Raising the rent is never fun. A clear letter with real numbers makes it easier for you and your tenant. This guide shows how to check a rent and write the letter.
Step 1: Check the fair market rent
Each year, HUD sets a fair market rent for every area and home size. It is close to the middle of what rent costs there. Most ZIP codes in cities have their own number.
The newest numbers are for HUD's fiscal year 2027. They are in use from October 1, 2026.
Step 2: See what prices did
Prices go up most years. The Bureau of Labor Statistics tracks this with the Consumer Price Index (CPI).
Here is the math:
- Take the rent now. Say it is 1,250 dollars a month.
- Find the price index for the month you set the rent.
- Find the price index for the newest month.
- Rent now x new index / old index = rent that kept up with prices.
If prices went up 6%, a rent of 1,250 dollars that kept up would be about 1,325 dollars.
Step 3: Check your local rules
Some states and cities limit how much you can raise rent. Many need a set number of days of notice. Your lease may say more. Check your local rules before you send a letter. We do not give legal advice.
Step 4: Write the letter
A good letter is short and kind. It says:
- The date.
- The tenant's name and the address.
- The rent now and the new rent.
- The day the new rent starts.
- That the rest of the lease stays the same.
- How to reach you with questions.
The quick way
- Go to tools.ltd/rent-check.
- Type the ZIP code, bedrooms, the rent now, and the month you set it.
- See the fair market rent and the rent that kept up with prices.
- Pick the new rent and the start date.
- Press Make my letter. Print it or save it as a PDF.
Have many units? Pro takes a CSV file and makes one letter for each unit.
Names and rents stay on your computer. They are never uploaded.
Frequently asked questions
What is fair market rent?
It is a number HUD sets each year for each area and home size. It is close to the middle of what rent costs there.
How do I work out a rent increase for inflation?
Take the rent now. Multiply it by the price index today. Divide by the price index in the month you set the rent. Rent Check does this for you.
How much notice do I need to give?
It depends on where the home is and on your lease. Check your local rules before you send the letter.
Is this legal advice?
No. It shows numbers and makes a letter. It does not say what the law allows.
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