Rental rate increase control.
HB 1162 would create a new chapter in Indiana law regulating rent increases for most rental units beginning July 1, 2025. The bill limits a landlord’s gross rental rate increase over any 12-month period to the lesser of 5% plus the regional cost-of-living increase, or 10%, measured against the lowest gross rental rate charged in the prior 12 months. It also bars more than two rent increases in a 12-month period for the same tenant, requires written notice of increases, and requires rental agreements entered or renewed after June 30, 2025 to separately disclose the gross rent and any discounts, incentives, concessions, or credits.
The bill includes several exemptions, including units already subject to stricter local ordinances, restricted affordable housing, certain dormitories, owner-occupied duplexes, and some separately alienable residential property owned by individuals rather than corporations, LLCs with corporate members, or REITs. It also allows owners of affordable housing developments and certain restricted affordable housing to set an initial unassisted rent under specified conditions, while making later increases subject to the cap. Tenant waivers of the chapter would be void, and the law would expire on December 31, 2030.
HB 1162 would affect Indiana’s landlord-tenant and property law by imposing statewide rent stabilization rules on covered rental units and by limiting how quickly rents can rise during an existing tenancy. It would also create new disclosure obligations in rental agreements and restrict subleasing above the allowable rate. In addition, the bill directs the Legislative Services Agency to report by July 1, 2030 on the law’s effects on Indiana’s housing market, signaling that the legislature wants to evaluate the policy’s real-world impact before or around the time of expiration.
Because no committee transcript or vote history is provided, there is no recorded floor or committee sentiment to assess. Based on the bill text alone, the measure appears designed to provide tenant protections and predictability in rent increases, while preserving some flexibility for landlords through exemptions and a relatively moderate cap tied partly to inflation. The absence of recorded debate means there is no documented opposition or support in the supplied materials, but the bill’s rent-control approach would likely be the main point of policy interest and potential controversy.
HB 1162 would add IC 32-31-8.7 to the Indiana Code and impose statewide limits on rent increases for covered residential units. It would regulate the timing, size, and disclosure of rent increases, prohibit tenant waivers, and require a later legislative report on housing-market effects. The bill would also create exemptions for certain housing types and ownership structures, and it would sunset at the end of 2030.
No committee discussion or vote data was provided, so there is no documented legislative sentiment in the supplied record. From the bill text, the policy direction is tenant-protective and aimed at limiting sharp rent increases, while still allowing some exemptions and inflation-linked growth for landlords.
The central point of contention is likely the rent cap itself, which would limit landlords’ ability to raise rents during an existing tenancy. Potentially contentious details include the use of a statewide cap instead of local control, the formula tying increases to CPI plus 5% up to 10%, the restriction to two increases per year, and the treatment of exemptions for affordable housing, owner-occupied duplexes, and certain individually owned properties. Landlords and property owners would likely focus on reduced flexibility and compliance burdens, while tenant advocates would likely support the protections and disclosure requirements.