Quebec renters can expect a roughly 3% increase in rent for 2026, as the province rolls out a dramatically simplified formula for calculating annual rent hikes.
A Simpler Calculation for Rent Increases
The new method, the first major overhaul of Quebec’s rent regulations since 1981, aims to provide more predictability for both landlords and tenants.
- The new rent increase calculation will primarily rely on Quebec’s Consumer Price Index (CPI).
- The calculation now considers only four variables, down from around ten previously.
- Economists estimate the 2026 increase will be around 3%, translating to $30 more per month for a $1,000 rent.
- Property tax and insurance variations, and capital expenditures will be factored in, if applicable.
Record rent increases sparked debate in 2025, with the Administrative Housing Tribunal (TAL) suggesting a 5.9% hike – a recent peak. In response, the Quebec Ministry of Housing reviewed its criteria in April, officially adopting the new system last December.
Inflation Takes Center Stage
The new method bases its percentage on the Consumer Price Index (CPI) for Quebec, as established by Statistics Canada. This year’s calculation will consider inflation rates from 2025, 2024, and 2023. The December 2025 CPI figure, the final piece of the puzzle, will be revealed next Monday.
Assuming a final 2025 CPI of around 2.2%, with rates of 4.5% in 2023 and 2.3% in 2024, economist Paul Cardinal estimates an average annual increase of 3%, as noted in the December 2025 issue of CORPIQ magazine. For a $1,000 rent, this translates to a $30 monthly increase. The Corporation of Real Estate Owners of Quebec (CORPIQ) declined to confirm this percentage in a recent interview.
Beyond Inflation: Additional Costs
Three additional criteria may be added to the inflation average. Variations in property taxes and insurance premiums will be considered only if they exceed the base percentage. For example, a 4% property tax increase on an apartment building, with a 3% base percentage, would result in a 1% shortfall, distributed among tenants – roughly $1.66 per month for a fourplex with equally sized units.
Capital expenditures – costs for repairs, major improvements, or new services – represent another change. Previously, the payback period for these investments varied with interest rates. Now, these expenditures can be recovered over a fixed 20-year period at a fixed 5% annual rate. Landlords could also adjust rent to cover new services, like internet access.
Mixed Reactions to the Reform
Both the Regroupement des logement committees and tenant associations of Quebec (RCLALQ) and CORPIQ acknowledge the benefits of factoring in inflation, even with the elimination of other criteria. However, Shannon Franssen, interim coordinator of RCLALQ, views the reform as a “wasted and lost” opportunity, citing concerns that renovation costs will fall on tenants.
“But if [a landlord] made a significant investment which is not translated into an increase in rent, it is nothing more and nothing less than money being thrown out the window,” said Éric Sansoucy, spokesperson for CORPIQ. He called the change “half good news,” praising the predictability it offers, but questioning whether a 5% fixed rate is enough to incentivize renovations. He also noted the removal of maintenance and management expenses from the criteria, a point of contention for some owners. CORPIQ believes the simplified calculation will reduce the backlog of cases at the TAL.
The RCLALQ continues to advocate for a rent freeze as the ideal solution for controlling rent in Quebec.
Important Reminders
- The TAL’s suggested increase is a recommendation only; landlords can propose higher or lower amounts.
- Tenants and landlords are encouraged to negotiate before rejecting an increase.
- Tenants have the right to refuse an increase, but are unlikely to succeed at the TAL if the increase aligns with the calculation.
Worth a look
