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06/17/2026DHSUD Rules on Rent Increase in the Philippines 2026 - An Explainer
bySuzy RentPublished:January 04, 20265 min read
If you are a landlord or property manager planning to increase your rental fees in 2026, then this article is made for you. We'll cover the 2026 Rent Control resolution from the DHSUD National Human Settlements Board, which units are covered by rent control, which are exempt, and how market conditions affect pricing decisions.
What are the DHSUD Rent Increase Rules for 2026?
For 2026, the government has set a rent increase cap of one percent (1%) for certain residential units. This rule applies only to specific cases and does not cover all rental properties.
According to guidance issued through the Department of Human Settlements and Urban Development and the National Human Settlements Board, residential units with a monthly rent of ten thousand pesos (PHP 10,000.00) or below, occupied by the same tenant as of 2025 and continuing into 2026, may only increase rent by up to one percent for the year 2026.
This follows the 2025 rent increase cap of 2.3 percent, which was already a reduction from the previous year. These limits are intended to protect tenants in lower-rent segments.
Which Units Are Covered by Rent Control in 2026
The NHSB Resolution 2024-01 for Rent Control Covering the period January 1, 2025 to December 31, 2026 states:
WHEREFORE, pursuant to the foregoing, the National Human Settlements Board (NHSB) hereby RESOLVES, as it is hereby RESOLVED, to continue the rental regulation for any residential unit with monthly rental rate of PHP 10,000 and below from January 1 to December 31, 2025, that for as long as the unit is occupied by the same lessee, the rent shall not be increased by more than 2.3 percent for the same period.
RESOLVED FURTHER, that for any residential units with monthly rental rate of PHP 10,000 and below from January 1 to December 31, 2026, and that for as long as the unit is occupied by the same lessee, the rent shall not be increased by more than one percent for the same period.
This means that any residential unit with a monthly rental rate of PHP 10,000 below is restricted to a one percent (1%) monthly rent increase if:
- You have an existing tenant in 2025 with a rental rate of PHP 10,000 or below or;
- You'll be leasing your rental property in 2026 for PHP 10,000 or below.
If your unit falls within these thresholds and the same tenant is renewing in 2026, the one percent rent increase cap applies.
How many times can you increase rent in 2026?
The NHSB Resolution 2024-01 for Rent Control Covering the period January 1, 2025 to December 31, 2026 states:
PROVIDED, that when the residential unit becomes vacant in 2025 or 2026, the lessor may set the initial rent for the next lessee, provided that in case of boarding houses, dormitories, rooms, and bed spaces offered for rent to students, no increase in rent more than once a year shall be allowed;
The resolution states that if your property is classified as a dormitory, boarding house, room, and bedspace offered to rent for students, you may only increase rent once a year.
Which Units Are Exempt From the 2026 Rent Cap
If your unit’s monthly rent is above ten thousand pesos, it is generally not covered by the rent increase cap for 2026. Most condominium units in Makati, Bonifacio Global City, and similar prime areas fall into this category. For exempt units, landlords may adjust rent based on market conditions, as long as the increase is clearly stated in the lease agreement and communicated properly to the tenant.
Can you increase your rent to more than ₱10,000 to avoid the rate increase cap?
If a tenant vacates the unit, landlords are generally allowed to set a new rental rate for the next tenant. The rent increase cap applies specifically to continuing tenants during the regulated period, not to newly leased units.
In addition, the resolution also states:
"RESOLVED FURTHER, that rental regulation shall not apply to new residential units offered for lease, which will be constructed after the approval of this Resolution.
This means that if your PHP 10,000.00 priced rental property gets vacant, you can legally increase the rate to PHP 11,000.00 for the next tenant.
How Landlords Should Approach Rent Increases in 2026
Before increasing rent, landlords should first confirm whether their unit is covered by rent control. If the rent is ten thousand pesos or below and the same tenant is renewing in 2026, the increase must not exceed one percent.
Written notice should be given before lease renewal, clearly stating the new rental amount, effective date, and duration.
Providing a reasonable explanation for the increase helps reduce friction. Common justifications include higher association dues, maintenance costs, unit upgrades, or alignment with comparable units in the same building.
Landlords may also consider offering renewal options such as longer lease terms, early renewal incentives, or smoother payment arrangements. Retaining a good tenant is often more cost-effective than turning over a unit.
What This Means for Landlords in the Philippines this 2026
Rent increases in the Philippines for 2026 depend on both regulation and market realities. Units under ten thousand pesos with continuing tenants are limited to a one percent increase, while higher-priced rentals follow market conditions that remain competitive due to ongoing supply.
For landlords, success in 2026 will come from compliance with regulations, clear communication with tenants, and realistic pricing that balances rental income with long-term occupancy.
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