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Carpet Depreciation Calculator: What Can They Charge?

Landlords cannot charge full replacement cost for old carpet. Learn how to calculate the depreciated value using the HUD 5-year rule.

8 min readUpdated January 2026

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The HUD 5-Year Rule for Carpet

According to HUD Handbook 4350.1, the standard useful life of rental grade carpet is 5 years.

This means a landlord must "depreciate" the value of the carpet over 5 years. If the carpet needs to be replaced, you only owe for the *remaining* useful life, not the cost of a brand new carpet.

  • The Math:
  • Year 1: Carpet loses 20% value
  • Year 2: Carpet loses 40% value
  • Year 3: Carpet loses 60% value
  • Year 4: Carpet loses 80% value
  • Year 5+: Carpet is worth $0

If you move out after living there for 5 years, or if the carpet was already old when you moved in, the landlord cannot charge you for replacement, even if it is stained or damaged.

How to Calculate Your Charge

Formula: (Replacement Cost / 5 Years) x Years of Life Remaining = Your Charge

  • Example:
  • You damaged the carpet in the bedroom.
  • The landlord says replacing it costs $1,000.
  • The carpet was installed 3 years ago (you lived there 2 years, it was 1 year old when you moved in).
  • Useful Life Remaining: 5 - 3 = 2 years.

Calculation: ($1,000 / 5) x 2 = $400

You owe $400, not $1,000. If the landlord keeps the full $1,000, they are illegally charging you for "betterment" (improving their property at your expense).

Stains: Cleaning vs. Replacing

Landlords often try to replace an entire carpet for a few small stains. This is generally not allowed if the stains can be removed by professional cleaning.

Rule of Mitigation: Landlords have a "duty to mitigate" damages. They must try the cheapest effective repair (cleaning/patching) before choosing the most expensive option (replacement).

Frequently Asked Questions

Can the landlord charge for new carpet if I lived there 10 years?

No. After 10 years, the carpet has exceeded its useful life (5 years) twice over. Its book value is $0. Even if you destroyed it, they cannot charge you for replacement because they lost an asset with zero value.

What if the lease says I must pay for carpet replacement?

A lease clause cannot override state law or fundamental principles of unjust enrichment. You cannot be forced to buy your landlord a new asset to replace an old, depreciated one. Such clauses are often unenforceable in court.

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Disclaimer: This guide provides general information about consumer protection rights and is intended for educational purposes only. It is not legal advice. Laws vary by state and individual circumstances differ. Consult a licensed attorney for advice specific to your situation.

Last updated: 2026-01-24.