Laws & Policy · Explainer

Good Cause Eviction in NYC, explained for renters and owners.

Since April 2024, many NYC market-rate renters have new protections against non-renewal and big rent hikes. Here is who is covered, who is exempt, and the math behind the rent increase limit.

Gabe Einhorn, co-founder of NessooPublished Oct 17, 2026

3 min read

The short answerNessoo Report · nessoo.com

Good Cause Eviction is a 2024 New York State law that applies in NYC. For covered apartments, a landlord needs a legal reason to evict or not renew, and rent increases above the local rent standard (8.38% in NYC, per the state's July 2026 notice) are presumed unreasonable.

→Exempt: small landlords (10 or fewer units statewide), rent regulated units, co-ops and condos, and buildings with a certificate of occupancy from 2009 on.
→Units renting above 245% of fair market rent are not covered.
→Every lease and renewal must come with a notice saying whether the law applies.

For years, a market-rate lease in New York ended the same way.

The landlord could just say no.
No renewal.
No reason.

On April 20, 2024, that changed for a lot of apartments. The Good Cause Eviction law took effect, and it applies in New York City automatically.

Here is what it actually does, as of October 17, 2026.

What does Good Cause Eviction do?

Two things.

A reason to remove you. For a covered apartment, a landlord needs one of the reasons listed in the law to evict you or refuse to renew.
A check on big increases. If a renewal rent goes up more than the “local rent standard,” the increase is presumed unreasonable. And a tenant cannot be evicted for not paying rent that came from an unreasonable increase.

It does not create rent stabilization. It does not set your rent. It sets a line, and an owner who goes over it has to be able to justify it.

How much can rent go up?

The formula is in the statute.

5% plus the yearly change in the regional consumer price index.
Or 10%.
Whichever is lower.

In July 2026, the state published the latest CPI change for the New York City region: 3.38% from 2024 to 2025.

So the local rent standard in NYC works out to 5% + 3.38% = 8.38%.

On a $3,000 apartment, that is $3,000 x 8.38% = about $251. A renewal above roughly $3,251 would be presumed unreasonable.

Presumed, not banned. In a case, a court can look at the owner’s costs for fuel, utilities, insurance, maintenance and property taxes, and at significant repairs (structural, electrical, plumbing, mechanical systems, or hazardous material removal). Cosmetic work does not count.

Who is exempt?

This is the part most people get wrong. A lot of NYC apartments are not covered.

Small landlords. Owners with 10 or fewer units anywhere in the state.
Small owner-occupied buildings. Buildings with 10 or fewer units where the owner lives.
Rent regulated units. Stabilized apartments already have their own, stronger rules.
Co-ops and condos. Units in buildings owned as a co-op or condo, or under an offering plan.
Newer buildings. Buildings that got a certificate of occupancy on or after January 1, 2009, for 30 years.
High-rent units. Apartments renting for more than 245% of fair market rent.
Others. Including employer-provided housing, seasonal units, hotels, dorms and other institutional housing, and units in religious facilities.

What is the luxury threshold in NYC?

The 245% line is set by unit size. In the state’s 2026 notice, it is the same in all five boroughs.

Studio. $6,196
1-bedroom. $6,505
2-bedroom. $7,130
3-bedroom. $8,928
4-bedroom. $9,700

Rent above that line, and the law does not cover the unit.

What can a landlord still evict for?

Good Cause is not “you can never be evicted.” The law lists the reasons, including:

Unpaid rent, as long as it did not come from an unreasonable increase.
Serious lease violations, after written notice and 10 days to stop.
Nuisance or damage, or interfering with other tenants’ safety.
Illegal use of the apartment.
Refusing access for repairs or showings.
Owner move-in, for the owner’s own primary residence. This one is not available against tenants who are 65 or older or disabled.
Demolition or taking the unit off the market, proven by clear and convincing evidence.

What do landlords have to disclose?

Every initial lease and every renewal has to come with a state notice saying whether the unit is covered by Good Cause. If it is exempt, the owner checks the reason why.

The same notice goes with non-renewal notices and certain eviction papers. If an increase is above the local rent standard, or the owner is not renewing, there is a section for the reason.

Here is how I see it

For renters: read that notice. It tells you, in writing, which rules your landlord says apply.

For owners: know your number before you send the renewal. 8.38% is the line right now. Go over it, and you need a reason you can show.

Clear rules help both sides.

“Good Cause doesn't freeze your rent. It makes big jumps harder to justify.”
Gabe Einhorn, co-founder of Nessoo

Frequently asked questions

Does Good Cause Eviction apply to my apartment in NYC?

It might. It does not cover rent regulated units, co-ops or condos, units owned by a small landlord (10 or fewer units statewide), owner-occupied buildings with 10 or fewer units, buildings with a certificate of occupancy issued on or after January 1, 2009, or units renting above 245% of fair market rent, among other exemptions. Your lease or renewal should include a notice that says whether it applies.

How much can my rent go up under Good Cause Eviction?

The law does not set a hard cap. Increases above the local rent standard are presumed unreasonable. The standard is 5% plus the regional CPI change, or 10%, whichever is lower. Using the CPI figure the state published in July 2026 (3.38%), that is 8.38% in NYC.

What is the luxury exemption for Good Cause Eviction in NYC?

Units with monthly rent above 245% of HUD fair market rent are not covered. Per the state's 2026 notice, that is $6,196 for a studio, $6,505 for a 1-bedroom, $7,130 for a 2-bedroom, $8,928 for a 3-bedroom and $9,700 for a 4-bedroom in all five boroughs.

Can a landlord still evict me under Good Cause?

Yes, for reasons the law lists, such as unpaid rent (if not caused by an unreasonable increase), serious lease violations after notice, nuisance, illegal use, refusing access, the landlord moving in, or demolition or taking the unit off the market.

Cite this

Einhorn, Gabe. “Good Cause Eviction in NYC, explained for renters and owners.” Nessoo Report, Nessoo (nessoo.com), Oct 17, 2026.

About Gabe Einhorn

Co-founder of Nessoo, the verify-first rental marketplace in New York. He writes every Nessoo Report. nessoo.com

Sources