New Brunswick Rent Increase Calculator: How to Calculate the Cap
The Basic Calculation
New Brunswick caps residential rent increases at 3.0% per year. The math is simple: take the current monthly rent, multiply by 0.03, and add the result to the baseline.
| Current Rent | × 3.0% | Monthly Increase | New Rent |
|---|---|---|---|
| $800 | $24.00 | $24.00 | $824.00 |
| $1,000 | $30.00 | $30.00 | $1,030.00 |
| $1,200 | $36.00 | $36.00 | $1,236.00 |
| $1,500 | $45.00 | $45.00 | $1,545.00 |
| $1,800 | $54.00 | $54.00 | $1,854.00 |
Round to the nearest cent. Both the current rent and the new rent go on the notice — the tenant should be able to verify your arithmetic.
What Counts as the Baseline Rent
The baseline is the total monetary amount the tenant pays for occupying the premises, including all services, facilities, and utilities bundled into the rent. If the tenant pays $1,200/month and that includes heat, the baseline is $1,200.
Watch out for these scenarios:
Temporary discounts. If you offered a promotional rate that's become the standard over time, a tribunal may treat the discounted figure as the real baseline. Applying 3% to a "nominal" higher figure to inflate the increase violates the Act's principles.
Withdrawn services. Dropping a parking space or utility allowance without cutting the rent by the same value is treated as an indirect rent increase. If the service's value pushes the effective increase above 3%, the adjustment is unlawful.
Calculating the Effective Date
The effective date is the first day the new rent applies. Working backward from the date you want the increase to start:
- Identify the first day of the first month in the six-month notice period.
- Factor in delivery time if using ordinary mail (deemed served on the third day after mailing).
- Confirm the default 12-month frequency limit is satisfied for the tenancy agreement, unless the landlord and tenant agreed otherwise in writing.
Example: You want the increase effective July 1, 2027. The six-month notice period runs from January 1 through June 30. Personal delivery on December 15 is early enough. If using ordinary mail, service is deemed on the third day after mailing; mail by December 29 so it is deemed served by January 1.
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Above-Cap Calculations
If you've received prior approval from a Residential Tenancies Officer for a capital expenditure increase, the approved percentage replaces the 3% cap (up to the statutory maximum of 9%):
| Current Rent | Approved Rate | Monthly Increase | New Rent |
|---|---|---|---|
| $1,200 | 5.0% | $60.00 | $1,260.00 |
| $1,200 | 7.5% | $90.00 | $1,290.00 |
| $1,200 | 9.0% | $108.00 | $1,308.00 |
The approval letter from the officer specifies the exact percentage. Use that number, not the 3% default.
The Deemed 3% Safety Net
If you accidentally serve a notice proposing more than 3% without prior approval, the notice isn't voided — it's legally deemed to be a 3% increase. The tenant pays only the capped amount.
But don't rely on this. A Residential Tenancies Officer reviewing a deemed notice will look closely at every other aspect of your process. Getting the percentage right signals that you know the rules.
The Government Calculator
The Government of New Brunswick offers an online rent increase calculator through the gnb.ca rentals portal. It lets you input the current rent and see the maximum allowable increase under the cap. It's a useful sanity check, but it doesn't calculate your effective date or verify your 12-month lockout — those require manual counting.
For the complete workflow — eligibility checks, notice drafting, service methods, and handling tenant reviews — see our Rent Increases in New Brunswick guide.
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