Ontario's 2027 Rent Increase Guideline Is 1.9%: What Tenants Should Check

Ontario's rent increase guideline for 2027 is 1.9%. That is the most a landlord can raise rent on most rent-controlled units in 2027 without approval from the Landlord and Tenant Board. The cap does not cover units first occupied after November 15, 2018, and every increase still needs 90 days' written notice.

The number is lower than the 2.1% guideline for 2026 and well below the 2.5% ceiling that applied from 2023 to 2025. For a renter paying $2,100 a month, the difference between 1.9% and the old 2.5% is about $12.60 a month, or roughly $151 over a year. That is not life-changing money, but it is real, and it only helps if you check that the increase you receive actually follows the rules.

This guide is for Ontario tenants who have received, or expect to receive, a notice of rent increase for 2027. It covers how the guideline is set, which units it skips, how to check a notice, and what to do if an increase looks wrong. realmilitaryflix covers money and renting in Canada, and tenant rules like this one decide a large share of what renters actually pay.

What is the Ontario rent increase guideline for 2027?

The 2027 guideline is 1.9%, and it applies to rent increases that take effect from January 1 to December 31, 2027. It sets the maximum yearly increase for most rental units in Ontario. A landlord who wants to go higher has to apply to the Landlord and Tenant Board (LTB) and justify it.

The province publishes the figure on its residential rent increases page, along with every guideline back to 2018. The guideline is based on the Ontario Consumer Price Index, using data from June of one year to May of the next. It is also capped at 2.5% by law, which is why the guideline sat at exactly 2.5% from 2023 through 2025 even though inflation was higher.

Here is how the guideline has moved in recent years, according to the Government of Ontario's own table.

How much can your rent go up in 2027?

To find your maximum increase, multiply your current monthly rent by 0.019. On $1,000 a month, the province's own example works out to $19, for a new rent of $1,019. On $1,800 a month, the maximum is $34.20, for a new rent of $1,834.20.

The timing trap is the effective date. A notice served in October 2026 for an increase that starts on January 1, 2027 must use the 1.9% figure, not the 2.1% guideline that runs through the rest of 2026. At realmilitaryflix, we see this mix-up most often in notices sent in the fall, when the new guideline is already public but the old one is still in force.

The following table shows the 2027 maximum at a few common rent levels.

Which Ontario units are exempt from the guideline?

Some rentals sit outside the guideline entirely. The biggest group is newer housing. Units in new buildings, new additions and most new basement apartments that were first occupied for residential purposes after November 15, 2018 are exempt.

The Government of Ontario lists these exemptions from the guideline:

The turnover rule matters if you are thinking about moving. Ontario has no vacancy control, so a landlord can set any rent for a new tenant. A long-term tenant paying well below market rent gives up that protection when they leave.

Being exempt from the cap does not mean anything goes. Tenants in exempt units are still protected by the 12-month rule and the 90-day notice rule. A landlord in a 2020 building can raise rent by any amount, but only once a year and only with proper notice.

How to check a rent increase notice

A valid increase has to pass three tests, and any one of them can make it unenforceable. Before paying a higher amount, check each one against your lease and your payment records.

Work through these checks in order:

A text message or a verbal heads-up is not enough. The LTB publishes its notices and applications on its forms, filing and fees page, so you can compare the notice you received with the official version.

When landlords can go above 1.9%

A landlord can apply to the LTB for an above-guideline increase. Common grounds include major repairs or capital work, such as a new roof or elevator, and an unusually large jump in municipal taxes. The landlord has to prove the costs, and affected tenants are notified and can attend the hearing.

Even when the board approves an above-guideline increase, the extra amount for capital work is generally capped at 3% above the guideline in any one year. Larger approved costs can be spread over later years. The rules sit in the Residential Tenancies Act, 2006, which is the law the guideline comes from.

Tenants also have a reverse right. If municipal property taxes on the building fall by more than a set amount, rent can be reduced. These reductions are less common, but they are worth knowing about if your city cuts residential tax rates.

What to do if an increase breaks the rules

Start with a short, polite letter or email to your landlord. Point to the specific problem, such as a 2.5% increase on a covered unit or a notice given only 60 days ahead. Many mistakes are honest ones, especially from small landlords who own one or two units.

If that does not fix it, you can file a tenant application with the LTB. The time limit is the key detail. You can dispute an improper increase within 12 months after the new amount was first charged. After that window closes, the increase can stand even if it was never valid.

Keep paying your regular rent while a dispute is underway. Ontario's tenancy rules changed on September 21, 2026, and the notice period on a landlord's N4 notice for unpaid rent dropped from 14 days to 7 days, according to the LTB's September 2026 operational update. Withholding rent over a disputed increase is now riskier than it was a year ago.

How the guideline compares with inflation

The guideline tracks inflation, but it lags behind it. It is set from Ontario consumer prices over a June-to-May window, and it is announced months before it takes effect. When prices cool quickly, renters can end up with an increase that feels high. When prices jump, the 2.5% cap keeps the guideline from following them all the way up.

You can follow the latest price data from Statistics Canada's Consumer Price Index releases. Rent is one of the components it tracks. Asking rents for new listings have also been falling across much of Canada in 2026, which puts the 1.9% cap in context. Some covered tenants may find that staying put, with a capped increase, still beats moving to a new unit at today's asking rent.

The bottom line for Ontario tenants

For most rent-controlled units, the most your rent can rise in 2027 is 1.9%. Check that at least 12 months have passed, that you got 90 days' written notice on the proper form, and that the math is right. If your unit was first occupied after November 15, 2018, the cap does not apply, but the notice rules still do.

Your next step is simple. Find your lease, your last increase notice and your current rent, and run the 1.9% calculation before your 2027 notice arrives. If something does not match, raise it in writing, and remember the 12-month window to dispute it.

Reviewed by the realmilitaryflix editors against the Government of Ontario's guidance, October 2026. This is general information, not legal advice.