, and make sure your rent increase is done right — the correct amount, the N1, and the timing. 100% free, no obligation.