How is a Pennsylvania rent increase calculated when there is a percentage cap?
Take the current monthly rent, multiply by the cap percentage, and that is the maximum dollar increase. For example, a 5 percent cap on $2,000 monthly rent gives a maximum increase of $100, for a new rent of $2,100. Where the cap is "5 percent plus CPI capped at 10 percent" (such as California's AB 1482), look up the relevant regional CPI for the prior 12 months on the Bureau of Labor Statistics website. If CPI is 3 percent: 5 plus 3 equals 8 percent allowed (under the 10 percent cap). If CPI is 6 percent: 5 plus 6 equals 11 percent which is capped at 10 percent. If CPI is negative: only the base 5 percent applies. Round to the nearest dollar. Pennsylvania uses 68 P.S. 250.501 tenure-based notice: 15 days for tenancies under 1 year, 30 days for 1 year or more. No state rent cap. Rent changes on month-to-month tenancies follow the same notice ladder. Use a calculator rather than rely on memory; small CPI errors compound over multi-year tenancies.
Source: 68 P.S. 250.501 (Pennsylvania Landlord and Tenant Act 1951)
This is an informational answer based on 68 P.S. 250.501 (Pennsylvania Landlord and Tenant Act 1951) as of early 2026. It is not legal advice. Housing law changes year to year and local ordinances (especially in rent-controlled or rent-stabilized cities) can override or add to state law. For contested cases, consult a Pennsylvania-licensed attorney.