New DHCR CPI & FMR Figures Impacting Good Cause Eviction Compliance

On February 19, 2025, the New York State Division of Housing and Community Renewal (DHCR) released updated Consumer Price Index (CPI) and Fair Market Rent (FMR) figures, which directly impact property owners that own properties subject to Good Cause Eviction (GCE).

Key Legal Considerations:

  • The DHCR has announced that the CPI for 2025 is 3.79%.
  • Permissible Rent Increases: Under GCE, a landowner may only increase a subject tenant’s rent up to the lesser of CPI + 5% or 10%. With a CPI of 3.79%, the maximum presumptively reasonable rent increase for 2025 is 8.79%. Any increase above this threshold could be subject to legal challenges.
  • Fair Market Rent (FMR) and Exemptions: Properties with rents exceeding 245% of HUD’s Fair Market Rent (FMR) may qualify for exemption from GCE protections.

The DHCR publication can be found here:  Good Cause Eviction Law Required DHCR Notice.

2025 FMR Figures for New York County

  • Efficiency
    • HUD FMR: $2,234
    • 245% of FMR: $5,471
  • 1-Bedroom
    • HUD FMR: $2,330
    • 245% of FMR: $5,709
  • 2-Bedroom
    • HUD FMR: $2,581
    • 245% of FMR: $6,321
  • 3-Bedroom
    • HUD FMR: $3,216
    • 245% of FMR: $7,877
  • 4-Bedroom
    • HUD FMR: $3,469
    • 245% of FMR: $8,499

What This Means for NYC Property Owners:

Owners must carefully review these new figures to determine:

  • Whether their proposed rent increases remain within presumptively reasonable limits under GCE.
  • If their properties qualify for an exemption based on FMR thresholds.
  • What legal risks exist if a rent increase exceeds the updated GCE rent increase limits.

The team at KMWB specializes in compliance strategies to help landowners navigate GCE’s evolving legal requirements. Please contact our office if you have any questions regarding GCE, CPI-based rent increases, or exemption eligibility.