New York's Good Cause Eviction law applies in New York City and in localities that opt in, which numbered 19 as of May 4, 2026, according to NYS Homes and Community Renewal, and it presumes a rent increase unreasonable above 5% plus inflation, capped at 10%.
A DSCR loan is sized on rent, and this law shapes how fast that rent can grow on a covered unit. The Attorney General's office says the law took effect April 20, 2024, under Real Property Law Article 6-A. For the New York rules that apply statewide, see DSCR loans in New York.
Where does Good Cause Eviction apply?
It applies in New York City and, outside the city, only where a locality adopts it by local law under Real Property Law 213.
- As of May 4, 2026, DHCR listed the cities of Albany, Beacon, Binghamton, Hudson, Ithaca, Kingston, Middletown, New Rochelle, Newburgh, Poughkeepsie, Rochester and White Plains; the towns of Fishkill and Poughkeepsie; and the villages of Catskill, Croton-on-Hudson, New Paltz, Nyack and Tarrytown.
- Under Section 213, the Department of State notifies DHCR after a local adoption, so the list can lag new local laws.
Exception: Condo and co-op units are excluded, and so are buildings with a certificate of occupancy issued on or after January 1, 2009, for 30 years, under Real Property Law 214.
According to the DHCR Good Cause Eviction Law notice, reposted August 17, 2026, and Real Property Law 213 and 214, as of October 2026.
Am I exempt as a small landlord if I own rentals through an LLC?
In New York City a landlord is exempt only if no person behind it owns more than ten units in the state, counted through every affiliated entity, and most opt-in localities set the limit at one unit.
- Real Property Law 211(3)(a) sets the default at ten units in the state, or a different number set by local law, and under 211(3)(c) an entity that can't name every natural person with an ownership interest does not qualify.
- For an entity, each natural person with a direct or indirect ownership interest in it or any affiliated entity must own no more than the limit.
- DHCR's table lists one unit for 18 of the 19 opt-in localities and four units for White Plains.
Exception: An owner-occupied building with ten or fewer units is excluded separately under Section 214(2). The Attorney General's guidance describes a different small landlord rule for Albany than DHCR's table, so confirm Albany with the city.
According to Real Property Law 211, New York State Senate, the DHCR notice and the Attorney General's Good Cause Eviction guide, as of October 2026.
How much can I raise the rent before it's presumed unreasonable?
An increase above the local rent standard, which is 5% plus the annual change in the consumer price index or 10%, whichever is lower, is presumed unreasonable, and the landlord can rebut it with costs such as fuel, utilities, property taxes, insurance and maintenance.
| CPI series in DHCR's notice | 2024 to 2025 change | Local rent standard (5% plus CPI) |
|---|---|---|
| New York-Newark-Jersey City | 3.38% | 8.38% |
| Northeast | 3.15% | 8.15% |
Exception: DHCR publishes the CPI figures, and the standards shown are the 5% plus CPI arithmetic. Where the 3.38% figure applies, a $2,500 rent can rise $209.50, to $2,709.50, before the presumption. Units renting above 245% of HUD fair market rent, or above the percentage an opt-in local law sets (245% to 345% in DHCR's table), are outside the law.
According to Real Property Law 211, 213, 214 and 216 and the DHCR notice, as of October 2026.
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