Gov’t cuts rent cap for units leased at P10,000 and below

MANILA, Philippines — Property owners may not raise rents beyond 2.3 percent this year for existing tenants who pay P10,000 or less for their housing, under a new government policy to protect lower-income Filipinos from exorbitant rent hikes.

The rental cap, valid from Jan. 1 to Dec. 31, 2025, is lower than last year’s 4-percent cap, according to Resolution No. 2024-001 issued by the National Human Settlements Board (NHSB).

The board approved the resolution in December on the recommendation of the National Economic and Development Authority.

According to the Department of Human Settlements and Urban Development (DHSUD), which leads the NHSB, “the rental cap applies to residential units currently occupied by the same tenants as of 2024, who pay P10,000 or less per month, and who will continue to occupy or renew their lease in 2025.”

New tenants

But it’s a different case for new tenants. “If the unit becomes vacant in 2025, the lessor may increase the rent of a new tenant beyond the set limit. This increase is permitted because the new tenant is not covered by the aforementioned resolution,” the DHSUD said in a statement on its website.

Meanwhile, “a new limit of 1 percent shall apply to units occupied by the same tenants as of 2025, paying P10,000 or less per month, and who will continue to occupy or renew their lease in 2026,” the agency said.

Residential units with monthly rents above P10,000 are excluded from the rental caps.

The DHSUD noted, however, that owners of boarding houses, dormitories, rental rooms, and “bed spaces” may only implement one rent adjustment within the year, even if the increased limit has not been reached.

New residential units that were built or leased out in 2025, on the other hand, may set their own rent.

Under Republic Act No. 9653, or the Rent Control Act of 2009, residential units are defined as “an apartment, house, and/or land on which another’s dwelling is located and used for residential purposes.”

It includes buildings or units used solely as “dwelling places, boarding houses, dormitories, rooms, and bed spaces offered for rent by their owners,” except for “motels, motel rooms, hotels, and hotel rooms.”

Buildings or units used for “home industries, retail stores, or other business purposes” are also considered residential units “if the owner thereof and his or her family actually live therein and use it principally for dwelling purposes.”

‘Just a small gift’

Mimi Doringo, secretary general of the urban poor group Kadamay, said the new rental cap was a “welcome development” for consumers.

But she added that the public should not just settle for the lowering of rent increases, as prices of daily necessities, such as food, water, and electricity, should also be reduced.

“The 2.3-percent rental cap for residential units is just a small gift. Policies that provide for a living wage for workers are also needed,” Doringo said in a text message to the Inquirer.

She added that the government should also provide support for farmers by giving them their own land, as well as allotting subsidies and compensation to ensure affordable food prices in the country.

The Philippines faces a housing backlog of 6.5 million, representing the number of dwelling units it needs for those who are homeless or displaced.

In September 2022, the Marcos administration launched the Pambansang Pabahay Para sa Pilipino Program, aimed at building one million housing units annually until 2028. —with a report from Inquirer Research