New Rent Law: Caps, Just Cause Evictions, and Deposits

The new rent laws rolling out across the country over the past several years have given tenants stronger protection against steep increases, surprise evictions, and inflated deposits, but what you actually get depends heavily on where you live. In jurisdictions that have adopted them, the main changes cap annual rent hikes, require your landlord to have a legally recognized reason to end your tenancy, limit security deposits and late fees, and tighten the disclosures a landlord must give you before you sign. Federal fair housing rules apply on top of all of that, no matter the state.

The sections below walk through each protection, who it covers, and where it stops.

Caps on Annual Rent Increases

Where rent caps exist, they typically limit annual increases to a base percentage plus the local change in the Consumer Price Index, with a hard ceiling. A common structure is 5% plus regional CPI, or 10%, whichever is lower. The increase is calculated from the lowest rent charged during the previous 12 months, not whatever you were paying most recently.

These caps are the exception, not the rule. As of early 2026, roughly 36 states actively preempt local governments from passing rent control ordinances, so caps legally exist in only a minority of states, concentrated in high-cost coastal markets. If you live in a preemption state, your landlord can generally raise rent by any amount as long as proper notice is given and the increase isn’t retaliatory or discriminatory.

Even inside jurisdictions that cap rent, certain units are usually exempt. Newer construction is the biggest carve-out: units with a certificate of occupancy issued within the past 15 years are frequently excluded so developers can recoup building costs. Single-family homes not owned by a corporation, and duplexes where the owner lives in one unit, are also typically exempt. When an exemption applies, the landlord is usually required to tell you so in writing.

Notice Before a Rent Increase

Caps aside, nearly every state requires written notice before a rent increase takes effect. For month-to-month tenancies the standard is 30 days, though some states require 45 or 60, and a few jurisdictions with rent stabilization demand longer notice for larger increases. An increase announced without the required notice generally isn’t enforceable until proper notice has been given and the full period has run.

Fixed-term leases work differently. The rent is locked for the term, and your landlord can’t raise it mid-lease unless the lease itself has a specific provision allowing it. Notice rules kick in when the lease ends and the landlord wants to set a new rate for renewal or month-to-month.

Just Cause Eviction

A growing number of jurisdictions now require landlords to have a legally recognized reason to end a tenancy. That ends the older practice of simply declining to renew or issuing a no-reason termination. Recognized reasons fall into two categories, and the difference matters because it changes what your landlord owes you.

At-Fault Grounds

At-fault means you did something that violated the lease or the law. The most common grounds are nonpayment of rent, substantial property damage, criminal activity on the premises, and serious nuisance affecting other residents. In most jurisdictions the landlord must first serve written notice giving you a set number of days to fix the problem or move out. For nonpayment, that notice period is often three days. If you pay what’s owed or cure the violation inside that window, the eviction cannot proceed. Only after the notice period runs out can the landlord file in court.

No-Fault Grounds and Relocation Pay

No-fault covers situations where you haven’t done anything wrong, but the landlord has a legitimate reason to reclaim the unit. Typical grounds include the owner or an immediate family member moving in, pulling the unit off the rental market entirely, or substantial renovations that require the unit to be vacant. The bar is higher than many landlords expect. Owner move-in evictions, for example, usually require the owner to actually live in the unit for a minimum period, often 12 months, or face penalties.

When a no-fault eviction occurs, many jurisdictions now require the landlord to pay relocation assistance. The amount varies. Some areas set it at one month’s rent; others use sliding scales based on tenancy length, whether you have minor children, or whether you’re elderly or disabled. In some high-cost cities, relocation payments for long-term tenants can exceed $15,000. A no-fault notice issued without the required assistance may be invalid.

Security Deposit Limits and Return Rules

About a dozen states now cap security deposits at one month’s rent regardless of whether the unit is furnished. Others set the ceiling at one and a half or two months. A smaller number of states impose no cap at all. Knowing your state’s cap before you sign can keep you from overpaying upfront.

The return process has tightened too. After you move out, your landlord must return the deposit within a set number of days that varies by state. The fastest deadlines are 14 days; the slowest run to 60. Any amount withheld has to come with an itemized statement listing each deduction and the actual cost. Deductions are limited to unpaid rent and damage beyond normal wear and tear. Ordinary carpet aging, minor wall scuffs, and faded paint don’t qualify. Landlords who miss the deadline or skip the itemized statement often face penalties, including liability for double or triple the deposit amount in some jurisdictions.

Deposit disputes are usually small enough for small claims court, which doesn’t require a lawyer and keeps filing fees modest.

Interest on Held Deposits

A growing number of jurisdictions require landlords to pay interest on deposits held longer than a year. Where this applies, the landlord either places the deposit in an interest-bearing account and pays you the actual earnings, or pays interest at a rate set annually by a local housing authority. Landlords who ignore the rule may forfeit the right to keep any portion of the deposit.

Late Fee Limits

Roughly 16 states now cap how much your landlord can charge when rent is late. Percentage-based caps generally range from 4% to 10% of the overdue rent. A few states use flat dollar caps or a combination. Some cap late fees at $50 or 5% of monthly rent, whichever is less. Many states have no statutory cap at all, which means your lease terms control and the only real limit is whether a court would find the fee “unreasonable.”

Even without a cap, most states require a grace period, commonly five days after the due date, before a late fee can be charged. A fee imposed before the grace period expires generally isn’t enforceable. Leases sometimes include fee provisions that exceed what’s legally permitted, and paying those fees voluntarily doesn’t make them valid.

Habitability and Repairs

Every state recognizes some version of the implied warranty of habitability. Your landlord must keep the property safe and fit to live in regardless of what the lease says. At a minimum that includes working plumbing, electricity, heating, weatherproofing, and structural integrity. Many jurisdictions have expanded the baseline to cover mold remediation, indoor air quality, and access to cooling during extreme heat.

Repair timing depends on severity. Emergencies that threaten health or safety, like no heat in winter or a gas leak, typically require action within 24 hours. Less urgent problems generally must be addressed within a reasonable timeframe, which courts usually read as 14 to 30 days depending on complexity.

If your landlord ignores a repair request, you usually have several options. You can report the violation to local housing or building code enforcement. You can withhold rent in some states. And roughly half of U.S. states allow “repair and deduct,” where you hire someone to fix the problem and subtract the cost from your next rent payment. Repair and deduct comes with dollar limits and procedural requirements you have to follow precisely to avoid an eviction filing.

Anti-Retaliation and Illegal Lockouts

The vast majority of states now have anti-retaliation statutes on the books. Only a handful don’t. Where these laws apply, your landlord can’t raise rent, cut services, or start eviction proceedings because you reported a code violation, complained about unsafe conditions, joined a tenant organization, or exercised another legal right.

Many of these laws create a presumption of retaliation if the landlord takes negative action within a set window after your protected activity. That window ranges from 90 to 180 days depending on the jurisdiction. Inside that period, the burden shifts to the landlord to prove the action was motivated by something other than your complaint. Landlords who can’t point to a legitimate, documented reason tend to lose these cases.

Self-help eviction is a separate line a landlord cannot cross. If your landlord changes the locks, removes your belongings, shuts off utilities, or takes off doors or windows to force you out, that’s illegal in virtually every jurisdiction. It doesn’t matter how much rent you owe. The only legal way to remove a tenant is a court-ordered eviction carried out by a sheriff or constable. Courts routinely award damages that exceed lost rent, attorney fees, and in cases of willful conduct, punitive damages. Some jurisdictions impose criminal penalties including fines and short jail terms. If this happens, call the police, document everything with photos and video, and file a complaint with your local court. Many courts offer expedited emergency relief for illegal lockouts.

Required Disclosures From Your Landlord

Modern rent laws require landlords to be upfront about the legal status of your unit. In jurisdictions with rent stabilization or just cause protections, landlords must tell you in writing whether your unit is covered or exempt. Skipping that notice often means the protections apply by default, even if the unit would otherwise qualify for an exemption.

Many jurisdictions also require landlords to provide information about tenant rights at the start of the lease or at renewal. Some require a copy of the specific local ordinances governing the tenancy. Others mandate disclosure of the building’s ownership structure, the property manager, and contact information for filing complaints. Landlords who skip these may face administrative fines and can be barred from implementing rent increases until they come into compliance.

Lead Paint in Pre-1978 Housing

If your rental was built before 1978, federal law requires your landlord to give you specific lead-based paint disclosures before you sign. The landlord must provide an EPA-approved lead hazard pamphlet, disclose any known lead-based paint or lead hazards in the unit, and share any available inspection reports.1Office of the Law Revision Counsel. United States Code Title 42 – 4852d The lease must also include a lead warning statement in large type explaining the health risks, particularly for young children and pregnant women.

Enforcement has teeth. A landlord who knowingly skips these disclosures faces civil penalties per violation and can be held liable for three times the actual damages you suffer.1Office of the Law Revision Counsel. United States Code Title 42 – 4852d You’re also entitled to attorney fees and court costs if you prevail. Landlords must keep records of these disclosures for at least three years.

Federal Fair Housing Protections

Whatever your state or local rent law looks like, federal law prohibits housing discrimination based on seven protected characteristics: race, color, religion, sex, national origin, familial status, and disability.2Office of the Law Revision Counsel. United States Code Title 42 – 3604 This covers every stage of the rental process, from advertising and application screening through lease terms and eviction. A landlord who refuses to rent to families with children, charges higher deposits based on national origin, or refuses reasonable accommodations for a tenant with a disability violates federal law.

For tenants with disabilities, the Fair Housing Act requires landlords to allow reasonable modifications to the unit at the tenant’s expense and to make reasonable accommodations in rules and policies.2Office of the Law Revision Counsel. United States Code Title 42 – 3604 A common example: a no-pets policy must be waived for a tenant who needs an assistance animal. Complaints go to HUD’s Office of Fair Housing and Equal Opportunity, which investigates at no cost to you.3U.S. Department of Housing and Urban Development. Fair Housing Rights and Obligations

Source of Income

Federal law does not prohibit landlords from refusing tenants who pay with housing vouchers or other government assistance. A growing number of states and cities have closed that gap on their own. An estimated 21 or more states plus numerous municipalities now make it illegal to reject an applicant solely because they use a Section 8 voucher or similar subsidy. If you use a voucher and are turned away, check whether your state or city has source-of-income protections before assuming the refusal was legal.

Survivors of Domestic Violence

Under the Violence Against Women Act, tenants in federally assisted housing who are survivors of domestic violence, dating violence, sexual assault, or stalking cannot be evicted because of abuse committed against them.4Office of the Law Revision Counsel. United States Code Title 34 – 12491 The law also allows lease bifurcation, meaning a landlord can remove the abuser from the lease without displacing the survivor. Survivors can request emergency transfers for safety reasons, and those with Section 8 vouchers must be allowed to relocate with continued assistance.5U.S. Department of Housing and Urban Development. Violence Against Women Act (VAWA) These federal protections apply specifically to housing receiving federal subsidies. Many states have enacted parallel protections for tenants in private-market housing.

Putting Your Rights to Use

Knowing your rights matters less than knowing how to use them. Document everything in writing. Every maintenance request, every conversation about rent, every notice you receive should be preserved. Send repair requests by email or certified mail so you have a timestamped record. If your landlord communicates verbally, follow up with a written summary: “Just confirming our conversation today where you agreed to fix the leak by Friday.”

When a landlord violates your rights, the usual first step is a written demand letter citing the specific law and requesting compliance within a set timeframe. Many disputes resolve at that stage because the landlord recognizes you know the law. If that doesn’t work, your options generally include filing a complaint with local housing or building code enforcement, filing a complaint with HUD for fair housing violations, or taking the matter to court. Small claims court keeps costs low for smaller monetary disputes like unreturned deposits or illegal fees. For more serious issues like illegal evictions or habitability failures, consulting a tenant rights attorney is worth it, especially since many tenant protection statutes let you recover attorney fees if you win.