How much should I raise rent?

[Mark Hayes]

I own a 3bd/2ba SFH that is renting for $975 which is well below market rate. When we first start renting it out in 2017, this was the going rate, but since then the market rate has increased to about $1,200, possibly even higher. I have good tenants who have been living there for 2 years. I've never had any problems with them and they pay rent on time. Should I increase it all the way to market rate, or would it be best to do a phased approach? Say, $1,100 when their lease is up, and then $1,200 the next time around? I'd prefer not to lose the tenants but I also want to make sure the property continues have an acceptable level of return.