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Rent Control in High-Demand Areas: Caps Extended Through July 31, 2027

Decree No. 2026-644 of July 20, 2026 extends rent increase controls in high-demand areas from August 1, 2026 to July 31, 2027. What changes for re-letting, lease renewals, and the total freeze for DPE-rated F and G properties.

By Thomas P. · Published August 28, 2026

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You have a property in a high-demand area and are wondering whether you can increase the rent between tenants. The short answer: no, except in very limited circumstances. And if your property is rated F or G on the DPE, the answer is even shorter: no, period.

Decree No. 2026-644 of July 20, 2026, published in the Official Journal on July 22, 2026, extends for one year the cap on rent increases in high-demand areas. It applies to contracts signed or renewed between August 1, 2026 and July 31, 2027. This is not a revolution: it is yet another renewal of a mechanism that has existed since 2012. But each year brings its share of landlords who discover the rule at the time of signing, and tenants who pay an illegal rent without knowing it.

This guide clarifies what is actually capped, what is not, and what the DPE F/G freeze concretely changes.

The Answer in 30 Seconds

Before signing a lease or accepting an increase, check that the requested rent complies with these caps. An illegal rent can be challenged, and any overpayment recovered.

What the Law Says

The control of rent increases is based on Article 18 of Law No. 89-462 of July 6, 1989. It should not be confused with the control of the level of rents, introduced on an experimental basis by the ELAN law in certain municipalities (Paris, Lille, Lyon, Villeurbanne, Bordeaux, etc.). These are two distinct mechanisms that can overlap in the same area.

Decree No. 2017-1198 of July 27, 2017 sets out the implementing rules. It is amended each year. The most recent amendment is Decree No. 2026-644 of July 20, 2026.

Which Properties Are Affected?

The mechanism applies to rentals of unfurnished or furnished properties, including mobility leases, used as a primary residence or for mixed professional and primary residential use, subject to the law of July 6, 1989.

Excluded, in particular:

Which Municipalities Are in High-Demand Areas?

The municipalities concerned are those listed in 1° of the annex to Decree No. 2013-392 of May 10, 2013 on the tax on vacant housing. This zoning was updated by Decree No. 2025-1267 of December 22, 2025: new urban units entered the classification, others saw their boundaries change, and some municipalities were removed.

Do not rely on a 2024 list or an outdated blog post. Check the exact municipality of the property using the official Service-Public simulator.

The Principle at Re-letting

When a vacant property is re-let, the rent under the new contract cannot exceed the last rent paid by the previous tenant.

Two scenarios:

An important subtlety: if the previous tenant's contract provided for a gradual rent increase (for example, an increase spread over 6 years) and the tenant left before the end of that increase, the landlord may apply the fully increased rent to the new tenant, even if the last rent actually paid reflected only a fraction of that increase.

Exceptions at Re-letting

The landlord may exceed the last rent paid by the previous tenant in two cases:

These exceptions are strictly regulated. The landlord must be able to justify the clearly undervalued nature of the rent or the nature of the works. A simple repaint is not enough.

Lease Renewal

At renewal, the rent increase is capped at the IRL variation. Again, two exceptions: clearly undervalued rent, or improvement works justifying an increase.

The Special Case of F and G Properties

Since August 24, 2022, for contracts signed, renewed, or extended, the rent for a property rated F or G on the DPE cannot exceed the last rent paid by the previous tenant. This is Article 17 of the law of July 6, 1989, stemming from the Climate and Resilience Law.

Direct consequence: the provisions of the decree of July 27, 2017 do not apply to F and G properties. In other words, no rent increase is possible, whether at re-letting or renewal. Even the annual IRL adjustment is neutralized.

This is a total freeze, and it applies regardless of the high-demand area. An F or G property located outside a high-demand area is also affected.

Why This Can Be a Problem

The classic trap is the landlord who sets the re-letting rent "at market price" without checking the last rent applied. In high-demand areas, this reflex is illegal. The tenant who signs without checking pays an inflated rent, sometimes for months, before realizing it.

Another trap: confusion between controlling increases and controlling levels. In Paris, for example, both mechanisms apply. A landlord may comply with the increase cap while exceeding the reference rent plus the increase set by prefectural order. The tenant must check both.

The case of F and G properties is even more insidious. Many landlords are unaware that the freeze also applies at renewal. They send an IRL increase proposal, the tenant accepts without checking the DPE, and the rent becomes illegal. Contesting is possible, but it requires acting within the time limits.

Finally, the zoning changed on December 22, 2025. Some municipalities entered high-demand areas, others left. A landlord relying on an outdated list may mistakenly believe they are free to set the rent, or mistakenly believe they are capped. In both cases, the mistake is costly.

Concrete example. An apartment in Annecy, a high-demand area. The previous tenant paid €850 excluding charges, with no adjustment for 14 months. The IRL increased by 2.1% over the period. The landlord can offer the new tenant: €850 × 1.021 = €867.85. Not a cent more. If they offer €920, aligning with neighborhood listings, the rent is illegal.

Same example, but the property is rated F on the DPE. The landlord can only offer €850. The IRL variation is neutralized. If they offer €867.85, it is illegal.

Exceptions to Know

  1. Property outside a high-demand area: the increase control does not apply. But beware of the DPE F/G freeze, which applies everywhere.
  2. Social housing (HLM) or APL-agreed property: excluded from the increase mechanism.
  3. Seasonal rental: excluded.
  4. Clearly undervalued rent: the landlord may propose an increase above the cap, but must be able to justify it with references to neighboring rents. The procedure is regulated, and the tenant can contest.
  5. Improvement works: an increase is possible if the works meet the characteristics of the decree. A simple refresh is not enough.
  6. Property rated F or G: no exceptions. The freeze is total, even with works, even with undervalued rent.

Checklist: Verify a Rent in a High-Demand Area

Possible Actions

For the tenant who discovers an illegal rent:

For the landlord who wants to secure their rent:

If you have any doubt about the compliance of your lease or a requested rent, an analysis of the contract can help you avoid signing an illegal commitment.

FAQ

Does the cap apply to furnished rentals? Yes. Furnished rentals used as a primary residence are subject to the same rent increase control as unfurnished rentals.

Is the mobility lease affected? Yes. The mobility lease, subject to the law of July 6, 1989, falls within the scope of the mechanism.

Can an F or G property outside a high-demand area see its rent increase? No. The rent freeze for F and G properties applies across the entire territory, regardless of high-demand zoning.

How do I know if my municipality is in a high-demand area? Use the official Service-Public simulator, which incorporates the zoning updated by the decree of December 22, 2025.

Can the landlord increase the rent at renewal if the property is F or G? No. The freeze is total: no IRL increase, no increase for undervalued rent, no increase for works.

What if the lease does not mention the previous tenant's last rent? This mention is mandatory if the previous tenant left less than 18 months ago. Its absence may justify an action to reduce the rent.

Sources

Legal Information

The information presented on this page is provided for informational purposes and is based on the texts and sources available at the time of its publication or last update. Legislation, regulations, and case law may change at any time. The results and explanations offered by bail.immo do not constitute legal advice and do not replace the opinion of a lawyer or other competent legal professional.