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MCI and IAI increases in NYC — explained

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MCI (Major Capital Improvement) and IAI (Individual Apartment Improvement) increases are two ways a landlord can seek higher rent in a stabilized unit for specific improvement costs. HSTPA 2019 significantly limited both.

Educational information about New York City rent rules — not legal advice. Rules change and every situation is different. For your case, consider consulting a licensed attorney or DHCR.

MCI — building-wide improvements

MCIs cover improvements benefitting the whole building (roof, boiler, elevator). MCI increases must be approved by DHCR and are subject to caps and amortization rules updated by HSTPA.

  • Increase generally capped at 2% per year of the tenant's rent.
  • Amortization period lengthened by HSTPA, reducing landlord recovery.
  • MCI increases end after 30 years under current rules.

IAI — improvements inside your unit

IAIs cover improvements inside your specific apartment. Under HSTPA, landlord recovery is much more limited and requires tenant consent for many items.

NYC Rent Guidelines Board rates (Order #58 and recent years)

These caps apply to rent-stabilized apartments only, based on the date your renewal lease begins. Market-rate units have no percentage cap.

Renewal starts1-year2-year
Oct 1, 2026 – Sep 30, 2027 (#58)Current orderAdopted June 25, 2026. A 0% adjustment means the lawful rent charged and paid on Sep 30, 2026 generally carries into the renewal — a renewal notice asking for more than $0 extra appears to exceed Order #58 and is worth verifying.0%0%
Oct 1, 2025 – Sep 30, 2026 (#57)Adopted June 30, 2025. Applies over the lawful rent charged and paid on Sep 30, 2025.3%4.5%
Oct 1, 2024 – Sep 30, 2025 (#56)2.75%5.25%
Oct 1, 2023 – Sep 30, 2024 (#55)3%2.75% yr 1 / 3.20% yr 2

Rates change every June. Verify yours against the official order before relying on it: RGB orders and explanatory statements.

Worked example with real numbers

A $2,400 stabilized rent in Brooklyn, renewing under Order #58

  1. Start with the current legal regulated rent: $2,400 per month (the rent charged and paid on the date the order measures from).
  2. Confirm stabilization. Most pre-1974 NYC buildings with 6+ units are covered, as are many receiving 421-a or J-51 benefits. Requesting your NY HCR rent history is the reliable way to confirm it.
  3. Apply the Order #58 one-year rate (0%): $2,400 × 0.0000 = $0. The renewal rent lands near $2,400.
  4. For a two-year renewal (0%): about $0 more, so roughly $2,400.
  5. Compare last cycle: under Order #57 (Oct 1, 2025 – Sep 30, 2026) the same rent would have gone to about $2,472 on a one-year renewal. The date your renewal begins is what picks the rate.
  6. If the renewal notice says $2,750, that is a $350 jump — about 14.6%. On a stabilized unit that appears to exceed the order in force and is worth verifying against your rent history before paying the difference.
  7. If the unit is market-rate, there is no percentage ceiling, so the check shifts to notice: 14.6% is over 5%, so the §226-c tiers apply.

The same dollar amount can have two very different answers — which is why confirming stabilization status and your renewal start date matters more than the percentage itself.

The notice tiers that apply either way

Under RPL §226-c the written notice a landlord owes you before an increase above 5% depends on how long you have lived in the unit — not on a flat 30 days.

Less than 1 year in the unit
30 days
1 to less than 2 years
60 days
2 years or more
90 days

If the notice was short, the general effect described in §226-c is that the increase cannot take effect until the correct period has run — not that your tenancy ends. Worth raising in writing.

The statutes and orders behind this page

Frequently asked questions

How do I check an MCI on my building?

DHCR issues MCI orders you can request. Your rent history and any MCI orders together show what was applied.

Can I challenge an improper MCI or IAI increase?

Yes — file with DHCR. Consider consulting a tenant attorney for support, especially with amortization arguments.

More NYC rent guides

Or check your own increase for New York.

Free legal help in New York

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State listings sourced from the federal Legal Services Corporation (LSC) grantee directory. Educational information, not legal advice or endorsement.