Ontario’s 2027 Rent Increase Guideline Is 1.9%: What Tenants and Landlords Need to Know

On 25 July 2026 the Ontario Gazette published the official rent increase guideline for 2027: 1.9%. That figure, confirmed on the Ministry of Municipal Affairs and Housing page at ontario.ca, is the maximum most landlords can raise the rent of an existing tenant without special approval from the Landlord and Tenant Board (LTB). It is lower than the 2.1% guideline that applied for 2026 and the lowest annual figure in several years.

This post explains what the new rate means in practical terms for tenants and landlords, who is covered, the notice rules, and the exceptions.

What 1.9% looks like in dollars

The guideline is a percentage of the current lawful rent. A few examples:

• Current rent $1,500 → maximum increase $28.50 → new rent $1,528.50
• Current rent $2,000 → maximum increase $38.00 → new rent $2,038.00
• Current rent $2,500 → maximum increase $47.50 → new rent $2,547.50

The increase can take effect only once at least 12 months have passed since the last lawful increase or the start of the tenancy. Landlords must use the prescribed Form N1 (Notice of Rent Increase) and give at least 90 days’ written notice before the new rent starts.

Because of the 90-day rule, the earliest a landlord can serve a notice for a 1 January 2027 increase is approximately 3 October 2026.

How the guideline is set

Under section 120 of the Residential Tenancies Act, 2006 and Ontario Regulation 516/06, the guideline is calculated from the average Ontario Consumer Price Index for the 12-month period ending in May of the previous year (June 2025–May 2026 for the 2027 figure). The law caps the guideline at 2.5% so that tenants are protected from large one-year jumps even if inflation spikes.

Who is covered — and who is not

The 1.9% ceiling applies to most private residential rental units that are subject to rent control under the RTA: houses, apartments, basement apartments, condominiums, care-home rent portions, mobile homes and land-lease communities.

Important exceptions include:

• Units in buildings, additions or most new basement apartments first occupied for residential purposes after 15 November 2018 (these are generally exempt from the guideline).
• Vacant units between tenancies — a new tenant and landlord can negotiate a starting rent without the guideline applying.
• Community housing, long-term care homes and commercial premises (different rules apply).

Landlords claiming an exemption should keep records (building permits, occupancy permits, invoices, photographs) in case the claim is challenged at the LTB.

Above-guideline increases

Even for a rent-controlled unit a landlord may seek more than 1.9% by applying to the LTB for an above-guideline increase (AGI). Typical grounds include significant capital expenditures, extraordinary increases in municipal taxes or utilities, or new security services. Tenants receive notice of the application and have the right to respond.

What tenants should check

1. Confirm the notice is on Form N1 and that you have the full 90 days.
2. Multiply your current rent by 0.019. If the proposed increase is higher and your unit is not exempt, the notice may be challengeable.
3. You generally have 12 months from the date the higher amount was first charged to dispute an improper increase at the LTB.

What landlords should do

• Use only Form N1 and respect the 12-month and 90-day rules.
• Track the anniversary date carefully for every tenancy.
• For any amount above 1.9% on a controlled unit, file an AGI application first.
• If claiming a post-2018 exemption, keep clear documentary proof.

Official sources

• Ontario rent-increase page: ontario.ca/page/residential-rent-increases
• Ontario Gazette, Volume 159, Issue 30 (25 July 2026)
• Landlord and Tenant Board forms and information: tribunalsontario.ca/ltb

Get help if you need it

Rent notices remain one of the most frequent sources of confusion between landlords and tenants. If you have received an N1 that looks incorrect, or if you are a landlord preparing a lawful increase or AGI, JSR Legals can review the notice or application and explain the options available under the Residential Tenancies Act. Contact us at info@jsrlegals.ca or (647) 286-4266.

This article provides general information based on the publicly available Ontario Gazette notice and ontario.ca guidance current as of early August 2026. It is not legal advice for any specific situation. Rules, forms and procedures can change. Always verify the latest requirements on the official Ontario and Tribunals Ontario websites and consult a licensed paralegal or lawyer about your circumstances.