The National Human Settlements Board (NHSB) has approved a 2.3 percent cap on rental increases for residential units with monthly rates of P10,000 or less, effective from 1 January to 31 December 2025. This is a decrease from last year's 4 percent cap.

NHSB Resolution No. 2024-001, issued in December 2024, follows recommendations from the National Economic and Development Authority (NEDA). The measure aims to protect lower-income tenants from steep rent hikes.

Department of Human Settlements and Urban Development Secretary Jose Rizalino Acuzar is the chair of NHSB. Undersecretary Henry Yap, who represents the housing chief in the board, signed the resolution for DHSUD.

The rental cap applies to units occupied by the same tenants in 2024 and those who renew leases in 2025. Units with monthly rents exceeding P10,000 are exempt.

Residential units covered by the cap include apartments, houses, boarding houses, dormitories, and rooms rented for residential purposes, excluding motels and hotels.

If a unit becomes vacant, landlords may raise rent for new tenants beyond the cap. However, boarding houses, dormitories, rooms, and bedspaces are limited to one rent increase in 2025, regardless of the cap.

Newly built units leased in 2025 are not subject to the cap, but a 1% cap will apply for tenants in 2025 who renew leases in 2026.

Tenants are encouraged to resolve disputes through the Barangay Justice System before resorting to court. Landlords found guilty of violating the cap could face fines of P25,000 to P50,000, imprisonment of one to six months, or both.