Rent Caps in Germany: Understanding Mietpreisbremse Laws

The Mietpreisbremse is a federal law that caps rent increases on new leases in areas with a tight housing market. It protects tenants, but it doesn't replace an adequate supply of housing.

What is the Mietpreisbremse in Germany?

Under Section 556d BGB, rent on a new lease may not exceed the ortsübliche Vergleichsmiete (local comparative rent) by more than ten percent. The rule doesn't apply automatically nationwide; it only applies in areas that a state government has designated by ordinance as having a tight housing market, for example because rents there are rising markedly faster than the national average or the population is growing faster than the housing stock.

How long can a Mietpreisbremse ordinance last?

Federal law requires every state ordinance to expire by December 31, 2029, at the latest, as set out in Section 556d BGB. Berlin and Hamburg most recently extended their ordinances effective January 1, 2026, through that date. Whether and how long the Mietpreisbremse applies where you live is best confirmed via your state government's website or the local tenant association.

How does the 10 percent rule work?

The ortsübliche Vergleichsmiete is determined via the local Mietspiegel and reflects what was actually agreed for comparable apartments over the past six years. On a new lease, the agreed rent may not exceed that figure by more than ten percent. Exempt are new buildings first ready for occupancy after October 1, 2014, and comprehensively modernized apartments.

What to do if a rent looks too high

Start by checking the local Mietspiegel for the ortsübliche Vergleichsmiete of a comparable apartment. If the asking rent is well above that, raising the issue with the landlord and, in some cases, reclaiming rent already overpaid may be an option. The Deutscher Mieterbund and local tenant associations advise on this and know which ordinance applies in your city.

How Waitly supports your apartment search

Waitly brings together current rental listings, making it easier to find apartments that match your budget and target area, whether or not the Mietpreisbremse applies where you're looking.

Bottom line

The Mietpreisbremse caps rent increases on new leases at ten percent above the ortsübliche Vergleichsmiete, but only in specifically designated areas, and federal law requires it to expire by the end of 2029 at the latest. Knowing your city's Mietspiegel lets you judge an offer reliably.

Frequently Asked Questions

What is the Mietpreisbremse?

A law under Section 556d BGB that caps rent on new leases in areas with a tight housing market at no more than ten percent above the ortsübliche Vergleichsmiete.

How do I find the ortsübliche Vergleichsmiete?

Via your city's Mietspiegel, which is based on rents actually agreed for comparable apartments over the past six years.

Are there exceptions to the Mietpreisbremse?

Yes. Apartments first ready for occupancy after October 1, 2014, and comprehensively modernized apartments are exempt.

How much longer will the Mietpreisbremse apply?

Every state ordinance must expire by December 31, 2029, at the latest. Many cities, including Berlin and Hamburg, have extended their ordinances through that date.