Lease glossary

Occupancy limit

An occupancy limit is the maximum number of people allowed to live in a rental, set by the lease, a local housing code, or both. Limits must be reasonable under fair-housing law, and the common federal guideline is two people per bedroom, adjusted for the unit and the household.

Also called occupancy standard

Example

A two-bedroom, 950-square-foot apartment with a lease limit of 4 occupants fits the two-per-bedroom guideline. A family of four expecting a baby in March 2027 may still be able to stay on as five: the guideline weighs the children’s ages, the size of the bedrooms and the unit, and local code, and a stricter rule aimed at families with children can be familial-status discrimination.

In a lease it looks like…

The premises shall be occupied only by the persons listed below, not to exceed four persons. A guest staying more than 14 consecutive days, or more than 30 days in a year, requires Landlord’s written consent.

Good to know

Local housing codes often set the real limit, by square feet per person, and some are more generous than the federal guideline. A landlord who sets a lower limit than the code needs a legitimate reason, such as the septic capacity of a small house.

Plain English, not legal advice. Last reviewed September 29, 2026.