2026 council tax increase: Rent out a room long-term to offset your expenses

Faced with an intensifying housing crisis, French tax legislation is tightening significantly for owners of unoccupied or underutilized properties. With the 2026 housing tax increase coming into effect, keeping a second home empty for a large part of the year or a vacant property is becoming a major financial drain. At Roomlala, we understand how heavily these new charges can weigh on your family budget or your real estate profitability.

Fortunately, there are legal, socially responsible, and highly advantageous solutions to counter this tax pressure. Renting out part of your home for the long term, whether via a student lease or a mobility lease, not only allows you to escape these penalties but also to generate tax-free income. In this article, we break down the new 2026 legal framework for you and explain how renting out a room as a homestay can turn your taxes into guaranteed income.

Read also: CIN regulations in Italy: Why long-term room rentals are appealing to hosts at the end of 2026, PLF 2027 and furnished rentals: What hosts need to know this autumn and 2026 Housing Law: What is changing for room rentals in Spain

Understanding the 2026 housing tax increase and tax pressure

The year 2026 marks a turning point in French local taxation. Following Decree No. 2025-1267 of December 22, 2025, more than 3,600 municipalities are now classified as "tense zones." This classification is more than just an administrative label: it authorizes these municipalities to apply a massive surcharge on second homes. This housing tax increase on second homes (THRS) can now reach up to 60%, depending on municipal council votes. For a property owner, the year-end bill can therefore soar by several hundred, or even thousands, of euros.

But that's not all. Legislators have also decided to take direct aim at completely unoccupied properties. The 2026 Finance Act has enacted the merger of the tax on vacant homes (TLV) and the housing tax on vacant homes (THLV). As of January 1, 2027, these two taxes will merge into a single tax (the TVLH), with rates that will be revised even higher. The government's objective is clear: to force unused square footage back onto the market to house students and workers.

Be careful: a crucial point of vigilance is needed here. Many owners believe they can offset these taxes by engaging in short-term seasonal rentals (such as Airbnb). This is a strategic error. Short-term tourist rentals do not change the tax status of your property. Since the accommodation does not constitute the main residence for your transient guests, you remain liable for the housing tax increase and the tax on vacant homes. To free yourself from these charges, the only way out is to turn to long-term rentals.

Making a second home or vacant property profitable with long-term rentals

To cancel the liability for the THRS or TLV, the golden rule is simple: your property, or a significant part of it, must become the main residence of a tenant. At Roomlala, we support you in setting up contracts perfectly adapted to this objective without locking you into 3-year durations as a standard unfurnished lease would.

The student lease: a win-win solution

The student lease is a furnished rental contract with a duration reduced to 9 months, corresponding exactly to the academic year. It is the perfect tool for making a second home profitable if you wish to reclaim it in the summer for your own vacations. By renting your property to a student from September to May, you offer them a roof in a context of housing shortages, while legally qualifying your property as the "tenant's main residence" during that period.

This reclassification is magical from a tax perspective: it automatically exempts you from the surcharge on second homes. In addition, students are generally backed by solid guarantors (parents) or the state's Visale guarantee. This is a very reassuring tenant profile. Take the example of Martine, who owns an apartment in Montpellier (a city in a tense zone). By opting for a 9-month student lease, she saved 850 euros in housing tax increases while receiving regular rent, before enjoying her property in July and August.

The mobility lease: flexibility and tax advantages

If the 9-month duration does not suit you, the mobility lease is an extremely flexible alternative. Created for people in professional mobility situations (interns, apprentices, temporary workers, people in training), this furnished rental contract can last from 1 to 10 months and is non-renewable. Just like the student lease, it gives the accommodation the status of a main residence for the temporary tenant, thus protecting you from the brunt of the 2026 tax increase.

The great advantage of the mobility lease lies in its flexibility. You can perfectly well rent a room in your primary residence or your second home for 3 months to an engineer on assignment, then for 5 months to a substitute nurse. Although it prohibits asking for a security deposit from the tenant, this lease is systematically eligible for the Visale guarantee, which covers unpaid rent and potential damages. It is an excellent way to make your real estate profitable at your own pace.

Renting a room as a homestay: taxation and exemptions in 2026

In addition to avoiding local surcharges, renting out part of your own primary residence offers an exceptional tax niche. If you have one or more unoccupied rooms in your home (the "empty nest" syndrome after the children have left, for example), the legislation strongly encourages you to rent them out.

Extended income tax exemption

In accordance with Article 35 bis of the General Tax Code, income from renting a furnished room within your primary residence benefits from a total income tax exemption. Faced with the housing crisis, the government has wisely extended this highly incentive-based scheme until December 31, 2026. This means that the rents received will not increase your taxable base, a significant net advantage compared to a classic rental investment.

However, we draw your attention to strict points of vigilance to benefit from this exemption. Firstly, the rented room must be an integral part of your primary residence. Separate outbuildings with independent access (such as a studio set up at the bottom of the garden or a converted garage) are excluded from this scheme and fall under the standard LMNP (non-professional furnished lessor) taxation. Secondly, the room must meet decency standards, which implies a minimum surface area of 9 square meters and a window opening to the outside.

Rent ceilings to respect in 2026

For this total tax exemption to apply, the legislature requires that the requested rent remains "reasonable." The tax authorities set annual rent ceilings (excluding charges) not to be exceeded each year. For 2026, these ceilings have been re-evaluated to take inflation into account.

• In the Île-de-France region: the ceiling is set at 215 euros per square meter per year.
• In other regions (the provinces): the ceiling is 159 euros per square meter per year.

Let's take a concrete use case to fully understand. If you live in Lyon (the provinces) and you rent a 15 m2 furnished room within your apartment, the annual rent excluding charges must not exceed 2,385 euros (15 x 159), or about 198 euros per month. If you respect this ceiling, this income will be 100% tax-free. If you decide to charge more, which is perfectly legal, you will simply lose the total exemption and your income will fall under the classic micro-BIC regime, which remains advantageous thanks to its 50% flat-rate deduction.

How Roomlala supports you in this legal transition

Navigating through tax reforms, tax increases, and different types of leases can seem intimidating. At Roomlala, our mission is to simplify all these steps to allow you to host tenants with peace of mind. We provide you with a secure platform designed specifically for homestay rentals and medium-to-long-term leases.

When you post a listing on our site, you gain access to a community of thousands of students and young professionals whose profiles are verified. We provide you with contract templates updated with the latest 2026 regulations, whether for a student lease, a mobility lease, or an intergenerational cohabitation contract. You don't have to play the lawyer: everything is thought out to secure your process from A to Z.

In addition, our secure online payment system ensures that you will receive your rent on time, without having to manage follow-ups. Faced with the 2026 housing tax increase, don't let your empty rooms become a financial burden. Join the thousands of Roomlala hosts who have already made the choice of long-term rental: you will offset your costs, increase your purchasing power, and live an enriching human experience by helping someone find a place to stay.