2 rules apply — the local one first, then the county and state rules that bind alongside it.
Verified on 2026-08-17.
Montclair caps an annual increase at 4.00% of the base rent, at 2.5% where at least one tenant is 65 or over, and allows a one-time 6% where the landlord has collected no increase on an existing tenant since 1 May 2020. Chapter 257's exemption is owner-occupancy, not size: a building of three or fewer units the owner lives in.
The widely reported "fewer than four units" threshold is not what the chapter says: §257-2B(1) exempts units in buildings the owner resides in that contain three or fewer residential units, and §257-2B(7) exempts single-family homes and single condominium and co-operative units. A non-owner-occupied two- or three-family is covered.
The figure circulating in press accounts is 4.25%; the codified cap is 4.00%. The chapter in force was adopted on 19 April 2022 and repealed the litigated 2020 ordinance outright, and it was amended again on 23 May 2024 — an amendment two years on is good evidence that it is operative. No substantial-rehabilitation exemption appears in §257-2B.
Exemptions
Sources
Verified on 2026-08-17.
New Jersey has no statewide rent control. The Department of Community Affairs' 2026 survey of all 564 municipalities found 120 with an ordinance and 444 without, and their caps, unit thresholds, exemptions and vacancy rules differ town by town.
This municipality's ordinance has not been read into this knowledge base. Check the DCA's survey — it names every municipality and gives the unit threshold and the increase limit for each — and then read the ordinance itself or call the rent board, before assuming rents can be reset on purchase or turnover. One statewide limit does apply everywhere: N.J.S.A. 2A:42-84.5 keeps municipal rent control off housing completed after 25 June 1987 for 30 years from completion.
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