Legal term

Reference interest rate

The interest rate on which rent adjustments are based. The Federal Office for Housing publishes it quarterly on the basis of mortgage interest rates.

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Legal basis

Art. 12a Ordinance on the Rental and Lease of Residential and Commercial Premises (VMWG)

Last updated

10 October 2026 · Tenancy law

The reference interest rate is based on the average interest rate of domestic mortgage claims and is rounded to the nearest quarter of a percentage point. The Federal Office for Housing publishes it quarterly. In October 2026, it stands at 1.25 percent.

If the reference interest rate rises by a quarter of a percentage point, landlords may increase the rent by a calculated maximum of 3 percent. If it falls, tenants can request a reduction, by a calculated amount of around 2.91 percent. The decisive figure is the reference interest rate on which the current rent is based, and adjustments are only possible if the deadlines and formal requirements are observed.

In practice

The lease or the most recent rent adjustment states the reference interest rate on which the rent is based. This figure is the starting point for any adjustment.

Frequently asked questions

How often is the reference interest rate published?

Quarterly, at the beginning of March, June, September and December, by the Federal Office for Housing.

Does the rent change automatically?

No. The landlord must notify an increase on the official form, and the tenant must request a reduction. Without an adjustment, the existing rent remains in place.