Iran's roads and urban development minister says the 25 percent rent increase cap is binding on landlords

Iran's minister of roads and urban development said on Saturday 1 August 2026 (10 Mordad 1405) that the ceiling on residential rent increases relative to last year is 25 percent, and that all landlords are obliged to comply with the approved cap.

He said landlords must hand their previous year's tenancy contracts to property agents so that the permitted increase can be calculated from a documented base.

The rent cap is the instrument the government uses to contain the rising cost of renting. The latest Statistical Centre of Iran report put monthly rent inflation in Tir 1405 (June to July 2026) at 2.3 percent, below the overall monthly inflation rate.