How to Calculate Rent Controls in Paris in 2026?
Our real estate agency in Paris's 16th arrondissement presents a comprehensive guide to correctly calculating rent—in accordance with the law—in Paris in 2026.
What is rent control, and what is its purpose in Paris?
Introduced by the ALUR Act, which is linked to the annual decree limiting rent increases to the rent reference index (IRL) in high-demand areas, rent control in Paris is an experimental measure stemming from the ELAN Act that was implemented by the City of Paris on January 1er July 2019 through 2026, to limit excessive rent increases in areas where rental demand is very high.
The goal of rent control in Paris is simple:
- Protect tenants from excessive rent in high-demand areas.
- Stabilize the rental market and regulate rent increases in areas where demand exceeds supply, such as in central Paris.
Each year, three benchmark rents, expressed as a price per square meter of living space The maximum rent limits—which must not be exceeded when signing a lease—are set by prefectural order and based on data from the Paris Metropolitan Area Rent Observatory (OLAP):
- A reference rent,
- A reference rent plus a 20% surcharge,
- A reduced reference rent (reduced by 30%).
What is the difference between the reference rent, the increased reference rent, and the reduced rent?
The calculation of rent controls in Paris is based on three concepts:
- The reference rent, which is in fact the median rent, calculated based on the type of housing (furnished or unfurnished), the number of rooms, the building’s construction date, and the geographic area—particularly in Paris, based on neighborhood boundaries;
- The adjusted reference rent, which corresponds to the authorized maximum that the landlord may not exceed (excluding justified rent supplements): Reference rent + 20%;
- The Reduced Reference Rent, which serves as a minimum benchmark and is equal to the Reference Rent minus 30%.
How does rent control differ from the IRL (annual indexation)?
L’rent control and theRent Reference Index (IRL) that have distinct objectives.
- Rent control allows for the setting of a rent cap when a lease is signed or when there is a change in tenants.
- The IRL, published by INSEE, allows landlords to adjust rents annually in line with inflation.
Which properties are subject to rent control in Paris in 2026?
Within the city limits of Paris, rent control applies to leases signed on or after July 1, 2019, for:
- unfurnished or furnished rentals used as primary residences;
- Lease renewals governed by the Act of July 6, 1989, in the private rental housing stock.
Good to Know : This provision does not apply to public housing, short-term tourist rentals, and housing subject to the 1948 law, the Leases under the Civil Code.
Does a change in tenant affect the applicable rules?
Yes, but only under specific circumstances when entering into a new lease:
- If the rent does not exceed the increased reference rent cap in effect in 2026;
- If the previous rent was below the cap, without an increase above the authorized cap.
Only major renovations or a supervised reappraisal can justify a significant rent increase between tenancies.
How can you tell if your property is subject to rent control in Paris?
If you are a landlord and your property is located in Paris, it will be subject to rent control. It is important to note that Paris is divided into fourteen geographic sectors, comprising 80 neighborhoods, each with its own reference rent levels.
How do I check the zone/sector and category of the housing unit?
To find out the rent cap that applies to your housing in Paris, you can consult the official interactive map published by the Prefecture through the Regional and Interdepartmental Directorate for Housing and Accommodation. (D.R.I.H.L), providing the address of your property or its details:
- Number of main rooms;
- Period of construction; Number of rooms;
- Whether the rental is unfurnished or furnished.
