Rent control in Paris in 2026: the concrete implications of the 20 July decree

Two overlapping systems in Paris — do not confuse them

Rent control in Paris is based on two distinct mechanisms that apply simultaneously. Confusing them leads to calculation errors when drafting leases.

Mechanism 1 — Control of rent evolution (tight zone) Applies to 1,150 municipalities in high-demand areas, including Paris. Renewed by the decree of 20 July 2026 from 1 August 2026 to 31 July 2027. Principle: during a re-letting or lease renewal, the rent cannot be increased freely—it must remain identical to that of the previous tenant, except in specific cases.

Mechanism 2 — Control of rent levels (ELAN Act) Applies only to Paris, Bordeaux, Montpellier, and 69 other experimental municipalities. Principle: the rent cannot exceed a maximum reference rent (loyer de référence majoré) set annually by prefectural decree (DRIHL in Paris). The new 2026 reference rents came into force on 1 July 2026 in Paris.

What the 20 July 2026 decree changes for Parisian landlords

The decree renews the 'tight zone' system for one year. In Paris, where the ELAN system also applies, the combined rules for re-letting (new tenant) are as follows:

In the event of a renewal, the landlord can only revise the rent in line with the IRL for the lease's reference quarter. No discretionary increase is permitted.

2026 reference rents in Paris: numerical examples

The 2026 DRIHL grids (in force since 1 July 2026) for some common configurations in the PNW districts:

For a 45 m² furnished T2 pre-1946 in the 9th: the cap is set at approximately €1,710/month excluding charges. Exceeding this threshold without a justified rent supplement exposes the landlord to a fine of up to €5,000 (for individuals) or €15,000 (for legal entities), and an obligation to refund the overpayment. More than 800 formal notices were issued by the DRIHL in 2025.

To check your rent address by address, the official simulator is available on Service-Public.fr.

What is exempt from rent level control (ELAN system)

Several situations allow for exemption from the DRIHL cap—with significant nuances:

Civil Code lease (legal entity) — when the lessee is a company or association renting to house an employee or executive, the lease falls under the Civil Code and not the 1989 Act. Rent level control does not apply in this case. Caution: if the property becomes the occupant's de facto primary residence, reclassification as a residential lease remains possible. Case law from the Paris Judicial Tribunal (TJ Paris, 2 April 2026, no. 25/07221) confirms that reclassification is not automatic—but it is increasingly scrutinised. A well-drafted lease, with an identified beneficiary and documented situation, remains the best safeguard.

Secondary residence lease (individual) — an individual who already has a primary residence elsewhere may rent a Parisian property under a Civil Code lease as a secondary residence, with a freely set rent. The condition is that the secondary occupation must be genuine and justifiable. If the property becomes the tenant's de facto primary residence, reclassification is possible.

Neuilly-sur-Seine, Levallois-Perret, Boulogne-Billancourt — subject to the 'tight zone' decree (controlled rent evolution) but outside the ELAN system (free rent levels). The DRIHL reference rent does not apply there.

Tourist accommodation (Meublé de tourisme) — outside ELAN control, but limited to 90 days per year in Paris for a primary residence.

The rent supplement: conditions and risks

A rent supplement exceeding the maximum reference rent is legal if the property features exceptional characteristics not taken into account in the grids: monumental view, private terrace or garden, documented high-end amenities. It must be explicitly mentioned in the lease and can be challenged by the tenant before the Departmental Conciliation Commission within 3 months of signing. An unjustified supplement is systematically cancelled.

PNW Partners verifies the compliance of every rent in its portfolio upon each renewal, and assists landlords in the legal optimisation of their yields via our furnished or unfurnished rent simulator in Paris.

The ELAN Act system formally expires on 23 November 2026. A bill adopted at the first reading by the National Assembly in December 2025 aims to make it permanent—the vote in the Senate is expected in the autumn of 2026.

Also read: Corporate lease in Paris: the complete guide — Mobility lease in Paris: conditions, duration and rent — Renting out your primary residence furnished: 3 options