Rent
Germany's rent cap in 2026: where it applies and how to reclaim overpaid rent
You move into a new flat and wonder whether the rent is even allowed. Germany's rent cap (Mietpreisbremse) is meant to limit exactly that, yet many tenants don't know their rights and overpay for years. Here is what the rule limits, where it applies and how to get your money back.
What the rent cap limits
The rent cap is set out in § 556d BGB. It says: in areas with a tight housing market, the rent at the start of a new tenancy may not exceed the local reference rent by more than 10 percent.
Important: this is about the rent on re-letting. It is different from the capping limit (Kappungsgrenze, § 558 BGB), which limits increases during an ongoing tenancy, generally to 20 percent over three years, or 15 percent in tight markets.
Extended to the end of 2029
The rent cap was previously limited to the end of 2025. A law of 17 July 2025 extended it to 31 December 2029. The 10 percent limit and the exceptions stayed the same; the previous five-year limit on state ordinances was removed. In January 2026 Germany's Federal Constitutional Court declined to hear a constitutional complaint against the rent cap, confirming the rule. The federal states still have to designate the covered areas by ordinance, now with effect until the end of 2029 at the latest.
Where it applies
The rent cap does not apply everywhere automatically. Each federal state designates by ordinance which cities and municipalities count as a tight housing market. This mainly affects large cities and metro areas such as Berlin, Munich, Hamburg, Cologne, Frankfurt and many university towns.
Which areas are covered, and how long each ordinance runs, changes over time. Always check the current state ordinance for your city. Vimmo matches the address against the applicable data automatically.
The exceptions
In these cases the cap does not apply, or applies differently:
- New build: flats first used and let after 1 October 2014 are exempt.
- Comprehensive modernisation: a comprehensively modernised flat is treated similarly to a new build.
- Higher previous rent: if the previous tenant's rent was already above the limit, it may continue to be charged at that level.
The landlord must inform you of these exceptions in writing before the contract is signed, otherwise they cannot rely on them later.
Finding the local reference rent
The benchmark is the local reference rent for flats of similar type, size, fittings, condition and location. Sources:
- The city's qualified rent index (Mietspiegel), if one exists.
- A simple rent index or a rent database.
- Comparable flats.
If your base rent is more than 10 percent above this value and no exception applies, you are probably overpaying.
Reclaiming money: the objection
You do not get overpaid rent back automatically. You must object (rügen), i.e. assert the breach to the landlord. From the point of a qualified objection you can reclaim the difference. For contracts from 2019 the rules were made more tenant-friendly. The exact deadlines and conditions depend on the contract date, so when in doubt a tenants' association is worth the visit.
What this means for you
Over the life of a contract, even small overpayments add up to large sums. Checking whether the rent is permitted before you sign saves the dispute later. That is what Vimmo is for: the app compares the asking rent for your address against local levels and tells you whether it is fair, before you sign.
Sources
This article is not legal advice. Vimmo provides AI-based estimates without warranty.
Frequently asked questions
Does the rent cap apply in my city?
It depends on your federal state's ordinance. Many large cities and university towns are covered; rural regions often are not. Check the current ordinance or have the address checked in Vimmo.
What's the difference between the rent cap and the capping limit?
The rent cap limits the rent when re-letting. The capping limit restricts rent increases during an ongoing tenancy. Both can apply alongside each other.
How much overpaid rent can I reclaim?
The difference between the rent paid and the permitted rent, from the point of a qualified objection. On long-running contracts that can be several hundred to a few thousand euros.
Does the landlord have to tell me the reference rent?
On request, the landlord must disclose the facts they rely on for an exception. A full justification of the rent level is not owed in every case.
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