Massachusetts is moving closer to a potential statewide rent control vote in 2026 — and the investment community is already reacting.

At The Charles King Group, we are fielding an increasing number of calls from real estate investors trying to understand how this proposal could impact property values, long-term cash flow, and exit strategies. While nothing has been finalized, the momentum behind the initiative is already influencing underwriting assumptions and investment decisions across the state.

The Rent Control Ballot Initiative Is Gaining Momentum

The proposed “Keep Massachusetts Home” rent control initiative has cleared a major milestone, submitting more than 124,000 raw signatures, far exceeding the number required to advance toward the 2026 ballot.

If approved by voters, this initiative would impose mandatory statewide rent control across all 351 Massachusetts cities and towns — a significant departure from the state’s prior rent control framework, which was repealed by voters in 1994 and previously required municipalities to opt in.

Key Elements of the Proposed Rent Control Law

If enacted, the proposal would include:

• Annual rent increases capped at the lower of CPI or 5%

• A rent baseline established as of January 31, 2026

• Exemptions for:

  • Owner-occupied properties with four or fewer units

  • New construction for the first 10 years

For investors, the baseline date alone could materially impact asset valuations heading into 2026.

Investors Are Already Adjusting Strategy

Regardless of whether the measure ultimately passes, the anticipation of rent control is already reshaping investor behavior.

We are actively speaking with owners — particularly of legacy multifamily properties — who are considering bringing assets to market in Q1 2026. Many are evaluating whether now represents an optimal exit window before rent caps, regulatory uncertainty, or valuation compression potentially take hold.

For long-term holders, the concern goes beyond rent caps. Investors are increasingly focused on the loss of operational flexibility, especially as insurance, taxes, labor, and maintenance costs continue to rise.

Capital Migration Is Becoming Part of the Conversation

Another trend we are seeing is early-stage discussion around capital redeployment outside Massachusetts.

If statewide rent control is enacted, Massachusetts could become a more challenging environment for yield-focused investors. As a result, many clients are already exploring markets that offer:

• Lower regulatory risk

• More predictable rent growth

• Business-friendly landlord policies

Why New Hampshire Is on Investors’ Radar

One market consistently coming up in these conversations is New Hampshire.

New Hampshire offers:

• No rent control

• No state income tax

• No sales tax

• A growing renter population driven by spillover from Greater Boston

If the ballot initiative passes, increased investor demand in southern New Hampshire could accelerate — particularly for multifamily, mixed-use, and value-add assets in commuter-friendly locations.

The Bigger Picture for Massachusetts Investors

Mandatory statewide rent control would represent one of the most aggressive regulatory shifts Massachusetts has ever seen. Key risks investors are evaluating include:

• Reduced long-term NOI growth

• Valuation pressure on stabilized assets

• Decreased buyer demand in rent-restricted markets

• Increased incentive to exit earlier in the investment cycle

At the same time, uncertainty often creates opportunity — for sellers seeking liquidity, buyers pricing in risk appropriately, and investors repositioning capital into more favorable markets.

What Investors Should Be Doing Now

With 2026 still ahead, now is the time for investors to:

• Reevaluate hold vs. sell strategies

• Stress-test underwriting assumptions

• Explore cross-border investment options

• Understand how a January 2026 rent baseline could impact asset value

At The Charles King Group, we will continue monitoring this initiative closely and advising clients based on real-time market sentiment, transaction activity, and policy developments.

One thing is already clear: even before a vote is cast, this proposal is influencing investor behavior across Massachusetts.

FAQ 1: Is rent control coming back to Massachusetts in 2026?

Massachusetts voters may vote on a statewide rent control initiative in 2026. While it has not yet passed, the proposal is advancing through the ballot process and is already influencing investor behavior.

FAQ 2: How would statewide rent control affect multifamily property values?

Rent control could limit rent growth, reduce long-term NOI, and place downward pressure on valuations — particularly for stabilized multifamily assets.

FAQ 3: Are any properties exempt from the proposed rent control law?

Yes. Exemptions include owner-occupied properties with four or fewer units and new construction for the first 10 years.

FAQ 4: Why are investors considering selling before 2026?

Many investors want to exit before potential rent caps, regulatory uncertainty, or valuation compression impact pricing and buyer demand.

FAQ 5: Are investors moving capital out of Massachusetts?

Some investors are exploring alternative markets like New Hampshire, which offers no rent control, favorable tax policies, and strong renter demand.