Mietpreisbremse runs to 31 Dec 2029: what applies from 1 Jan 2026, Bavaria’s 285-municipality rule and the 16 Jul 2026 amendment—how to verify your address

Federal law: extended to 31 December 2029 and what that means from 1 January 2026

On 17 July 2025 the Bundestag passed the “Gesetz zur Änderung der Regelungen über die zulässige Miethöhe bei Mietbeginn und zur Änderung anderer Gesetze”. It entered into force on 23 July 2025 and extended the legal basis for state rent-brake ordinances to 31 December 2029. Without this act, the Mietpreisbremse would have lapsed at the latest on 1 January 2026. The government and parliament state the goal is to curb re-letting rents in areas with tight housing markets.

Core rules that continue to apply

• Cap at re-letting: In designated areas, the rent at the start of a new tenancy may be at most 10% above the local comparative rent (“ortsübliche Vergleichsmiete”), unless an exception applies. This remains anchored in sections 556d to 556g of the German Civil Code (BGB). The landlord may rely on prior rent (“Vormiete”) or certain modernisations, but strict disclosure duties apply.

Key exceptions and disclosures under the BGB

• New builds: The cap does not apply to a dwelling first used and let after 1 October 2014. • First let after comprehensive modernisation: The cap also does not apply to the first letting after a comprehensive modernisation. • Disclosures: If the landlord relies on prior rent or an exception, they must disclose the relevant facts before the tenant’s offer. Without proper disclosure, the landlord cannot rely on those grounds for two years after later curing the defect. • Tenant’s objection (“Rüge”): A tenant can reclaim overpaid rent only after they object under section 556g(2) BGB.

Bavaria’s Mieterschutzverordnung from 1 January 2026: coverage and instruments

Bavaria put a new Mieterschutzverordnung (MiSchuV) into force from 1 January 2026. It originally designated 285 municipalities as areas with tense housing markets. In those municipalities three federal instruments apply: (1) the Mietpreisbremse cap under sections 556d ff. BGB; (2) the reduced general cap on cumulative rent increases (“Kappungsgrenze”) to 15% over three years under section 558(3) sentence 2 BGB; and (3) the extended block on termination after condo conversion and sale (up to 10 years) under section 577a(2) sentence 1 BGB. The legal basis and the full municipality list are set out in the ordinance and its annex. An official information page confirms the application in 285 municipalities and points to the annex as the authoritative list.

The 16 July 2026 amendment: Reut (Rottal‑Inn) removed

On 16 June 2026 Bavaria enacted the “Verordnung zur Änderung der Mieterschutzverordnung”, which took effect on 16 July 2026. The amendment deleted items 2.4 and 2.4.1 of the annex—i.e., the heading for the district Rottal‑Inn and the municipality of Reut—because Reut had been included due to an e‑mail transmission error during the 2025 consultation. The official reasoning (published 1 July 2026) explains the correction and confirms that Reut was the only Rottal‑Inn municipality in the annex. Practically, this reduced the annex by one municipality from 16 July 2026 onward.

How to verify whether a specific Bavarian address is covered

Use official sources. Do not rely on portals that paraphrase the law.

Step 1—Identify the municipality: Use the BayernAtlas search to find the municipality for the property’s address. The address search in BayernAtlas covers all official street names and addresses; it shows the municipality boundary on the map. Alternatively, use the official municipal directory (AGS/ARS) from the federal‑state statistics portal to match address to municipality.

Step 2—Check the legal annex: Open Bavaria’s Mieterschutzverordnung and its annex. The annex is the authoritative list that determines where: (i) the Mietpreisbremse cap applies; (ii) the 15% “Kappungsgrenze” applies; and (iii) the extended conversion termination block applies. Cross‑check that your municipality name appears verbatim in the annex.

Step 3—Apply the 16 July 2026 correction: If the address is in Reut (municipality Reut, district Rottal‑Inn), note that Reut was removed with effect from 16 July 2026; from that date, Bavaria’s MiSchuV no longer applies there. If your draft lease starts after 16 July 2026, do not assume coverage.

Step 4—Verify BGB exceptions: Even in a listed municipality, confirm whether the unit is exempt under section 556f BGB (first use and letting after 1 Oct 2014; or first let after comprehensive modernisation). If the landlord relies on an exception or previous rent, insist on the statutory disclosures under section 556g(1a) BGB before signing.

For properties outside Bavaria, repeat Step 2 with your state’s current ordinance; states publish their own lists.

Investor notes and risks

• Drafting risk: If you price a re‑letting above the cap in a covered municipality without a valid exception or with missing disclosures, tenants may reclaim overpaid rent retroactively after a formal objection. Courts apply the statute; local custom is irrelevant. • Due diligence: For acquisitions in Bavaria with in‑place tenants, verify the municipality in the MiSchuV annex and whether the 15% cap under section 558(3) BGB applies, as this can constrain future growth assumptions. • Professional advice: For contract drafting or disputes, engage a German attorney (Fachanwalt für Mietrecht) or a local tenants’ association for a counter‑check. Propertyfinder.de does not provide legal advice.