Students and faculty residing in University-affiliated apartments will be paying more in rent after this summer if the annual rent increase proposed last week by Harvard Planning and Real Estate (HPRE) is approved.

Rents will be raised 4 percent for students and faculty currently living in Harvard-affiliated apartments and 7 precent for new residents signing leases beginning in July if HPRE’s proposal is approved. The Faculty Advisory Committee on Affiliated Housing must sign off on the increases before they take effect.

In order to set its rent prices, HPRE analyzes 4,200 non-Harvard apartment around Cambridge and Somerville to determine the “prevailing market rate.” This year, HPRE determined that a 17 percent increase would be in line with the area real estate market, but the advisory committee cut the increase to 7 percent because of concerns over the slowing economy.

HPRE frequently has extended waiting-lists for its apartments because they are close to campus and often provide laundry facilities, daycare centers and other amenities to graduate students and faculty. Last year’s rents ranged from $926 for a studio apartment to $4,128 for a residence with five bedrooms.

Even with the proposed increases, some graduate students said they think that HPRE-run apartments remain a good deal.

“I have an investment in wanting to stay,” said Graduate School of Design student Todd Gilens, whose Peabody Terrace studio apartment rose from $840 to $950 last year.

Harvard currently owns and operates 18 complexes containing about 2,300 apartments that are available for rent to University affiliates.

HPRE purchased an additional 120-unit Cambridgeport facility in December. The complex was formerly owned by the Polaroid Company, and is expected to be available for Harvard-affiliated residential use.

University spokesperson Joe Wrinn said he was unsure when the complex would be ready for occupancy.