2026 Swiss reference rate: What impact on your shared housing rent?

Are you renting a room or sharing an apartment in Switzerland and wondering if you are paying the right price? With inflation and the cost of living, every franc counts. On September 1, 2026, the Federal Office for Housing (FOH) published its latest data regarding the 2026 Swiss reference interest rate. At Roomlala, we know that real estate jargon, between mortgage rates and notice periods, can seem complex. That is why we are breaking down the impact of this announcement on your housing budget. Whether you are a primary tenant or a subtenant, discover how to assert your rights to potentially obtain a rent reduction by the end of the year.

Understanding the 2026 Swiss reference interest rate and its implications

The FOH announcement for Autumn 2026: maintenance at 1.25%

On September 1, 2026, the Federal Office for Housing (FOH) delivered its highly anticipated verdict for the autumn. The 2026 Swiss reference interest rate is officially maintained at 1.25%. This figure, essential in the Swiss real estate landscape, determines the legal basis upon which landlords calculate rents. Concretely, this rate remains unchanged since its last decrease a year earlier, on September 2, 2025.

Read also: Rise in rental utility costs in Switzerland (Winter 2026): Renting out a room to balance your budget, Student housing shortage in Belgium in 2026: Homestay, the supportive alternative and Youth Rental Voucher fall 2026: How to fund your shared housing in Spain

Why this stagnation? Financial experts, particularly those at UBS, point out that the average rate of mortgage claims is currently stagnating around 1.31%. However, the reference rate is only adjusted when this average rate crosses certain strict thresholds, calculated at a quarter of a percentage point. Thus, for this autumn 2026, the FOH did not have a sufficient mathematical reason to modify the 1.25% rate.

While this announcement means there is no new right to a decrease compared to the previous quarter, it does not freeze the situation for all tenants. On the contrary, it acts as a crucial reminder. At Roomlala, we often observe that many people are still unaware of the current state of the market and continue to pay rents based on obsolete rates.

It is therefore essential to check your lease agreement. If the signing date dates back several years (before 2025), there is a strong chance that your rent is still calculated based on a higher rate. In this case, the maintenance of the current rate at a historically low level is an excellent opportunity to take action and rebalance your monthly budget.

Why many tenants are still entitled to a decrease

Although the rate did not decrease this autumn, this absolutely does not mean that your rent cannot decrease. In fact, regarding the ASLOCA rent decrease request (the Swiss Tenants' Association), legal experts regularly remind us that thousands of tenants have not yet asserted their rights since the rate moved to 1.25% in 2025.

If your current lease is still based on an old mortgage rate of 1.5%, 1.75%, or more, you are entitled to demand a rent reduction. The difference between the rate stipulated in your initial contract (or at the time of the last rent modification) and the current rate of 1.25% legally justifies a downward adjustment of your monthly payment.

Let's take a concrete example. Imagine you are renting an apartment in Geneva for 2,000 CHF per month, with a lease based on a rate of 1.5%. According to the rules in force, a decrease of a quarter of a percentage point (from 1.5% to 1.25%) entitles you to a rent reduction of approximately 2.91%. This represents a saving of nearly 60 CHF per month, or more than 700 CHF per year. A significant amount for your purchasing power!

We strongly advise you to take your rental contract out of your files and check the clause relating to the reference rate. If you notice a rate higher than 1.25%, it is high time to take action. Do not wait for your landlord or your property management to do it for you, as this process is almost never proactive on their part.

What is the impact on a Swiss shared housing rent or a long-term room in Switzerland?

Swiss tenant law also applies to subtenants

It is common to think that only people who have signed a primary lease directly with a property management company or a landlord have rights. This is a misconception! Swiss tenant law is designed to protect all stakeholders, including in the context of Swiss shared housing rent or subletting.

At Roomlala, we support people daily who are renting a room in a host's home. If you are renting a long-term room in Switzerland as a subtenant, you have the right to request a rent reduction from your primary tenant, exactly in the same way the latter can do so with their landlord.

Of course, this implies that the primary tenant has themselves benefited from a rent decrease (or is entitled to one based on their own lease). The Swiss Code of Obligations prohibits the primary tenant from making an abusive profit at the expense of their subtenants. If their costs decrease thanks to the 1.25% rate, they are required to pass this decrease on proportionally to the share of rent you pay for your room.

For example, if you share a 4-room apartment in Lausanne, you rent one of the rooms, and the total rent of the apartment decreases by 100 CHF following a rate revision, your share of the rent should decrease proportionally (for example by 25 CHF or 33 CHF depending on the initial distribution). Transparent communication between roommates is the key to ensuring that everyone gets a fair deal and that the shared housing remains healthy.

Exceptions to the rule: when a decrease is not possible

Although legislation is very favorable to tenants, there are notable exceptions. Not all rental contracts are linked to the mortgage reference rate. It is therefore essential to properly classify the nature of your contract before starting any process with your landlord.

Here are the main exceptions for which the decrease linked to the reference rate does not apply:

• Indexed rent leases: If your contract stipulates that your rent evolves exclusively according to the Swiss Consumer Price Index (CPI), mortgage rate variations do not concern you.
• Step-up rent leases: In this type of contract, rent increases are fixed in advance for specific periods. During the term of the step-up, you cannot request a rent reduction.
• Subsidized housing: Rents for housing supported by the State or the cantons respond to specific calculation rules based on actual costs.

If you are not in any of these exceptional situations, the way is clear to assert your rights to the reduction. If in doubt about the nature of your lease, do not hesitate to seek advice from a local branch of ASLOCA or to check the exact terms written on your subletting contract.

How to formulate your ASLOCA rent decrease request and assert your rights?

Practical steps and deadlines to respect

As we have highlighted in our points of vigilance, the rent adjustment is never automatic. It is up to you, as a tenant or subtenant, to take the initiative. To formulate an ASLOCA rent decrease request in due form, it is recommended to proceed formally, by way of a registered letter addressed to your landlord or your primary tenant.

Timing is absolutely crucial. For your request to be valid, it must reach the landlord before the beginning of the next notice period of your lease. In Switzerland, notice periods are generally three months for the end of a quarter, or for dates set by local customs (often end of March, end of June, and end of September).

For example, if your lease provides for a possible termination for December 31 with a three-month notice, your registered letter must reach your landlord's hands no later than September 30. If you miss this deadline by a single day, the rent decrease will only be effective on the following term, i.e., three months later. You would thus lose several months of potential savings.

In your letter, you must clearly mention the current reference rate on which your lease is based, the new 2026 Swiss reference rate (1.25%), and formally request the corresponding reduction. The FOH and ASLOCA make free letter templates available on their respective websites to ensure you do not forget any mandatory legal mention.

Practical case: calculating and requesting your rent reduction

To help you see things more clearly, let's do a calculation together. We know that for a decrease in the reference rate of 0.25 points (going for example from 1.5% to 1.25%), the tenant is entitled to a rent reduction of 2.91%. If the rate goes from 1.75% to 1.25% (decrease of 0.5 points), the theoretical reduction climbs to 5.71%.

However, be careful: the landlord has the right to compensate for this decrease by invoking inflation (up to 40% of the increase in the Consumer Price Index) or a justified increase in maintenance costs since the last rent fixation. It is therefore very common that the decrease finally granted is slightly lower than the theoretical percentage.

Let's take the case of Sophie, who rents a long-term room in Switzerland in Fribourg. Her subletting lease indicates a rent of 800 CHF, based on an old rate of 1.75%. She writes to her primary tenant at the beginning of September 2026 to request a decrease. The theoretical reduction is 5.71%, i.e., about 45 CHF. The primary tenant accepts the decrease but justifies retaining 10 CHF to compensate for general inflation. Sophie still obtains a net decrease of 35 CHF per month, i.e., 420 CHF in annual savings.

If the landlord or the primary tenant refuses your request, or does not respond within 30 days, you have the possibility to seize the conciliation authority in matters of leases and rents of your canton. This process is free in Switzerland and very often allows for an amicable agreement to be found without having to go through a heavy procedure.

Shared housing and subletting in Switzerland: Roomlala's advice

At Roomlala, our mission is to facilitate the connection between hosts and tenants in a secure, human, and transparent framework. The question of the right price is central to guaranteeing harmonious cohabitation over the long term. The regular announcements linked to the 2026 Swiss reference interest rate are an excellent opportunity to reset the finances of your shared housing and to ensure that everyone pays the fair price.

We always encourage primary tenants who sublet a room on our platform to be proactive and honest. If you obtain a rent decrease from your property management, inform your subtenants spontaneously and adjust their rent. This gesture of good faith builds trust, retains your roommates, and guarantees a serene atmosphere within your home.

For tenants and subtenants, we remind you of the capital importance of keeping all your contractual documents. A written, clear, and precise lease is your best asset to assert your rights. When signing a contract for a long-term room in Switzerland, systematically ensure that the mortgage reference rate in force at the date of the signature appears there explicitly.

Finally, do not forget that real estate legislation is evolving. Stay informed by regularly consulting the communications of the FOH and the advice of tenant defense associations. On Roomlala, we ensure that our community has the best information to rent and host with complete peace of mind. Do not hesitate to browse our other articles to know everything about your rights, your duties, and our tips for a successful shared housing life!