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Average Rent Increase Per Year: How Much You Should Raise Rent?

Every year, landlords face the same balancing act, keeping rent aligned with rising costs while staying fair to good tenants. Setting the right rent increase is more than just matching inflation. It’s about understanding market data, legal limits, and long-term profitability. This 2025 guide explains what the average rent increase per year looks like across the U.S., why rent goes up, how much you can legally raise it, and how to communicate that change effectively. Key Takeaway Details Average rent increase per year  3–4% on average, depending on inflation and location Why rent increases yearly Inflation, property taxes, maintenance, insurance, and demand Rent control limits CA: 10% cap; OR: 7% + inflation; NY: 2–3%; DC: CPI + 2% Free-market states TX,

Nov 11, 2025

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