France's 2027 Budget Bill: What It Means for Tenants

The French budget bill for 2027 was tabled in the National Assembly on 1 October 2026. Several of its measures directly affect tenants, starting with housing benefits. Nothing has been voted yet: here is what is proposed and what is worth planning for.

A bill, not yet a law

Every autumn, the government presents the following year's budget in a finance bill (projet de loi de finances). The 2027 bill has been debated by MPs since mid-October and will then go to the Senate. Each measure can be amended, removed or added to during the debates, and the parliamentary context makes the outcome particularly uncertain this year.

The measures below are those of the bill as tabled by the government. We will update this article once the budget is finally adopted.

Housing benefit (APL): no uprating in 2027

This is the measure that affects the most tenants. Each year on 1 October, the parameters used to calculate personal housing benefits (APL, ALF, ALS) are uprated in line with the rent reference index (IRL). The bill provides, as an exceptional measure, not to apply this uprating in October 2027.

In practice, this is not a cut in benefits but a freeze: the rent ceilings used in the calculation would stay at the same level, while rents themselves continue to be reviewed every year in line with the IRL (see our article on the Q3 2026 IRL). For a recipient whose rent rises, the share left to pay would therefore increase slightly. The government expects savings of around €101 million in 2027, and the bill provides that a decree could reverse the freeze.

Students: choosing between APL and their parents' tax benefit

Today, a student's housing benefit is calculated without taking their parents' income into account, while the parents may also claim them as a dependant for tax purposes or deduct maintenance payments. Under the bill, from 1 September 2027, households with income above a certain threshold would have to choose between their child's APL and that tax benefit.

For the families concerned, it will be worth running the numbers before the 2027 academic year: depending on income and the rent of the student flat, one option or the other will be more favourable.

Furnished lettings: less favourable tax treatment for landlords

The bill would limit, from 2027, the tax advantage of landlords letting furnished property under the LMNP regime: deductible depreciation would be capped at 2.5% of the property's value and €7,000 per year per tax household, with a lower cap for tourist lets (1.5% and €5,000). Student and senior residences would be excluded.

The stated aim is to steer investment towards long-term letting. The effect on the supply of furnished flats in Paris cannot be measured at this stage. For tenants, it changes nothing in the rules of an existing lease.

What the budget does not change

• Your rights as a tenant: lease length, notice period, deposit and rent review rules come under the law of 6 July 1989, not the budget.
• Rent control in Paris: its future does not depend on the finance bill. See our article on rent control after 24 November 2026.
• The new standard lease: the template amended on 1 October 2026 applies regardless of the budget, as explained in our article on the new French lease.

What we suggest planning for

• APL recipients: budget for stable rather than rising support in 2027-2028, especially if your rent is due for review.
• Parents of students: keep the September 2027 deadline in mind if you are looking for a flat for the following academic year.
• Prospective tenants: think in terms of total cost (rent, actual charges, benefits) rather than rent alone, and check the latest service charge adjustment.

Frequently asked questions

Will my APL go down in 2027?

The bill does not cut benefits; it freezes the calculation parameters on 1 October 2027. Your benefit may still change for other reasons: income, rent or family situation.

When will we know what has been adopted?

The budget should normally be voted before the end of the year. Measures can change until the final vote, and some then require an implementing decree.

Does the student measure apply this year?

No. In the bill as tabled, it would only apply from 1 September 2027.

Conclusion

The 2027 budget does not overturn tenants' rights, but it could weigh on the housing budget of benefit recipients and some students' families. At APPARTE, we help our clients build a realistic housing budget before the search starts, so they target the homes that truly suit them. Looking for a home in Paris or Île-de-France? Book an appointment with APPARTE.

This article provides general information that is up to date at the time of publication, based on the budget bill tabled on 1 October 2026. For a specific situation, have your rights checked by a professional (ADIL, CAF, lawyer or accountant).