Free NYC compliance tool

IAI Rent Increase Calculator

An Individual Apartment Improvement (IAI) lets the owner of a rent-stabilized apartment add a permanent rent increase for qualifying capital improvements. The increase is the creditable improvement cost divided by an amortization period — 168 months for buildings of 35 units or fewer, 180 months for larger buildings.

HSTPA caps the cumulative creditable cost over a rolling 15-year window: $15,000 for work before October 17, 2024, and $30,000 on or after that date. Enter the cost to see the monthly increase.

Improvement cost

Total qualifying capital cost of the apartment improvement.

Building size

≤35 units → ÷168; >35 → ÷180.

Improvement date

Cap rose to $30,000 on 2024-10-17.

Permanent monthly IAI rent increase

Creditable cost

Under the $30,000.00 lifetime cap

$20,000.00

Amortization (÷ 168 months)

35 units or fewer

÷ 168

Monthly rent increase

= $20,000.00 ÷ 168

$119.05

Under HSTPA, the lifetime IAI cost cap is $15,000 for work before 2024-10-17 and $30,000 on or after it, measured cumulatively over a rolling 15-year window. The monthly increase is the creditable cost divided by 168 months (buildings of 35 units or fewer) or 180 months (larger buildings). Post-HSTPA IAI increases are temporary (a 30-year removal applies); documentation and, in some cases, DHCR filing are required.

General information, not legal advice. These calculators are educational estimates based on published NYC/NYS figures and may not reflect the latest orders, your specific lease, or building-specific facts. Always verify with NYS HCR / NYC DHCR (and counsel where needed) before acting.

Frequently asked

How is the IAI rent increase calculated?: It is the creditable improvement cost divided by the amortization period in months: ÷ 168 for buildings of 35 units or fewer, ÷ 180 for buildings with more than 35 units. The result is a permanent (subject to a 30-year removal post-HSTPA) monthly rent increase.
What is the IAI cost cap?: Under HSTPA the cumulative creditable IAI cost is capped over a rolling 15-year window — $15,000 for improvements made before October 17, 2024, and $30,000 for improvements on or after that date. Prior IAI work on the same apartment counts against the cap.
Is the IAI increase permanent?: Post-HSTPA IAI increases are temporary — a 30-year removal applies, after which the increase comes out of the legal rent. Pre-HSTPA increases were permanent. Tenant consent and DHCR documentation requirements can also apply.
What about MCI increases?: A Major Capital Improvement (MCI) is building-wide rather than per-apartment, and carries its own rules — a 2%-per-year collectibility cap (post-HSTPA), a longer amortization, a 30-year removal, and a bar in buildings below a regulated-unit threshold. MCI is not modeled by this calculator; consult HCR Fact Sheet #24.

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IAI Rent Increase Calculator

HSTPA caps the cumulative creditable cost over a rolling 15-year window: $15,000 for work before October 17, 2024, and $30,000 on or after that date. Enter the cost to see the monthly increase.

Frequently asked

How is the IAI rent increase calculated?

It is the creditable improvement cost divided by the amortization period in months: ÷ 168 for buildings of 35 units or fewer, ÷ 180 for buildings with more than 35 units. The result is a permanent (subject to a 30-year removal post-HSTPA) monthly rent increase.

What is the IAI cost cap?

Under HSTPA the cumulative creditable IAI cost is capped over a rolling 15-year window — $15,000 for improvements made before October 17, 2024, and $30,000 for improvements on or after that date. Prior IAI work on the same apartment counts against the cap.

Is the IAI increase permanent?

Post-HSTPA IAI increases are temporary — a 30-year removal applies, after which the increase comes out of the legal rent. Pre-HSTPA increases were permanent. Tenant consent and DHCR documentation requirements can also apply.

What about MCI increases?

A Major Capital Improvement (MCI) is building-wide rather than per-apartment, and carries its own rules — a 2%-per-year collectibility cap (post-HSTPA), a longer amortization, a 30-year removal, and a bar in buildings below a regulated-unit threshold. MCI is not modeled by this calculator; consult HCR Fact Sheet #24.