What Happens to Your Rent When 421-a Benefits Expire?

If you’re renting in a building that’s been benefiting from NYC’s 421-a tax program, you’ve likely been enjoying rent stabilization. But what happens when that benefit expires? Can your landlord suddenly raise the rent through the roof or refuse to renew your lease? The short answer: It depends on your lease history and tenant protections in place.

‍

Will You Get Another Rent-Stabilized Lease?

‍

Your lease is up in March 2026, but the 421-a benefits don’t expire until July 2026—so yes, you should get one more rent-stabilized lease renewal at that time. And here’s the good news: you get to choose whether it’s for one or two years.

‍

But after July 2026, when the tax benefits expire, your rent stabilization protections will most likely disappear. At that point, your landlord can set the rent at market rate.

‍

Could Your Unit Still Be Rent-Stabilized?

Here’s a big loophole to check: Every single lease you’ve signed should have included a lease rider explaining that your apartment is only stabilized because of the 421-a program.

• If those riders were included, your rent stabilization will end when the tax benefit does.
• If they weren’t included in every lease, your unit might actually stay stabilized until you move out—which could mean continued protections against big rent hikes.

‍

It’s worth digging up all your old leases to check.

‍

Can Your Landlord Just Raise the Rent or Refuse to Renew Your Lease?

‍

Once your unit is no longer stabilized, New York’s Good Cause Eviction Law kicks in, offering you some protection. Here’s what that means:

• They can’t evict you without a good reason. Nonpayment, lease violations, or the owner wanting to occupy the unit themselves? Those are valid reasons. Just wanting a new tenant? Not a valid reason.
• They can’t raise your rent to an outrageous level. If your landlord tries to hike the rent by more than the rate of inflation plus 5%, it could be considered unreasonable.

‍

That said, there are exceptions—like if the landlord has made major upgrades to the building. The state housing agency sets the reasonable rent increase rate every August, so it’s worth checking when your lease is up.

What Should You Do?

1. Dig up your old leases and check for the 421-a rider. If it’s missing, you might still have rent stabilization protections.
2. Know your rights under Good Cause Eviction—even after stabilization ends, your landlord can’t just kick you out or raise the rent unfairly.
3. Plan ahead for possible rent increases. If you plan to stay, keep an eye on what a reasonable rent increase looks like based on state guidelines.

‍

The end of 421-a benefits can be nerve-wracking, but as long as you’re informed and prepared, you won’t be caught off guard.

‍

Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.

‍