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Will the household income increase in 2026? This is how to calculate the new value

The rent values could increase by 2.24% in 2026, according to the revised inflation data published by the Instituto Nacional de Estatística (INE). How is the new value calculated?

“The calculation of the new rent is simple and applies to all rental agreements, provided that the contract does not specify another update criterion,” explains the Salto do Santander blog.

Example:

Formula: new rent = current rent × 1.0224
If you currently pay 800 euros monthly rent: 800 × 1.0224 = 817.92 euros
Thus, the increase represents about 18 euros per month.

The Salto blog reminds that “this coefficient is the maximum allowed value“, so “the landlord can choose to apply a lower increase or simply not update the rent“.

Ultimately, rents could increase by 2.24% in 2026 (below the estimate of 2.25%)

According to the final data from INE, over the past 12 months until August, the average price index variation, excluding housing, was 2.24%. This figure serves as the basis for the coefficient used for the annual rent adjustments for the coming year under the Novo Regime do Arrendamento Urbano (NRAU).

Lusa | 15:01 – 10/09/2025

Rents may rise in 2026, but there are rules and limits

It should be noted that the “rent update must be communicated in writing by the landlord, with a minimum notice of 30 days before it becomes effective”.

“If the landlord has not updated the rent in the last three years, they can apply accumulated coefficients, provided they are within the legal limit, which could result in a total increase of around 11%,” explains the same site.

Additionally, the update notice must clearly indicate:

  • The new rent value,
  • The date from which it takes effect, and
  • The update coefficient used.
     

“This communication must comply with the rules specified in article 1077.º of the Civil Code and be accompanied by proof of the coefficient published by INE,” the Salto further notes.

This year’s rate, to be applied in 2026, signifies an acceleration compared to last year (applied to rents in 2025), when it was set at 2.16%.

Rents may rise in 2026, but there are rules and limits. We explain

Only after publication in the Diário da República will landlords be able to inform tenants of the rent increase, which can only effectively occur 30 days after this notice. Find out everything.

Beatriz Vasconcelos with Lusa | 07:59 – 11/09/2025

Attention, tenants

The Salto explains that “those living in rented homes should expect a slight increase in monthly expenses in 2026“, as the “2.24% update coefficient may translate to an additional 15 to 30 euros per month, depending on rent value and region”.

“In a context where housing expenses already represent more than 35% of many families’ income, this increase could weigh on the budget and require some reevaluation of financial management. Although the increase is moderate, it’s important to remember that the update is not mandatory. The landlord can choose to keep the current rent amount, provided they adhere to the contract conditions,” it can also be read.

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