Swiss reference interest rate 2026: What is the impact on the rent for your shared housing?

Are you renting a room or sharing an apartment in Switzerland and wondering if you are paying a fair price? With inflation and the cost of living, every franc counts. On 1 September 2026, the Federal Office for Housing (FOH) published its latest data regarding the 2026 Swiss reference interest rate. At Roomlala, we know that property jargon, from mortgage rates to termination notice periods, can seem complex. That is why we are decoding the impact of this announcement on your housing budget for you. Whether you are a main tenant or a sub-tenant, 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 autumn 2026 announcement: holding steady at 1.25%

On 1 September 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, which is essential in the Swiss property landscape, determines the legal basis upon which landlords calculate rents. In practical terms, this rate has remained unchanged since its last decrease a year earlier, on 2 September 2025.

Read also: Rising rental costs in Switzerland (Winter 2026): Renting out a room to balance your budget, Shortage of student accommodation in Belgium in 2026: Homestay, the supportive alternative and Youth Rental Voucher autumn 2026: How to finance your shared housing in Spain

Why this stagnation? Financial experts, particularly those at UBS, point out that the average mortgage debt rate is currently stagnating around 1.31%. However, the reference interest 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 sufficient mathematical grounds to change 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 find that many people are still unaware of the current market state and continue to pay rents based on obsolete rates.

It is therefore essential to check your lease agreement. If the signing date was several years ago (before 2025), there is a strong possibility that your rent is still calculated at 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 reduction

Although the rate has not dropped this autumn, this absolutely does not mean that your rent cannot decrease. In fact, regarding the ASLOCA rent reduction (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 gap between the rate stipulated in your initial contract (or at the time of the last rent adjustment) and the current 1.25% rate legally justifies a downward adjustment of your monthly payment.

Let us look at a concrete example. Imagine that you rent 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 drop 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 not insignificant 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 interest rate. If you note a rate higher than 1.25%, it is high time to take action. Do not wait for your landlord or your property management agency 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 sub-tenants

It is common to think that only people who have signed a main lease directly with a property management agency 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 sub-letting.

At Roomlala, we support people who rent a homestay daily. If you rent a long-term room in Switzerland as a sub-tenant, you have the right to request a rent reduction from your main tenant, in exactly the same way as the latter can do with their landlord.

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

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

Exceptions to the rule: when a reduction is not possible

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

Here are the main exceptions for which the reduction linked to the reference interest 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 fluctuations do not concern you.
• Step-up rent leases: In this type of contract, rent increases are set in advance for specific periods. During the term of the staggered increases, you cannot request a rent reduction.
• Subsidised housing: Rents for housing subsidised by the State or cantons follow 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 a reduction. In case of 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 sub-letting contract.

How to formulate your ASLOCA rent reduction 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 sub-tenant, to take the initiative. To formulate a ASLOCA rent reduction request in due form, it is recommended to proceed formally, by means of a registered letter addressed to your landlord or your main tenant.

Timing is absolutely crucial. For your request to be valid, it must reach the landlord before the start of the next termination notice period of your lease. In Switzerland, notice periods are generally three months for the end of a quarter, or for deadlines fixed 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 31 December with a three-month notice period, your registered letter must reach your landlord's hands no later than 30 September. If you miss this deadline by a single day, the rent reduction will only be effective at the next deadline, i.e. three months later. You would thus lose several months of potential savings.

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

Practical case: calculating and requesting your rent reduction

To help you see things more clearly, let us do a calculation together. We know that for a decrease in the reference interest 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% (a drop of 0.5 points), the theoretical reduction climbs to 5.71%.

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

Let us take the case of Sophie, who rents a long-term room in Switzerland in Fribourg. Her sub-letting lease indicates a rent of 800 CHF, based on an old rate of 1.75%. She writes to her main tenant at the beginning of September 2026 to request a reduction. The theoretical reduction is 5.71%, i.e. approximately 45 CHF. The main tenant accepts the reduction but justifies withholding 10 CHF to offset general inflation. Sophie still obtains a net reduction of 35 CHF per month, or 420 CHF in annual savings.

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

Shared housing and sub-letting 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 issue of the fair price is central to ensuring harmonious cohabitation over the long term. The regular announcements related 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 right price.

We always encourage main tenants who sub-let a room on our platform to be proactive and honest. If you obtain a rent reduction from your property management agency, inform your sub-tenants spontaneously and adjust their rent. This good-faith approach strengthens trust, builds loyalty among your flatmates, and ensures a serene atmosphere within your home.

For tenants and sub-tenants, we remind you of the vital 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, always ensure that the mortgage reference interest rate in force on the date of signing appears explicitly.

Finally, do not forget that property legislation is evolving. Stay informed by regularly consulting the FOH's communications and the advice of tenant defence associations. At 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 learn everything about your rights, your duties, and our tips for a successful life in shared housing!