What this post covers:
1. The official 2027 rent increase guideline and how it compares to recent years
2. Which rental units are actually covered — and which are exempt
3. Exact notice requirements, deadlines, and what to do about an above-guideline increase
1. The official 2027 rent increase guideline and how it compares to recent years
2. Which rental units are actually covered — and which are exempt
3. Exact notice requirements, deadlines, and what to do about an above-guideline increase
Sound familiar?
You got a rent increase notice and Googled "Ontario rent increase guideline 2027" to check if it's legal — but the number alone doesn't tell you the whole story. Whether 1.9% even applies to your unit depends on one specific date most tenants have never heard of. Here's the full picture, for landlords and tenants alike.
1.9% increase for 2027, But Not Every Unit Is Covered
The one date that matters
Ontario's rent increase guideline for 2027 is 1.9%, effective for increases taking effect between January 1 and December 31, 2027. But the guideline only applies to units that were first occupied for residential purposes on or before November 15, 2018. If your unit was first occupied after that date, the guideline doesn't legally cap your rent at all — your landlord can propose any increase, subject only to your right to negotiate or decline a lease renewal.
How the Guideline Is Calculated
The guideline is set annually by Ontario's Minister of Municipal Affairs and Housing under the Residential Tenancies Act, 2006. It tracks the Ontario Consumer Price Index, using the average change from June of the prior year to May of the current year — and by law, it is capped at 2.5% no matter how high inflation runs.
Guideline History: A Cooling Trend
| Year | Guideline |
|---|---|
| 2021 | 0% (rent freeze) |
| 2024 | 2.5% (legal cap) |
| 2025 | 2.5% (legal cap) |
| 2026 | 2.1% |
| 2027 | 1.9% |
2021
2024
2025
2026
2027
Source: Ontario Ministry of Municipal Affairs and Housing, residential rent increase guideline, published June 2026.
Which Units Are Exempt From the Guideline
New buildsAny unit first occupied for residential purposes after November 15, 2018 is exempt from the guideline entirely.
Social & community housingSubject to their own rent-geared-to-income rules, not the guideline.
Nursing & retirement homesCovered under separate legislation with different rules.
Commercial & vacant unitsNot covered — a new tenancy can be set at whatever rate the market allows.
What a 1.9% Increase Actually Looks Like
| Current Rent | Increase | New Rent |
|---|---|---|
| $1,800 | $34.20 | $1,834.20 |
| $2,000 | $38.00 | $2,038.00 |
| $2,500 | $47.50 | $2,547.50 |
The guideline applies to your lawful rent only — not rent bundled with parking, storage, or separately billed utilities. Applying 1.9% to a bundled total overcharges you.
Notice Requirements for Landlords
1
Confirm at least 12 months have passed since the tenant's last rent increase.
2
Serve a completed Form N1 (Notice of Rent Increase) in writing.
3
Give at least 90 days' notice before the increase takes effect — for a January 1, 2027 increase, the N1 must be served by October 3, 2026.
Unused guideline room doesn't carry forward to future years — you can't "save up" a missed increase.
Above-Guideline Increases (AGI)
A landlord who needs to raise rent beyond 1.9% on a guideline-covered unit must apply to the Landlord and Tenant Board for an Above Guideline Increase. This is typically only granted for eligible capital expenditures (like a new roof or elevator), extraordinary increases in municipal taxes, or certain security service costs — not simply to keep pace with market rents.
What to Check When You Receive a Notice
- ▸Was your unit first occupied on or before November 15, 2018? If not, the guideline doesn't legally apply.
- ▸Is the increase calculated on your lawful rent only, not a bundled total?
- ▸Did you receive proper written notice, at least 90 days in advance?
- ▸Has it been at least 12 months since your last increase?
- ▸If it's above 1.9% on a covered unit, has your landlord shown LTB approval for an AGI?
Frequently Asked Questions (FAQs)
Q. Does the 1.9% guideline apply to all rental units in Ontario?
No — only units first occupied on or before November 15, 2018. Newer units are exempt from the guideline entirely.
Q. What happens if my unit isn't covered by the guideline?
Your landlord can propose any increase amount. Your main protections are negotiating before signing a renewal and declining an increase you don't accept — though this may mean not renewing the lease.
Q. Can my landlord increase rent by more than 1.9% in 2027?
Only with LTB approval for an Above Guideline Increase, or if your unit is exempt from the guideline in the first place.
Q. How much notice must my landlord give before a rent increase?
At least 90 days, in writing, using Form N1.
Q. Can my rent go up more than once a year?
No — for guideline-covered units, increases are limited to once every 12 months.
Q. Where can I get help if I think an increase is illegal?
Contact the Landlord and Tenant Board directly, or a local tenant rights legal clinic, to review your specific notice.
Key Takeaways
1.9% for 2027down from 2.1% in 2026
Nov 15, 2018 cutoffdecides if you're even covered
90 days + Form N1required for a lawful increase
AGI is the exceptionnot a shortcut around the cap
Your turn
Did you know your unit's exemption status depends on that November 2018 date before reading this? Share your experience with a rent increase notice in the comments.
Official Resources
Ontario's Official Rent Increase Guideline Page →
File or Check a Case with the Landlord and Tenant Board →
Download Form N1 (Notice of Rent Increase) →
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This post reflects publicly available program information current as of September 2026. Guideline figures, exemptions, and forms can change — always confirm current details directly with the Landlord and Tenant Board before acting. This is not legal advice.