Quick answer

In 2026, a landlord may increase the rent of a covered residential unit by no more than 1% for the year if:

The monthly rent was ₱10,000 or less;
The same tenant continues to occupy the unit or renews the lease; and
The increase is imposed between January 1 and December 31, 2026.

This nationwide ceiling comes from National Human Settlements Board Resolution No. 2024-01, issued under the continuing authority granted by the Rent Control Act of 2009, Republic Act No. 9653.

The 1% ceiling does not generally apply when the unit was already renting for more than ₱10,000, when it becomes genuinely vacant and is leased to a new tenant, or when it is a new residential unit constructed after the resolution was approved. Even then, the landlord must still follow the lease agreement, the Civil Code, and lawful eviction procedures.

The controlling rule for 2026

NHSB Resolution No. 2024-01 covers rent regulation from January 1, 2025 through December 31, 2026. The applicable ceilings are:

Period	Covered monthly rent	Maximum increase while occupied by the same tenant
January 1–December 31, 2025	₱10,000 or less	2.3%
January 1–December 31, 2026	₱10,000 or less	1%

The 2.3% figure was the ceiling for 2025. It is not the ceiling for an increase imposed in 2026.

For example:

Lawful 2025 monthly rent	Maximum 2026 increase	Maximum resulting rent
₱5,000	₱50	₱5,050
₱8,000	₱80	₱8,080
₱9,500	₱95	₱9,595
₱10,000	₱100	₱10,100

A lawful 1% increase from ₱10,000 may result in rent of ₱10,100. What matters for coverage is the applicable rent before the 2026 increase and the other circumstances of the tenancy.

A landlord is not required to impose the full permitted increase. The lease may provide for no increase or a smaller one.

Which residential units are covered?

Republic Act No. 9653 defines a residential unit broadly. It can include:

A house or apartment;
A condominium unit used as a residence;
A dormitory or boarding house;
A room or bedspace;
Land on which another person’s dwelling stands; and
Certain mixed-use premises where the tenant and family actually live and principally use the property as their dwelling.

Hotels, hotel rooms, motels, and motel rooms are excluded from the statutory definition.

The original 2009 law used different rent thresholds depending on location. Section 6, however, authorized the housing authority to continue rent regulation, determine the covered units, and adjust the annual ceiling. For 2025–2026, NHSB Resolution No. 2024-01 uses a ₱10,000-or-less threshold for covered residential units without retaining the former ₱5,000 provincial threshold.

Coverage can become fact-sensitive where a property is partly commercial, the rent bundles parking or other charges, several occupants have separate agreements, or the identity of the legal tenant has changed. The written lease, receipts, actual use of the property, and payment history should be examined together.

Renewing the lease does not automatically create a new tenant

The ceiling applies for as long as the unit is occupied by the same lessee. Signing a renewal or replacement contract does not, by itself, turn a continuing tenant into a new tenant.

If the same tenant remains in continuous possession, a landlord should not treat the paperwork alone as a vacancy to bypass the ceiling. Conversely, a genuine transfer to a different tenant may produce a different result, even if that person is related to or previously lived with the former tenant. The names on the contracts, payment records, possession of the unit, and surrounding facts will matter.

When a fixed-term lease expires but the landlord allows the tenant to remain and continues accepting rent, an implied renewed lease may arise under Articles 1670 and 1687 of the Civil Code. The precise terms and duration of that implied lease depend on the former agreement and how rent is paid. Continued occupancy does not erase the current statutory ceiling for a covered same-tenant arrangement.

When the 1% ceiling does not apply

The existing rent is above ₱10,000

A residential unit already renting for more than ₱10,000 falls outside the particular ceiling in NHSB Resolution No. 2024-01. That does not mean a landlord may disregard an existing contract.

Under Articles 1159 and 1306 of the Civil Code, a valid lease binds the parties. During a fixed term, the landlord generally cannot impose a unilateral increase unless the lease permits it or the tenant agrees. Any escalation clause must be read according to its actual wording.

At renewal, the parties may negotiate a new rate, subject to other applicable laws. If no agreement is reached, the consequences depend on the lease term, continued possession, acceptance of rent, and proper termination or ejectment procedures.

The unit becomes genuinely vacant

When the unit becomes vacant, the landlord may set the initial rent for the next tenant. The former tenant’s controlled rate does not permanently attach to the property.

A staged or paper-only “vacancy” intended to disguise the same tenant’s uninterrupted occupancy may be challenged based on the evidence.

The unit is newly constructed

NHSB Resolution No. 2024-01 states that its rental regulation does not apply to new residential units offered for lease that were constructed after the resolution’s approval on December 23, 2024. Documents such as building and occupancy permits, construction records, and the first lease may be important in determining whether this exclusion applies.

A renovated older unit is not necessarily a newly constructed residential unit. The extent and legal character of the work must be established from the documents and facts.

Student accommodations

When a boarding house, dormitory, room, or bedspace is offered for rent to students, the rent may not be increased more than once a year. Whether an accommodation falls within this rule depends on its actual operation and clientele, not merely the label used by the owner.

The lease agreement still matters

Rent control sets a maximum; it does not automatically amend every other lease term.

Check the contract for:

The exact rent and due date;
The lease period and renewal process;
Any escalation clause;
Notice requirements;
Charges for utilities, association dues, parking, or services;
Deposit terms; and
The identity of the tenant and landlord.

A landlord cannot ordinarily evade the ceiling by renaming part of the basic rent as a compulsory “maintenance,” “administrative,” or similar charge. Whether a charge is truly separate depends on what it pays for, whether it existed before, how it is computed, and what the contract says.

For covered units, Republic Act No. 9653 also limits the amount initially demanded to one month’s advance rent and two months’ deposit. The deposit must be kept in a bank under the lessor’s account name during the lease, and accrued interest must be returned when the lease ends, subject to lawful deductions for unpaid rent, utilities, or property damage in an amount corresponding to the actual loss.

Notice of an increase

Neither the current resolution nor Republic Act No. 9653 creates a universal rule that every rent increase becomes valid after a particular number of notice days. The required notice may come from the lease agreement or from the nature and timing of the tenancy.

A landlord should give a clear written notice stating:

The present rent;
The proposed new rent;
The percentage and peso increase;
The effective date; and
The contractual or legal basis.

For a fixed-term lease with no applicable escalation clause, advance notice alone does not create a right to change the rent before the term ends.

Tenants should not rely only on a verbal demand. Ask for the proposed increase in writing before paying or signing anything.

What a tenant should do after receiving an increase

Confirm the year and effective date. A 2026 increase is subject to the 2026 rule, not the 2025 percentage.
Check the previous lawful rent. Use the rent actually due before the increase, supported by the lease and receipts.
Determine whether the unit is covered. Confirm that the relevant rent was ₱10,000 or less and that the same tenant remains in occupancy.
Calculate 1%. Multiply the lawful monthly rent by 0.01 and add the result to the old rent.
Review the lease. A contract may provide stronger protection, such as a fixed rate through a stated end date.
Respond in writing. Identify the amount you believe is lawful, attach the calculation, and ask the landlord to correct any excess.
Continue paying the undisputed lawful rent on time. Do not simply stop paying. Nonpayment may create arrears and expose the tenant to an ejectment case.
Obtain proof of every payment. Use traceable payment methods and request signed receipts showing the month covered.

If the landlord refuses to accept the agreed rent, Republic Act No. 9653 permits a covered tenant to deposit it by way of consignation in court or, with notice to the landlord, with the city or municipal treasurer, barangay chairperson, or a bank in the landlord’s name. The initial deposit must be made within one month after the refusal, followed by deposits within ten days of every current month. Because defective consignation can have serious consequences, obtain legal advice before relying on this process.

Evidence to preserve

Keep copies of:

Every lease, renewal, addendum, and house rule;
Rent-increase notices, text messages, emails, and chat records;
Official receipts, bank transfers, e-wallet records, and deposit slips;
Proof of the previous lawful rent;
Advertisements or messages describing the unit and included charges;
Utility and association-dues statements;
Building or occupancy records if new-construction status is disputed;
Photographs, inventories, and inspection reports; and
Notices to vacate, demand letters, barangay records, and court papers.

Save digital copies outside the rented unit. Create a dated written note after important verbal conversations.

Common mistakes

Applying the 2025 ceiling of 2.3% to a 2026 increase;
Assuming every residential lease is rent-controlled regardless of price;
Treating a renewal signed by the same continuing tenant as an automatic vacancy;
Believing that an increase is valid merely because the tenant was given notice;
Ignoring a fixed-term lease that promises a fixed rate;
Hiding extra rent in newly invented compulsory fees;
Withholding all rent after disputing only the excess;
Paying in cash without obtaining a receipt;
Signing a backdated agreement or waiver without understanding it; and
Ignoring a barangay summons, demand letter, or court summons.

Remedies and where to seek help

Begin with a written request for correction. If the dispute remains unresolved, the parties may use barangay conciliation when the controversy falls within the Lupon’s authority. Under Sections 408 and 412 of the Local Government Code, prior barangay proceedings are a condition before filing certain court or government actions, subject to exceptions—including disputes involving juridical entities, parties residing in different cities or municipalities, and cases requiring urgent judicial relief.

DHSUD or its regional office can provide guidance on the applicable housing regulation. Its role should not be confused with a court judgment ordering reimbursement, damages, or eviction.

Depending on the facts, relief may require:

Barangay mediation or conciliation;
A civil claim to recover overpayments or enforce the lease;
A defense or counterclaim in an ejectment case;
A criminal complaint for a proven violation of Republic Act No. 9653; or
Urgent court relief against unlawful interference with possession.

Section 13 of Republic Act No. 9653 provides, upon conviction, a fine of ₱25,000 to ₱50,000, imprisonment of one month and one day to six months, or both. Liability is not automatic: the alleged violation must be established through the proper proceedings, and the provision’s application to the particular conduct should be assessed by counsel or the prosecuting authorities.

Qualified persons may seek assistance from the Public Attorney’s Office. For regulatory information and regional-office details, consult the Department of Human Settlements and Urban Development.

When legal help is urgent

Seek prompt legal assistance if:

The landlord changes the locks, removes belongings, cuts utilities, or uses threats to force the tenant out;
A tenant receives a formal demand to pay or vacate, barangay summons, prosecutor’s subpoena, or court summons;
Rent is being refused and consignation may be necessary;
The landlord claims the unit is vacant or newly constructed despite contrary facts;
The increase is combined with eviction, harassment, discrimination, or retaliation;
Several compulsory charges have suddenly been added; or
A filing, answer, or appeal deadline may expire.

A landlord generally must use lawful judicial ejectment procedures. Sale or mortgage of a covered residential unit is not, by itself, a ground to eject the tenant under Section 10 of Republic Act No. 9653.

Frequently asked questions

Can a landlord increase ₱8,000 rent to ₱9,000 in 2026?

Not if the same tenant remains in a covered unit. The maximum 2026 increase would ordinarily be ₱80, making the new monthly rent ₱8,080.

Can the landlord impose two separate 0.5% increases in 2026?

The total cannot exceed the applicable 1% ceiling. For student boarding houses, dormitories, rooms, and bedspaces, an increase may not be imposed more than once a year.

Does a new one-year contract remove rent control?

No. If it is a renewal involving the same tenant in continuous occupancy, changing the document does not by itself remove the statutory ceiling.

Can the rent exceed ₱10,000 after the lawful increase?

Yes. A tenant paying exactly ₱10,000 may receive the permitted 1% increase to ₱10,100. The increase must still satisfy the same-tenant and other coverage requirements.

Can a landlord raise the rent during a fixed lease?

Only if the lease validly permits the increase or the tenant agrees, subject to the statutory ceiling where rent control applies. A unilateral demand cannot ordinarily override a binding fixed-rate lease.

Can a tenant stop paying while disputing the increase?

That is risky. The safer course is generally to tender the undisputed lawful rent on time and document the tender. If the landlord refuses it, obtain advice immediately about the statutory deposit or consignation procedure.

Is every rent increase above 1% illegal?

No. The 1% ceiling is specific to covered 2026 tenancies. A unit above the threshold, a genuine new tenancy after vacancy, or an excluded new residential unit may be governed primarily by the contract and the Civil Code.

What happens after December 31, 2026?

NHSB Resolution No. 2024-01 ends on that date. The rule for 2027 will depend on any new law or official NHSB/DHSUD issuance. Do not assume that the 1% ceiling will automatically continue.

Official sources

This article provides general legal information, not advice for a particular dispute. Coverage and remedies may change based on the lease, payment history, identity of the parties, use of the premises, and procedural posture. Official sources were checked through August 27, 2026.