Sep 12, 2026 · by BalayHub Admin · 6 min read

Rent Increase Philippines 2026: the 1% Cap and Your Rights

Rent increase Philippines 2026: the 1% cap on units at ₱10,000 or less, what the contract governs above that, deposit limits, ejectment and penalties.

Rent Increase Philippines 2026: the 1% Cap and Your Rights

Rent increase Philippines 2026, in one sentence: it is legal in most cases, for the cheapest units it is capped by law at 1%, and for everyone else it is governed by the contract you signed rather than by the landlord's mood. Both sides get this wrong. Tenants assume any increase can be refused, landlords assume a new year means a new price, and the argument usually ends at the barangay hall. Here is what the Rent Control Act actually says, what the housing board decided for 2025 and 2026, and what to do on either side of the lease.

The 1% cap: who it covers in 2026

The National Human Settlements Board, the policy body under the Department of Human Settlements and Urban Development, extended rent control through 2026 with Resolution 2024-01, issued in December 2024. For residential units renting at ₱10,000 (about $159 / €138) a month or less, the allowable increase was 2.3% for 2025 and drops to 1% for 2026, for as long as the same tenant stays in the unit. On a ₱10,000 (about $159 / €138) rent, that is a maximum increase of ₱100 (about $1.6 / €1.4) in 2026. The DHSUD resolution.pdf) is the operative text, and the 2026 figure was reported by the Inquirer when the board announced it.

Two conditions matter. The cap applies to the same tenant continuing or renewing a lease, so it protects people who stay put. And it applies to the unit's rent level, not to the building: a ₱9,000 (about $143 / €124) bedspace in a Makati apartment is covered, a ₱25,000 (about $399 / €345) condo in Cavite is not.

What the law says for everyone else

The framework is Republic Act 9653, the Rent Control Act of 2009. Its original coverage was units renting for up to ₱10,000 (about $159 / €138) in Metro Manila and highly urbanized cities and up to ₱5,000 (about $80 / €69) elsewhere, with a 7% annual ceiling, and Section 6 lets the housing board extend the regulation and adjust the ceiling, which is exactly what the 2024 resolution did.

If your rent is above the covered level, the Act's cap does not apply and the lease contract governs. In practice that means three things. During a fixed term lease the rent cannot change unless the contract says it can. At renewal the landlord can propose any new figure, and the tenant can accept, negotiate or leave. And a landlord who wants a tenant out to reset the rent still has to follow the ejectment rules, which do not include "I want more money" as a ground.

Some of the Act's protections apply regardless of the rent level and are the ones most often ignored. Section 7 limits what a landlord can collect upfront: no more than one month advance rent and no more than two months deposit, and the deposit has to sit in a bank account in the landlord's name, with the interest returned to the tenant at the end. Our guide to security deposits and tenant rights covers the refund fight in detail.

When the landlord can and cannot end the lease

Section 9 of the Act lists the grounds for judicial ejectment, and they are the same whether the rent is ₱6,000 (about $96 / €83) or ₱60,000 (about $956 / €829): subleasing or taking in boarders without written consent, arrears of three months, the owner's legitimate need to use the unit after three months' written notice, repairs ordered by the authorities, and expiry of the lease. A tenant who pays on time and has not sublet cannot be evicted mid term because the landlord found someone willing to pay more. The full procedure, from demand letter to court, is in our guide on eviction rules and tenant rights.

The reverse also holds. A tenant who wants to leave before the end of a fixed term is bound by the pre termination clause, which is why we keep saying to read it before signing; the consequences are in our piece on ending a lease early.

Penalties, and where to complain

Violating the Act, including charging a covered tenant more than the allowed increase or collecting more than the permitted deposit, carries a fine of ₱25,000 to ₱50,000 (about $399 to $797 / €345 to €691), imprisonment of one month and one day to six months, or both. Enforcement in practice starts at the barangay, whose conciliation is a required first step for disputes between residents of the same city, and continues with DHSUD for housing matters and the courts for ejectment. Keep the lease, the receipts and every message about the increase; the case is won or lost on paper.

What to do if you are the tenant

Check three things before you respond to a notice. Is the rent ₱10,000 (about $159 / €138) or below, and were you already the tenant in 2025? Then the 2026 increase cannot exceed 1%, and a written reply citing NHSB Resolution 2024-01 usually ends the conversation. Is the rent higher? Then look at the contract: a mid term increase is not enforceable unless the lease allows it, and a renewal offer is a negotiation, where the landlord's real alternative is a vacancy of one to three months and a new tenant to screen. Either way, answer in writing, keep paying the current rent on time so you never hand the landlord the arrears ground, and compare the proposed rent with what similar units ask on the rental listings and in our Metro Manila renting guide.

What to do if you are the landlord

If the unit rents at ₱10,000 (about $159 / €138) or below and the tenant is staying, the increase is 1% and nothing more, so do not issue a notice that says otherwise; it is evidence against you. If the unit is above the threshold, raise the rent at renewal, in writing, with at least a month's notice and a figure the market supports, because a good tenant who pays on time is worth more than a few hundred pesos a month. A vacated unit can be re let at whatever the market bears, and that is the legitimate moment to reset. Put the deposit in the bank as the law requires, hand over official receipts, and use a written lease with a clear increase clause; our lease agreement template has one, and the landlord's guide to renting out a condo covers the rest of the year.

This article is general information, not legal advice. The rent control coverage and ceiling are set by NHSB resolution and can change; check the current issuance on the DHSUD site and consult a lawyer or the barangay for your specific dispute.

Dollar and euro figures are approximate conversions at ₱62.7 per US dollar and ₱72.4 per euro (ECB reference rates, 2026-09-16).

Frequently asked questions

How much can a landlord increase rent in the Philippines in 2026?

For residential units renting at ₱10,000 (about $159 / €138) a month or less, occupied by the same tenant, the maximum increase in 2026 is 1% under NHSB Resolution 2024-01, down from 2.3% in 2025. Above ₱10,000 (about $159 / €138) there is no statutory cap: the lease contract governs, so a mid term increase needs a clause that allows it, and at renewal the new rent is a negotiation.

Can my landlord raise the rent in the middle of my lease?

Only if the contract says so. A fixed term lease locks the rent for the term unless it contains an escalation clause, and for covered units at ₱10,000 (about $159 / €138) or below the increase is limited to 1% in any case. A notice that simply announces a higher rent from next month is a proposal you can decline in writing, while continuing to pay the current rent on time.

How much deposit and advance can a landlord ask for?

Section 7 of the Rent Control Act limits it to one month advance rent and two months deposit, and the deposit must be kept in a bank account in the landlord's name, with interest returned to the tenant at the end of the lease. Asking for three months deposit, or keeping the deposit in cash, violates the Act, whatever the rent level.

Can a landlord evict a tenant to rent the unit at a higher price?

No. The grounds for ejectment under Section 9 are subleasing without consent, three months of arrears, the owner's legitimate need to use the unit after three months' written notice, repairs ordered by the authorities, and expiry of the lease. Wanting a higher rent is not a ground. The landlord can only reset the rent once the unit is genuinely vacated.

What is the penalty for violating the Rent Control Act?

A fine of ₱25,000 to ₱50,000 (about $399 to $797 / €345 to €691), imprisonment of one month and one day up to six months, or both, under Section 13 of RA 9653. Disputes normally start with barangay conciliation, then go to DHSUD for housing matters or to court for ejectment. Keep the lease, official receipts and every written notice, because the case turns on the documents.

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