New DHCR Fact Sheet Lowers the GCE “Reasonable” Rent Increase Standard

Since August 18, 2024, New York property owners have been required to provide tenants with a Good Cause Eviction (“GCE”) Law Notice when taking certain actions, such as offering new leases, renewing existing leases, or issuing non-renewal notices. This notice must be included in all leases, renewals, and predicate notices, and applies to all property owners, including those exempt from the GCE law.

New DHCR Fact Sheet and Updated Rent Standard

The New York State Division of Housing and Community Renewal (DHCR) has issued an updated GCE Fact Sheet. Notably, although the Fact Sheet was only just published this month, the underlying data DHCR relied on is dated as of May 4, 2026 — meaning the figures reflect an earlier data set rather than the most current available CPI numbers.

According to the Fact Sheet, the applicable Consumer Price Index (“CPI”) for New York City is 3.38%, resulting in a new local rent standard of 8.38% (CPI of 3.38% plus 5%) for New York City apartments subject to the GCE law. Rent increases at or below this threshold are presumptively reasonable; increases above it will generally be deemed presumptively unreasonable. This marks a decrease of nearly half a percentage point from last year’s standard of 8.79%.

The Fact Sheet applies CPI by region rather than a single citywide-versus-everywhere-else figure. Downstate counties — including Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, and Westchester — use the same 3.38% CPI (8.38% standard) as NYC. This means several opted-in municipalities outside NYC, such as White Plains and New Rochelle (Westchester) and Poughkeepsie and Beacon (Dutchess), also fall under the 8.38% standard. Opted-in municipalities located in upstate counties — such as Albany, Hudson, Ithaca, Kingston, Middletown, and Newburgh — instead use a 3.15% CPI, producing an 8.15% local rent standard.

The Fact Sheet also republishes the HUD Fair Market Rent (FMR) figures and 245% FMR exemption thresholds by county, along with the current list of municipalities that have opted into the GCE law.

Key Dates and Considerations

  • DHCR is required by statute to publish, on or before August 1st each year:
    • The Fair Market Rent (FMR) and 245% FMR thresholds for each unit type, by county.
    • A list of municipalities outside NYC that have adopted local GCE laws.
    • The New York State CPI, which determines the local rent standard applicable to GCE-covered renewal leases.
  • DHCR has now issued several GCE-related notices since the law took effect, most recently this Fact Sheet.
  • Because the Fact Sheet relies on data as of May 4, 2026 rather than the most current figures available at publication, property owners should watch for the possibility of a further update or correction before or around the statutory August 1st deadline.

What This Means for Property Owners

  • The GCE Law has been in effect since August 18, 2024 (i.e., 120 days after it was signed).
  • Property owners should monitor DHCR notices carefully each year for updates to the CPI and HUD FMR percentages, and should be aware that published figures may lag behind the most recent underlying data.
  • Rent increases above the applicable published local rent standard (8.38% for NYC and most downstate counties; 8.15% for opted-in upstate municipalities) may be challenged as presumptively unreasonable under the GCE law.
  • Ensure GCE notices are included in all relevant lease and renewal documentation as required by law.

If you have any questions about the GCE law, the recent DHCR Fact Sheet, or how these updates affect your properties, contact James Marino, Vladimir Favilukis or call KMWB at 212.869.5030.

Media Contacts:

Briana Spariosu
Kucker Marino Winiarsky & Bittens, LLP
(212) 869-5030
bspariosu@kuckermarino.com