A case study of Delhi was undertaken to understand the structure and functioning of the rental housing market in a large urban area. Delhi has a large rental housing market providing such housing to 545136 households in 1981. The private (household) sector is the dominant supplier of rental housing in the city which incorporates all areas and all housing typologies in Delhi. The dominant form of renting is partial renting of the house. Over the period 1980-88, rents have increased in all parts of Delhi for all types of housing in the private sector rental housing market (RHM). The study further examines the role of government in the provision of rental housing to general public and the impact of Rent Control Act (RCA).