New Brunswick Rent Cap Annual Review and Extension Explained

How the Rent Cap Rate Gets Set Each Year

New Brunswick's 3% rent cap is not a permanent fixture — it is subject to annual review. Under N.B. Reg. 82-218 Section 11.13(1), the New Brunswick Housing Corporation (NBHC) must evaluate the cap rate each year using three metrics:

1. Consumer Price Index (CPI): the year-over-year percentage change in the CPI for New Brunswick (All-Items) as reported by Statistics Canada, averaged over the 12-month period ending June 30 of the preceding year
2. CMHC rental market data: Canada Mortgage and Housing Corporation survey results for New Brunswick
3. Provincial vacancy rates: the current vacancy picture across the province

The NBHC must publish the results of this review on or before June 1 each year. The Act requires a review and publication; it does not say that the 3% provision expires on December 31, 2027.

The Current Cap: 3% for Calendar Year 2027

The 3% cap was introduced by Bill 3 (An Act to Amend The Residential Tenancies Act, S.N.B. 2024, c. 29), taking effect February 1, 2025. On June 24, 2026, the provincial government announced that it would maintain the 3% rate for the 2027 calendar year and said the next review would take place in May 2027.

Housing Minister David Hickey announced the decision, describing it as a balance between tenant affordability and landlord cost pressures. The 3% figure was maintained despite calls from the New Brunswick Apartment Owners Association to raise the cap to reflect actual CPI growth, and from tenant advocacy groups to lower it further or make it permanent.

What the Review Could Change

The annual review can result in:

• Keeping the cap at 3% — as announced for 2027
• Raising the cap — if the government changes the applicable rate
• Lowering the cap — if the government changes the applicable rate
• Another legislative or regulatory change — the current Act does not provide for an automatic December 31, 2027 expiry

The Act requires the New Brunswick Housing Corporation to review the maximum rent increase and publish the results. The NBHC's review is advisory; the final decision is a government policy choice informed by the data. The rate or other rules for 2028 have not yet been announced.

What Happens After 2027?

The cap provision does not contain an automatic end date at the end of 2027. The government has announced the 3% rate for 2027 and said the next review will take place in May 2027. The rate or other rules for 2028 have not yet been announced.

As a landlord, the practical approach is to plan within the current framework. The default 12-month frequency limit and six-month notice requirement are separate from the annual rent-cap review.

How This Affects Your Timing

If you are calculating a rent increase for 2027, the government has announced that the rate will remain 3% for that calendar year. For an increase taking effect in 2028, the rate has not yet been announced; the next review is scheduled for May 2027, and results must be published by June 1.

Serving a rent increase notice now for a 2028 effective date carries some uncertainty because the applicable rate has not been announced. Check the government announcement and current law before serving a notice for that period.

Planning Within the Framework

The Rent Increases in New Brunswick guide is dated to the current statutory framework (rules as at October 2026, 3% cap through 2027) and covers the complete compliance process including calculation worksheets, timeline planning, and the above-cap application route for landlords who need cost recovery beyond the standard ceiling.

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