There's no single answer, because New Jersey doesn't set one statewide. What actually limits a rent increase depends entirely on whether your municipality has a local rent-control ordinance — and if it doesn't, on a general legal standard rather than a fixed number.
No statewide cap exists (yet)
New Jersey has no statewide law capping the percentage a landlord may raise rent. Bills S452 and A751, which would cap increases at the lesser of 5% plus CPI or 10%, remain pending in committee and are not enacted law. Anyone telling you there's a statewide percentage cap right now is wrong.
Roughly 100 New Jersey municipalities have adopted their own rent-control (also called rent-leveling) ordinance under home rule, and each writes its own formula. Common patterns in this site's data: a flat fixed percentage per year; a share of the change in the Consumer Price Index (CPI); the lesser of a fixed percentage or a CPI-based figure; or a CPI-based figure bounded by a floor and ceiling. The exact formula, the CPI series and measurement window (if any), and the exemptions all vary town by town — there is no one number that applies statewide.
Outside a rent-controlled unit, New Jersey doesn't set a numeric ceiling on an increase — but that doesn't mean any number is beyond challenge. Under the Anti-Eviction Act framework, an increase must not be "unconscionable," and the landlord bears the burden of proving it is not. The leading case, Fromet Properties, Inc. v. Buel, 294 N.J. Super. 601 (App. Div. 1996), sets out a multi-factor test: (1) the size of the increase; (2) the landlord's expenses and profitability; (3) comparison to similar-area rents; (4) the parties' relative bargaining position; and (5) whether the increase would "shock the conscience" of a fair and honest person. Hale v. Farrakhan, 390 N.J. Super. 335 (App. Div. 2007), reaffirms the same factors, and Calhabeu v. Rivera, 217 N.J. Super. 552 (App. Div. 1987), confirms the landlord's burden of proof. A5432, which would codify the Fromet factors into statute, passed the Assembly in May 2025, but its Senate companion has not moved — it is not yet law.
Among the municipalities tracked on this site, here are the twenty largest by population that currently have an active local rent-control ordinance, with each one's cap formula. Click through for the full ordinance text, notice rules, and exemptions.
| Municipality | County | Cap formula |
|---|---|---|
| Newark | Essex | The increase equals the percentage change in the CPI-U (New York-Northern NJ-Long Island area) from 15 months to 3 months before the proposed increase, capped at 4%. For properties not otherwise covered by rent control, increases from all sources exceeding 25% in one year are deemed excessive and unconscionable and are not allowed. Substandard buildings with 3+ units may also be brought under rent control by the Public Officer. |
| Jersey City | Hudson | the lesser of 4% or the percentage change in CPI measured 3 months before lease expiration/termination versus 3 months before lease commencement |
| Paterson | Passaic | Standard annual increase up to 5%; reduced to 3.5% for tenants who are heads of household age 65+ or found disabled by the Social Security Administration, with a further-reduced 2.5% rate for qualifying low-income seniors/disabled tenants. |
| Elizabeth | Union | At lease expiration, termination of a periodic tenancy, or the building's anniversary date, the base rent increase is capped at a flat 3% over the base rent received for the prior 12 months. |
| Lakewood | Ocean | 6.5% flat annual increase where the landlord supplies heat, or 5% where the tenant pays for heat; parties may instead mutually agree to a two-year lease with a higher optional increase of 9.75% (landlord-supplied heat) or 7.5% (tenant-paid heat). |
| Edison | Middlesex | A flat 5% per annum cap on the base rent; hardship or capital improvement surcharges (up to 15% of rent) may be separately approved by the Fair Rental Housing Board. |
| Woodbridge | Middlesex | A flat 5% cap on the existing base rent for covered units (generally buildings with more than 4 units); landlords may apply to the Rent Leveling Board for additional increases beyond the cap based on documented hardship, capital improvements, or increased operating costs. |
| Trenton | Mercer | A flat 4% increase for a regular tenant, or 2% for a senior citizen or disabled tenant, no more than once every 12 months. |
| Clifton | Passaic | 3% annual cap for dwelling units where the landlord provides heat and/or air conditioning; 2% cap where the landlord does not. The Mayor and Municipal Council review the maximum percentage annually and may adjust it, considering (but not bound by) the CPI-U Northeast Region less energy. |
| Camden | Camden | the lesser of the average Philadelphia-area CPI increase for the preceding 12 months or 6% of the most recent rent |
| Bayonne | Hudson | The allowable increase equals the applicable CPI percentage, capped at 5.5% of monthly rent if CPI would exceed that. |
| Passaic | Passaic | Under the 2025 rewrite of the stabilization ordinance (§231-23), rent increases are capped at a flat 3% of existing rent; a separate itemized fee for the tenant's pro rata share of property tax increases may be added on top of the 3% cap. |
| East Orange | Essex | Different caps apply by tenancy type: for a new tenant, the lesser of a 5% increase over the prior tenant's rent or the CPI percentage change (3 months before lease end vs. 3 months before lease start); month-to-month/week-to-week tenants: up to 4% of the existing rent; year-to-year tenants: up to 4% per 12-month period the lease has been in effect; qualified senior or disabled tenants: up to 2% per 12-month period. |
| Union City | Hudson | the lesser of 3.0% or the CPI increase for the NY–Northern NJ Metro Area over the preceding 12 months; for qualified senior citizens (age 62+, PAAD-income-eligible), the lesser of 2.0% or the same CPI increase |
| Gloucester | Camden | Standard annual increase up to 4.5% for Class A dwelling spaces (landlord pays heat directly) and up to 4% for Class B dwelling spaces (tenant pays heat directly), granted by the Administrator on a complete application, with proof of a termination notice served on affected tenants at least 90 days before the increase's effective date; not mandatory, and may be reduced for failure to meet maintenance-standard criteria. |
| Old Bridge | Middlesex | At the expiration of a lease or termination of a periodic tenancy of at least 12 months, the increase may not exceed the lesser of the CPI as of January 1 of the current year or 3%, reviewed annually by the Township Council; real estate taxes passed through to tenants are excluded from this calculation. |
| North Bergen | Hudson | the percentage change in CPI for the region including North Bergen, measured 3 months before lease expiration versus the date the previous lease term commenced, capped at 2.5% |
| Irvington | Essex | Standard annual increase capped at 4% of the prior year's rent where the landlord supplies heat, or 3% where the landlord does not supply heat; tenants who are heads of household age 65 or older are limited to a 2% increase regardless of who pays for heat. |
| Piscataway | Middlesex | The lesser of (1) the average CPI increase over the previous 12-month period, or (2) 6% of the rent in effect under the expiring lease. |
| Hoboken | Hudson | The lesser of 5% or the percentage difference in CPI between 3 months before lease expiration/termination and 3 months before the lease term began. |
Ranked by approximate population among the municipalities in this site's dataset that currently have an active local rent-control ordinance. Each formula links to that town's full page, including the verbatim ordinance text and notice rules — confirm the current figure there before relying on it.
Because the number depends entirely on your municipality, the fastest way to get a real figure is to look your town up directly: browse the full list of 115 municipalities by county, or use the calculator on your town's page once you're there. If your municipality isn't on that list, it most likely has no rent-control ordinance on file, which means the unconscionability standard above — not a percentage cap — is what governs.
Generate a rent increase notice
Find your municipality, confirm its cap and notice rules, and get a printable, ordinance-cited rent increase notice — $9, pay by card.
Pick your town →This page is informational, not legal advice, and does not review your specific situation. NJ Rent Control is an independent reference site, not a law firm or a rent leveling board. Confirm current terms with your municipality's rent leveling board or municipal clerk, and consult a licensed New Jersey attorney about your rights or obligations.