On this page
The Ontario rent increase guideline 2027 has been set at 1.9%, down from 2.1% for 2026. It is the maximum most Ontario landlords can raise rent in a 12-month period without approval from the Landlord and Tenant Board, and it applies to increases taking effect on or after January 1, 2027. For a tenant paying $2,000 a month, the cap works out to a maximum increase of $38.
Reported August 2, 2026, based on the Government of Ontario's published rent increase guideline. Tenancy rules vary by unit type — confirm your situation with the Landlord and Tenant Board. This is news reporting and general information, not legal advice.
The 5 key facts
| # | Fact |
|---|---|
| 1 | The Ontario rent increase guideline 2027 is 1.9% — lower than 2026's 2.1% |
| 2 | It applies to increases taking effect on or after January 1, 2027 |
| 3 | Calculated from the Ontario CPI, using June-to-May inflation data |
| 4 | Statutory ceiling of 2.5% — the guideline can never exceed it |
| 5 | Landlords must give 90 days' written notice on Form N1, once per 12 months |
What the guideline means in dollars
The percentage is easier to judge against real rents. Applying 1.9% to common Ontario rent levels:
| Current monthly rent | Maximum increase | New monthly rent |
|---|---|---|
| $1,400 | $26.60 | $1,426.60 |
| $1,800 | $34.20 | $1,834.20 |
| $2,200 | $41.80 | $2,241.80 |
| $2,600 | $49.40 | $2,649.40 |
| $3,000 | $57.00 | $3,057.00 |
The Ontario rent increase guideline 2027 is modest by recent standards, and it is the second consecutive year the guideline has eased — 2.5% in 2025, 2.1% in 2026, and now 1.9%. That reflects the cooling in Ontario's Consumer Price Index over the June 2025 to May 2026 measurement window.
Who the Ontario rent increase guideline 2027 does not cover
This is the detail that most often surprises tenants, and it matters more each year as newer stock enters the market.
The guideline does not apply to rental units first occupied for residential purposes on or after November 15, 2018. Units in that category are exempt from rent control, which means a landlord may propose an increase above 1.9% — or well above it.
Also outside the guideline:
- Most social and supportive housing
- Long-term care homes
- Commercial property
- Units where the landlord obtains an above-guideline increase (AGI) from the Landlord and Tenant Board
Crucially, exemption from the amount does not mean exemption from the process. Even for an exempt unit, a landlord must still provide 90 days' written notice using Form N1, and rent can still only be increased once every 12 months.
Background: how the Ontario rent increase guideline 2027 was calculated
Ontario does not set the guideline by policy choice each year. It is calculated from the Ontario Consumer Price Index published by Statistics Canada, averaged over a fixed 12-month window running from June to May. That figure is then capped by statute at 2.5% — a ceiling introduced to prevent large one-time increases during inflationary periods.
That cap did real work in 2023, when inflation would otherwise have produced a materially higher guideline. It is not binding this year: at 1.9%, the calculated figure sits comfortably below the ceiling.
Timeline
| Date | Development |
|---|---|
| June 2025 – May 2026 | Ontario CPI measurement window for the 2027 guideline |
| June 2026 | Province publishes the Ontario rent increase guideline 2027 at 1.9% |
| From August 2026 | Landlords may begin serving N1 notices for increases effective January 2027 |
| January 1, 2027 | First date the 1.9% guideline applies to |
Why this matters
Rent is the largest fixed cost in most Ontario household budgets, and predictability in that line is worth more than the percentage suggests.
Three practical points for tenants:
- Check the notice before you accept the increase. An N1 delivered with less than 90 days' notice, or a second increase inside 12 months, is not valid. Tenants can dispute an improper increase with the Landlord and Tenant Board.
- Confirm whether your unit is rent-controlled. If the building was first occupied for residential use on or after November 15, 2018, the 1.9% cap does not protect you — and knowing that before a renewal conversation is far better than after.
- An above-guideline increase requires Board approval. A landlord citing renovations or higher taxes cannot simply apply a larger increase; they must apply and win.
For landlords, the Ontario rent increase guideline 2027 is a ceiling and not an obligation. With CMHC reporting purpose-built rental vacancy above its 10-year average and asking rents easing in several major markets, some will hold rents flat rather than risk turnover.
The wider context is that the Ontario rent increase guideline 2027 governs only existing tenancies. When a unit turns over, there is no cap on what the next tenant can be asked to pay — which is why market asking rents and guideline increases can move in opposite directions.
Key takeaways
- The Ontario rent increase guideline 2027 is 1.9%, down from 2.1% in 2026.
- It applies to increases taking effect on or after January 1, 2027.
- On $2,000 rent, the maximum increase is $38 per month.
- Units first occupied for residential purposes on or after November 15, 2018 are exempt.
- 90 days' written notice on Form N1 is required, and rent can rise only once per 12 months.
- The guideline is calculated from Ontario CPI and capped by law at 2.5%.
What tenants should do now
If you receive an N1 this autumn, check three things before signing anything: the effective date is at least 90 days out, the last increase was at least 12 months ago, and the percentage matches the Ontario rent increase guideline 2027 figure of 1.9% unless your unit is exempt. If any of those fail, the increase can be challenged at the Landlord and Tenant Board.
Tenants facing a genuine shortfall when the increase lands should look at municipal rent banks and provincial emergency assistance before credit — both are cheaper than borrowing. Where a gap remains, our rent payment financing page and loan calculator can help size a manageable payment, and our Ontario lending regulations guide explains the rules that apply to any credit you take on.