The Mietpreisbremse is Germany’s rent cap in tight housing markets. In designated zones, it limits the initial rent on a new lease to the local Mietspiegel plus ten percent.
What It Limits
The cap applies to the starting rent when a new tenant moves in, in areas a Bundesland has designated as having a strained housing market. It is currently extended into 2029, and tightening it has been a politically active topic.
Key Points
- Caps the initial rent on a new lease at Mietspiegel + 10% in designated zones
- Affects how quickly rental income can grow, so it belongs in any yield assumption
- Rules and designated zones change over time and vary by Bundesland