This varies by state and sometimes by city. California, for example, has a limit of 10% or 5% + change in COL, whichever is lower, per 12 months. This only applies to renewals. And there's a carve-out for single family home rentals.

What you're describing is often called "Rent Control" and it is something liberal politicians from New York to California have crusaded against for decades, on the grounds that it prevented new residential housing space from being built.

Incidentally, there is no recognized correlation between rent control as a policy and diminished housing starts.

If you refuse to renew, then you'll be put into the month-to-month. Which is a encouragement to just leave.

That clause is also on your lease when you initially sign. The cost of month to month is often not listed, but says something like "market rates". It's always unfavorable.