New Brunswick Rent Increase 2026 and 2027: What Landlords Need to Know

The Current Rules (2026–2027)

The provincial government confirmed in June 2026 that the 3% annual rent cap stays in place through December 31, 2027. For landlords, the rules that apply right now are the same ones that took effect on February 1, 2025, under Bill 3 (S.N.B. 2024, c. 29):

• Maximum increase: 3.0% without officer approval
• Notice period: 6 full calendar months
• Frequency: by default, no increase in the first consecutive 12-month period of a tenancy agreement and no more than one in any other consecutive 12-month period; the parties may agree otherwise in writing
• Format: standalone document, separate from any other notice or lease
• Above-cap route: up to 9% with prior approval for capital expenditures

Nothing in the cap framework changed between 2025 and 2026. The June announcement was a confirmation, not an amendment.

What Changed Going Into 2025

The 2024 amendments were the major shift. Before February 2025, New Brunswick had structural protections (6-month notice, separate document rule, and a default 12-month frequency limit that could be varied in writing) but no percentage cap — landlords could raise rent by any amount as long as they followed the process.

Bill 3 added three things: the 3% statutory ceiling, the "deemed 3%" mechanism that scales back over-cap notices instead of voiding them, and the formal above-cap application process for renovation cost recovery.

The earlier 2022 emergency cap of 3.8% had already expired at the end of that year, and the 2023 amendments had focused on procedure rather than price. The 2025 cap was the first permanent percentage limit.

Planning for 2027 and Beyond

The New Brunswick Housing Corporation reviews the cap rate annually using CPI data, CMHC rental market surveys, and provincial vacancy rates. Results are published by June 1 for the following period.

The rate is 3% for 2026, and the government has announced 3% for calendar year 2027. The Act does not provide for the cap to sunset automatically after 2027. The rate or other rules for 2028 have not yet been announced; the next review is scheduled for May 2027.

The structural rules — 6-month notice, 12-month frequency, separate document — are permanent. They were enacted in 2023 independently of any cap and don't have an expiry date.

Practical planning: for a notice served on November 2, 2026, the earliest effective date under the six-month notice rule is June 1, 2027. That's within the announced 2027 cap period. For notices served in mid-2027 with effective dates in early 2028, check the May 2027 review results and the government's announcement.

Timeline of NB Rent Rules (2022–2027)

Vacancy Decontrol Still Applies

One thing that hasn't changed: when a unit turns over, the incoming tenant's rent is uncapped. The 3% limit applies only to increases during an ongoing tenancy. Between tenants, you set the starting rent at market rate.

This means the cap's practical impact depends on tenant retention. Landlords with long-term tenants face cumulative cap constraints; those with regular turnover can reset to market on each vacancy.

For the complete step-by-step process covering notice drafting, service methods, the above-cap application, and tenant review procedures, see our Rent Increases in New Brunswick guide.

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