NYC Rent Guidelines Board Simulator

Experience the challenge of setting rent increases that balance tenant affordability with building viability. Adjust the market-rate and RGB percentage and see how it affects building economics.

Understanding the Challenge

Your Objective

Set rents that ensure each building achieves a Net Operating Income (NOI) of at least $1 per month while considering the constraints of NYC's rent regulation system. NOI of $0 is not good, because there is absolutely no cushion to make emergency repairs or address other unforseen needs. Rent stabilized units are limited to what the Rent Guidelines Board sets out as annual rent increase limits. Market units are not limited. Rent controlled units are, for this simulation, not allowed to change, reflecting the very low rent they tend to have. Since many buildings contain a mix of unit types, with some being fully rent stabilized and some fully market, you can see how the dynamics of rent changes impact different kinds of buildings.

Constraints

  • • Rent-stabilized units are limited to the RGB increase
  • • Market-rate units have no rent increase limits
  • • Rent-controlled units are relatively rare, and often have considerably lower rent than other units.
  • • Pre-1974 buildings have higher maintenance costs

Real-World Context

The NYC Rent Guidelines Board meets annually to set rent increases for rent-stabilized apartments. Board members must balance the needs of tenants (affordability) with building owners (maintaining properties). This simulation demonstrates the economic trade-offs involved in these critical housing policy decisions.

RGB Decision Panel

RGB-controlled increase for stabilized units

Owner-set increase for market rate units

Starting Rent Rates

Rent Stabilized: $10/unit/month
Market Rate: $10/unit/month
Rent Controlled: $2/unit/month

Current Rates

Stabilized: $10.00/month
Market: $10.00/month
Controlled: $2.00/month (cannot change)
Building A
Monthly Revenue
$100.00
Monthly Expenses
$110.00
Stabilized Units$10.00/unit
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00

Toggle to older building pre-1974 rent laws, which tend to have higher expenses.

NOI:$-10.00
Building B
Monthly Revenue
$100.00
Monthly Expenses
$110.00
Stabilized Units$10.00/unit
$10.00
$10.00
$10.00
$10.00
$10.00
Market Rate Units$10.00/unit
$10.00
$10.00
$10.00
$10.00
$10.00

Toggle to older building pre-1974 rent laws, which tend to have higher expenses.

NOI:$-10.00
Building C
Monthly Revenue
$100.00
Monthly Expenses
$110.00
Market Rate Units$10.00/unit
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00
$10.00

Toggle to older building pre-1974 rent laws, which tend to have higher expenses.

NOI:$-10.00
Building D
Monthly Revenue
$92.00
Monthly Expenses
$110.00
Stabilized Units$10.00/unit
$10.00
$10.00
$10.00
$10.00
$10.00
Market Rate Units$10.00/unit
$10.00
$10.00
$10.00
$10.00
Rent Controlled Units$2.00/unit
$2.00

Toggle to older building pre-1974 rent laws, which tend to have higher expenses.

NOI:$-18.00