The rent index provides information on the local comparative rent for different categories of housing and helps to make the rent structure in non-price-controlled housing stock transparent, avoid disputes between parties to rental agreements, reduce the costs of obtaining information on comparative rents in individual cases and make it easier for the courts to decide in disputes.
The Rent Index Reform Act (MsRG), which came into force in July 2022, obliges municipalities with more than 50,000 inhabitants to draw up a rent index. The parliament of the city of Bad Homburg v. d. Höhe therefore decided on July 22, 2022 that a qualified rent index would be created for the city of Bad Homburg by the end of December 2023. The municipalities were free to decide whether to create a simple or a qualified rent index. Bad Homburg opted for a qualified rent index. This means that the rent index was drawn up in accordance with recognized scientific principles.