Abstract-Decentralized dynamic spectrum allocation (DSA) that exploit adaptive antenna array interference mitigation (IM) diversity at the receiver, is studied for interference-limited environments with high level of frequency reuse. The system consists of base stations (BSs) that can optimize uplink frequency allocation to their user equipments (UEs) to minimize impact of interference on the useful signal, assuming no control over band allocation of other BSs sharing the same bands. To this end, "good neighbor" (GN) rules allow effective trade off between the equilibrium and transient decentralized DSA behavior if the performance targets are adequate to the interference scenario. In this paper, we extend the GN rules by including a spectrum occupation control that allows adaptive selection of the performance targets corresponding to the potentially "interference free" DSA; define the semi-analytic absorbing Markov chain model for the GN DSA with occupation control and study the convergence properties including effects of possible breaks of the GN rules; and for higher-dimension networks, develop the simplified search GN algorithms with occupation and power control (PC) and demonstrate their efficiency by means of simulations in the scenario with unlimited requested network occupation.