Tehran Rents Outpace 25 Percent Legal Cap as Some Deposits Rise to 1 Billion Tomans

According to Khabar Online, citing Mehr News Agency, published Sunday, September 6, 2026 (15 Shahrivar 1405), field reports point to some landlords exceeding the 25 percent cap on rent and deposit increases that Iran's three branches of government set for 1405 (2026 to 2027) residential lease renewals. One tenant on Tehran's Piroozi Street, who signed last year at a 150 million toman deposit and 12 million tomans in monthly rent, said his landlord is now demanding either an extra 1 billion toman deposit or 30 million tomans a month to renew, a figure he said far exceeds the area's actual market rate, estimated by local real estate agents at about 700 million tomans for a full deposit or up to 17 million tomans in rent.

According to the latest data from Iran's Statistical Center, the annual inflation rate for residential unit maintenance and repair services reached 65.9 percent in the month ending August 22 (Mordad 1405), a figure showing that cost pressure on tenant households is not limited to rent and deposits alone.