New York’s Good Cause Eviction Law Reshapes the Hudson Valley Rental Market

New York’s Good Cause Eviction Law Reshapes the Hudson Valley Rental Market

The landscape of rental housing in the Hudson Valley is undergoing a seismic shift with the implementation of New York’s Good Cause Eviction (GCE) law. With several municipalities in the region opting into the law, both landlords and tenants are recalibrating their expectations in a rental market already grappling with rising costs and limited availability.

For landlords in cities such as Kingston, Beacon, and Poughkeepsie, the new regulations place stricter controls on evictions and rent increases. For tenants, the law offers unprecedented protections against what many housing advocates call unjust removals and excessive rent hikes. But as with any sweeping policy, the real-world implications of GCE are complex and nuanced.

What Is the Good Cause Eviction Law?

The GCE law fundamentally shifts the balance of power in landlord-tenant relationships by requiring landlords to provide a legally justifiable reason for eviction. Among the permissible causes are nonpayment of rent (unless the increase is deemed excessive), lease violations, and nuisance behavior.

But perhaps the most contentious aspect of the law is its limitation on rent increases. If a landlord raises rent beyond a certain threshold—calculated as a percentage of the federally determined Fair Market Rent (FMR)—they may need to prove the hike is justified. For tenants, this means potential recourse against what they perceive as unfairly steep rent hikes.

Where Does the Law Apply?

While New York City is automatically covered under GCE, adoption in the Hudson Valley has been piecemeal. The following municipalities have opted in, applying additional protections to their rental markets:

• City of Kingston (FMR Exemption: 300%)

• City of Poughkeepsie (FMR Exemption: 345%)

• City of Beacon (FMR Exemption: 345%)

• City of Newburgh (FMR Exemption: 345%)

• Village of Nyack (FMR Exemption: 345%)

• City of Hudson (FMR Exemption: 345%)

• Village of Catskill (FMR Exemption: 275%)

The FMR Exemption means that if a unit’s rent exceeds this percentage of the HUD Fair Market Rent, it is not subject to GCE protections. Additionally, small landlords who own just one rental unit in New York State are automatically exempt.

The Financial Impact on Landlords and Tenants

The law’s influence extends far beyond eviction rules, reshaping how rent increases are structured. Below are the current Fair Market Rent figures in Dutchess, Ulster, and Orange Counties, along with the corresponding exemption thresholds:

Dutchess County

• 1 Bedroom: $1,492 (Exemption if rent > $3,655)

• 2 Bedroom: $1,907 (Exemption if rent > $4,672)

• 3 Bedroom: $2,371 (Exemption if rent > $5,799)

Ulster County

• 1 Bedroom: $1,371 (Exemption if rent > $3,358)

• 2 Bedroom: $1,799 (Exemption if rent > $4,408)

• 3 Bedroom: $2,371 (Exemption if rent > $5,799)

Orange County

• 1 Bedroom: $1,492 (Exemption if rent > $3,655)

• 2 Bedroom: $1,907 (Exemption if rent > $4,672)

• 3 Bedroom: $2,493 (Exemption if rent > $6,105)

For landlords whose units fall below these thresholds, the law effectively places a cap on rent hikes. Those who exceed the limits may face legal challenges from tenants seeking to dispute the increase.

What Landlords Need to Know

• Exemptions Exist. Small landlords with a single rental unit are not bound by the GCE law. Likewise, units that exceed the FMR exemption are also outside the law’s scope.

• Evictions Require Cause. Removing a tenant for reasons other than those explicitly permitted—such as a desire to raise rent significantly—is no longer an option.

• Rent Hikes Must Be Justifiable. While increases are not outright prohibited, they must remain within reasonable limits unless the unit is exempt.

What Tenants Need to Know

• Eviction Protections Are Stronger. Landlords must provide a valid legal reason for eviction.

• Excessive Rent Increases Can Be Challenged. If a rent increase seems unjustified, tenants can dispute it if the unit falls under GCE protections.

• Municipal Opt-Ins Matter. Not every town in the Hudson Valley has adopted the law, meaning tenant protections vary depending on location.

Looking Ahead: How Will the Law Shape the Hudson Valley Market?

The Good Cause Eviction Law has triggered both praise and criticism. Housing advocates argue that it creates much-needed stability for tenants who have faced unpredictable rent hikes and displacement. Landlords, on the other hand, contend that the law discourages investment in rental properties and could shrink the housing supply over time.

As implementation unfolds, the long-term impact remains uncertain. Will landlords be more cautious about raising rents? Will tenants feel emboldened to challenge increases? One thing is clear: the Hudson Valley’s rental market has entered a new era—one defined by greater oversight, evolving dynamics, and ongoing debate.

For landlords and tenants alike, staying informed is no longer optional—it’s essential.

 Have questions about how this law affects your rental property? Contact our real estate team today for expert guidance on navigating these changes.