Key facts for 2027
1.9% guideline
Maximum increase for rent-controlled units
Effective January 1, 2027
For increases taking effect on or after this date
90 days written notice
On Form N1 — serve from October 3, 2026
Nov 15, 2018 exemption
Newer units may be exempt from the guideline
Bottom line
- The 2027 guideline is 1.9%, down from 2.1% in 2026.
- It applies to rent increases that take effect on or after January 1, 2027. Increases dated in 2026 still use the 2.1% cap.
- For a January 1, 2027 increase, you can serve the N1 as early as October 3, 2026 (90 days’ notice).
What 1.9% means for your rent
The guideline is the maximum most landlords can raise rent on a rent-controlled unit in a 12-month period without LTB approval. At 1.9%, here is the math on a few common rents:
Maximum 2027 increase (1.9%)
$1,800 × 1.9% = $34.20 → new rent $1,834.20
$2,000 × 1.9% = $38.00 → new rent $2,038.00
$2,400 × 1.9% = $45.60 → new rent $2,445.60
Use our free rent increase calculator to work out the exact amount for any rent — the 2027 guideline is already built in.
How the 1.9% guideline was set
The guideline tracks the Ontario Consumer Price Index. Under O. Reg. 516/06 s. 8, it is based on the average Ontario CPI over the 12-month period from June of the prior year to May of the current year — so the 2027 figure reflects Ontario CPI from June 2025 to May 2026. The guideline is capped at 2.5% by law (RTA s. 120(2)), even when inflation runs higher. At 1.9%, the 2027 number sits comfortably below that ceiling.
The figure is published on Ontario’s official residential rent increases page and rent increase guideline page, both updated June 23, 2026. Unlike some prior years, the 2027 guideline was not accompanied by a standalone government news release — the official guideline pages are the source of record.
Ontario rent increase guidelines: year by year
| Year | Guideline | Example ($2,000 rent) |
|---|---|---|
| 2027 | 1.9% | +$38.00/month |
| 2026 | 2.1% | +$42.00/month |
| 2025 | 2.5% | +$50.00/month |
| 2024 | 2.5% | +$50.00/month |
| 2023 | 2.5% | +$50.00/month |
| 2022 | 1.2% | +$24.00/month |
* Guidelines apply to rent-controlled units only. Units first occupied after November 15, 2018 may be exempt.
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Serving an N1 for a 2027 increase
For an increase that takes effect on or after January 1, 2027, use the 1.9% guideline. The notice is Form N1 (Notice of Rent Increase), served at least 90 days before the new rent date under RTA s. 116, and a unit can receive only one guideline increase in any 12-month window.
Key date
The earliest you can serve an N1 with the 1.9% amount for a January 1, 2027 effective date is October 3, 2026 — exactly 90 days out. Serve earlier than that and the effective date has to move later to keep the 90-day notice valid.
Our N1 form guide walks through every field, and the N1 effective date calculator pins down the exact date for your rental period.
When the 1.9% guideline does not apply
Not every unit is capped at the guideline. The big exemption: units first occupied for residential purposes after November 15, 2018are generally exempt from rent control under the Residential Tenancies Act, so the 1.9% cap may not limit your increase (you still owe 90 days’ notice). Rent on a vacant unit between tenancies is not regulated either. And to go above 1.9% on a rent-controlled unit, you need an approved Above Guideline Increase (L5) from the LTB.
A lower guideline squeezes the math. At 1.9%, a rent-controlled unit gains less than it did under 2.5% just two years ago — while costs like insurance, property tax, and mortgage renewals keep climbing. If a capital project or an extraordinary cost increase justifies more, the L5 / AGI route exists, but it is a formal application with a hearing.
Related guides
Rent Increase Calculator
Exact new rent for 2027 (1.9%) and prior years
N1 Form Guide
How to fill out and serve the rent increase notice
2026 Rent Increase Guide
The 2.1% guideline for 2026 increases
Above-Guideline Increase (L5)
When you can go higher than the cap.
Frequently asked questions
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