New Rules on Rent Increases in Quebec Starting in 2026

New Rules on Rent Increases in Quebec Starting in 2026

Starting in 2026, Quebec will introduce new rules to govern how rent increases are calculated, marking a major reform—the first in nearly 40 years. The government’s goal is to simplify a method long considered complex, make increases more predictable, and prevent sudden hikes that are difficult for tenants to absorb.

Until recently, the calculation was based on 13 criteria. Under the new system, only four variables will be taken into account: changes in municipal property taxes, changes in insurance premiums, 5% of capital expenditures such as maintenance and repairs, and the average Consumer Price Index (CPI) over the past three years. This average will no longer be limited to housing costs but will be based on the overall CPI. Landlords who take out loans for renovation work will also be required to include only the amounts repaid annually, with an amortization period set at 20 years. Any financial assistance received must be deducted from the calculation.

According to the Regroupement des comités logement et associations de locataires du Québec, these new rules would have limited the rent increase recommended by the Administrative Housing Tribunal in 2025 to about 4.5%, instead of 5.9%—an increase that had been described as historic and widely criticized.

For private seniors’ residences, the calculation will be adjusted. The portion related to housing will follow the new rules, while the portion related to services, such as care and assistance, will be indexed to the health care CPI.

Reactions remain mixed. Tenant advocacy groups fear the reform could favor landlords and lead to faster rent increases over the long term. On the other hand, landlord associations welcome what they describe as a structuring reform that could help restore a better balance in the rental market.