Category: Uncategorized

Oregon’s Manufactured Home Rent Cap: A Separate System Most Owners Miss

In 2025, the Oregon legislature quietly passed one of the most significant changes to the state’s rent control framework since SB 608 itself. House Bill 3054 created a separate, stricter rent increase cap specifically for manufactured home parks with 30 or more spaces. While standard residential properties and smaller parks follow the SB 608 formula of 7% + CPI (9.5% for 2026), larger manufactured home parks are capped at just 6% per year.

This distinction is critical for park owners and managers, and it’s one that many in the industry have not yet absorbed. Applying the wrong cap — using the standard 9.5% when the 6% manufactured housing cap applies — could expose park owners to tenant challenges, forced rent rollbacks, and legal liability.

Why Manufactured Housing Gets a Separate, Stricter Cap

Manufactured home parks occupy a unique position in the housing market. Unlike traditional apartments, where the landlord owns both the building and the land, manufactured home parks typically involve a split-ownership model: the resident owns the home (a manufactured structure), while the park owner owns the land beneath it. The resident pays a monthly space rent for the right to keep their home on the park’s land.

This arrangement creates a fundamental power imbalance. When rent increases on a traditional apartment, the tenant can move to another apartment — an inconvenient but financially manageable transition. When space rent increases in a manufactured home park, the resident faces a dramatically different calculation. Moving a manufactured home costs $5,000 to $20,000 or more, requires finding a new park with an available space (increasingly rare), and may involve zoning and permitting hurdles. Many older manufactured homes cannot be moved at all without being destroyed.

The result is that manufactured home residents are effectively captive tenants. They own their home but cannot practically leave, giving the park owner extraordinary leverage over rent increases. The legislature recognized this vulnerability and enacted HB 3054 to provide additional protection.

The 30-Space Threshold: Which Cap Applies?

HB 3054 divides manufactured home parks into two categories based on size:

Park Size	Annual Rent Cap	Governing Law	Varies with CPI?
30 or more spaces	6%	HB 3054 (2025)	No — flat 6% every year
30 or fewer spaces	9.5% (2026)	SB 608 / SB 611	Yes — 7% + CPI, max 10%
Standard residential (not MH)	9.5% (2026)	SB 608 / SB 611	Yes — 7% + CPI, max 10%

How to Determine Your Space Count

The space count for determining which cap applies is based on the total number of spaces in the park, not the number currently occupied. If your park has 35 platted spaces but only 28 are currently occupied, you still fall under the 30+ space category and the 6% cap applies. The space count is determined by:

• The number of spaces approved by the local planning/zoning authority
• The number of spaces shown on the park’s approved site plan
• The number of spaces in the park’s business license or registration

If your park is near the 30-space boundary, document the official space count carefully. A park with exactly 30 spaces falls into the “30 or fewer” category and follows the standard formula. A park with 31 spaces falls into the “30 or more” category and is subject to the 6% cap.

What About Mixed-Use Parks?

Some manufactured home parks include a mix of resident-owned homes (where the resident owns the manufactured home and rents the space) and park-owned homes (where the park owns the manufactured home and rents it to the tenant). The 30-space threshold typically counts all residential spaces, regardless of ownership structure. However, the specific cap that applies to a given tenancy may depend on whether the tenant is renting space only or renting a park-owned home. Consult with a qualified Oregon attorney if your park has a mixed-ownership structure.

The 6% Cap in Practice: What It Means for Park Owners

The flat 6% cap for larger parks is notably different from the standard SB 608 formula in several ways:

It Does Not Vary with CPI

The standard formula (7% + CPI) produces a different cap each year depending on inflation. In 2026, the CPI is 2.5%, producing a 9.5% cap. In a high-inflation year, the formula could produce up to 10% (the hard cap). The manufactured housing 6% cap is fixed — it’s 6% every year regardless of inflation. This provides more predictability for both park owners and residents, but it also means that in high-inflation years, park owners absorb the real cost of inflation above 6%.

The Gap Between Standard and Manufactured Housing Caps

For 2026, the gap is significant: 9.5% for standard residential versus 6% for manufactured housing (30+ spaces). On a $600/month space rent (typical for Oregon manufactured home parks), this translates to:

Standard cap (9.5%): $600 × 0.095 = $57/month increase (new rent: $657)
MH 30+ cap (6%): $600 × 0.06 = $36/month increase (new rent: $636)
Difference: $21/month per space ($252/year)

For a 50-space park, this adds up to $12,600 per year in foregone revenue compared to what the standard cap would allow. Over five years, the cumulative impact is substantial, particularly when accounting for compounding.

Compounding Over Time

The flat 6% cap creates a growing gap over time compared to the standard formula. Consider a space starting at $600/month under each cap regime:

Year	Standard Cap (assume 9.5%)	MH 30+ Cap (6%)	Difference
2026	$657	$636	$21/mo
2027	$719	$674	$45/mo
2028	$787	$714	$73/mo
2029	$862	$757	$105/mo
2030	$944	$802	$142/mo

Note: The standard cap varies annually with CPI. This table assumes 9.5% for illustration.

Other Rules That Still Apply

The separate 6% cap does not exempt manufactured home parks from Oregon’s other rental housing regulations. All of the following still apply:

• One increase per 12 months — park owners can only raise space rent once per 12-month period
• 90-day written notice — rent increases require 90 days’ written notice
• Just cause eviction after year one — no-cause termination is banned after the first year of tenancy under ORS 90.427
• 15-year new construction exemption — parks less than 15 years old from their first certificate of occupancy are exempt from the cap (but this is rare for manufactured home parks, which tend to be older)
• Portland-specific rules — if the park is in Portland, relocation assistance and registration requirements apply
• Vacancy decontrol — when a space turns over, the park owner may set any initial rent for the next tenancy

Manufactured Home Park Specific Regulations

Oregon also has manufactured dwelling park-specific regulations under ORS Chapter 90 that go beyond the rent cap:

• Written rental agreement required — park tenancies must have a written rental agreement that includes specific disclosures
• Park rules must be provided in writing before tenancy begins
• Park sale notification — residents must be notified when the park is listed for sale, and they have certain rights related to purchase opportunities
• Closure notification — if a park is closing, residents must receive extended notice and may be entitled to relocation assistance
• Tree maintenance — park owners are generally responsible for maintaining trees in common areas

The Investment Impact: How HB 3054 Affects Park Values

The 6% cap has direct implications for manufactured home park valuations, which are typically based on net operating income (NOI) capitalized at a market rate. A lower revenue growth ceiling directly reduces projected NOI growth, which in turn affects valuation multiples.

For parks valued on a cap rate basis, the 6% rent growth ceiling means:

• Lower projected revenue growth compared to standard residential properties
• Higher risk of expense inflation exceeding revenue growth in high-CPI years
• Reduced ability to implement value-add strategies that rely on significant rent increases after capital improvements
• Potential downward pressure on acquisition prices as investors adjust their underwriting

However, manufactured home parks retain several advantages that partially offset the stricter cap: extremely low turnover (residents rarely move), minimal capital expenditure requirements (residents own the homes), low management intensity per space, and strong demand driven by housing affordability pressures. Parks with below-market rents still have meaningful upside, even at 6% annual increases, if the gap to market rent is large enough.

How to Determine Which Cap Applies to Your Property

Use the following decision tree:

1. Is your property a manufactured home park? If no → standard 9.5% cap (SB 608/611).
2. Does your park have 30 or more total spaces? If no → standard 9.5% cap.
3. If yes to both: 6% cap (HB 3054).
4. Is the property less than 15 years old from its first CoO? If yes → exempt from the cap entirely (rare for MH parks but possible).

You can also use the Oregon Rent Cap Calculator, which includes manufactured housing inputs and automatically applies the correct cap based on your property type and space count.

Legislative Context and Future Outlook

HB 3054 reflects a broader national trend toward protecting manufactured home residents from aggressive rent increases. Similar measures have been enacted or proposed in several other states:

• Colorado passed HB 22-1287, creating manufactured home park rent protections and dispute resolution processes
• California’s MRL (Mobilehome Residency Law) provides extensive protections for mobilehome park residents, though it does not impose a specific rent cap
• Washington has proposed manufactured housing protections alongside its broader HB 1217 rent cap
• Vermont and Maine have enacted manufactured housing protections that include rent stabilization provisions

Oregon’s HB 3054 is notable for its simplicity: a flat 6% cap for larger parks, with smaller parks following the standard formula. This approach avoids the complexity of separate CPI calculations or dispute resolution mechanisms. It also sets a precedent that manufactured housing may warrant stricter protections than standard residential properties, which could influence future legislation in Oregon and other states.

Frequently Asked Questions

What is the rent cap for Oregon manufactured home parks?

Parks with 30 or more spaces are capped at 6% annual increases under HB 3054 (2025). Parks with 30 or fewer spaces follow the standard SB 608 formula of 7% + CPI, which is 9.5% for 2026. The 6% cap is flat and does not vary with inflation.

How do I know if the 6% cap applies to my park?

Count the total number of spaces in your park (not just occupied spaces). If the total is 30 or more, the 6% cap applies. If 30 or fewer, the standard 9.5% cap applies. The count is based on your park’s approved site plan or zoning authorization, not current occupancy.

Does the 6% cap apply every year?

Yes. Unlike the standard formula which varies with CPI, the manufactured housing cap for 30+ space parks is a flat 6% every year. In high-inflation years, this may be significantly below the standard formula result. In low-inflation years, the gap narrows.

Can I raise space rent more than 6% if I invest in improvements?

Under HB 3054, the 6% cap applies regardless of capital investments. There is no provision for pass-through of capital improvement costs above the 6% cap. Park owners must factor this cap into their investment decisions when planning major infrastructure upgrades.

Does the 15-year exemption apply to manufactured home parks?

Technically yes, but it is rare in practice. Most manufactured home parks are far older than 15 years. A newly developed park would be exempt from the cap for 15 years from its first certificate of occupancy, after which the 6% cap (if 30+ spaces) or standard formula (if ≤30 spaces) would apply.

Do Portland’s relocation rules apply to manufactured home parks?

Yes, if the park is located within Portland city limits. Portland’s relocation assistance ($2,900–$4,500 by unit size) applies to no-cause terminations and rent increases of 10% or more. Since the 6% cap makes increases of 10%+ impossible for larger parks, the relocation trigger is primarily relevant for no-cause terminations during the first year and for smaller parks or exempt properties where increases above 10% are possible.

Track Your Manufactured Housing Cap Automatically

Managing manufactured home park compliance requires tracking a different cap than standard residential properties, plus all the same notice requirements, just cause rules, and local ordinances. LeaseBase automatically applies the correct cap based on your property type and park size, and alerts you to all applicable deadlines and requirements.

Related reading

• Oregon Rent Cap Calculator
• Oregon Rent Increase Limits 2026: 9.5% Cap Explained
• Portland Relocation Assistance Guide
• Oregon’s 15-Year Exemption Guide
• No-Cause Evictions in Oregon
• Washington Rent Cap Calculator

← Oregon Compliance Hub

Oregon’s No-Cause Eviction Rules: Before and After Year One

Oregon’s approach to no-cause evictions is a two-phase system created by SB 608 (2019). During the first year of a tenancy, landlords retain the ability to terminate without providing a reason, subject to notice requirements. After the first year, no-cause terminations are banned entirely, and the landlord must cite one of several qualifying reasons to end the tenancy. This framework, codified in ORS 90.427, fundamentally changed the landlord-tenant relationship in Oregon and remains one of the most consequential tenant protection measures in the state.

First Year of Tenancy: No-Cause Still Allowed

During the first year of a tenancy, Oregon landlords may issue a no-cause termination notice. The required notice period depends on location:

Location	No-Cause Notice (First Year)	Key Detail
Most of Oregon	30 days	Standard statewide minimum
Portland	90 days	Local ordinance overrides state minimum
Milwaukie	90 days	Local ordinance
Bend	90 days	Local ordinance

The first-year exception exists because the legislature recognized that landlords need some ability to end tenancies that are not working out before committing to long-term protections. A tenant who is disruptive, incompatible with neighbors, or otherwise problematic — but whose behavior doesn’t rise to the level of a lease violation — can be given notice during this trial period.

However, even during the first year, the termination cannot be retaliatory. Oregon’s anti-retaliation statute (ORS 90.385) prohibits landlords from terminating a tenancy in response to a tenant exercising their legal rights, such as requesting repairs, filing a housing complaint, or joining a tenant organization. A no-cause termination issued within six months of a tenant’s exercise of legal rights is presumed to be retaliatory, shifting the burden to the landlord to prove otherwise.

Portland’s First-Year Distinction

Portland’s 90-day first-year notice requirement is significant because it transforms what would be a relatively quick process into a months-long timeline. A Portland landlord who wants to issue a no-cause termination to a problematic tenant who moved in two months ago must still wait 90 days from the date of notice — meaning the tenant could occupy the unit for nearly five months before the termination takes effect.

Additionally, Portland requires relocation assistance for no-cause terminations at any point during the tenancy, including during the first year. The amounts range from $2,900 for a studio to $4,500 for a 3+ bedroom unit. This makes first-year no-cause terminations in Portland expensive — often more expensive than working through the lease term and not renewing.

After the First Year: No-Cause Evictions Are Banned

Once a tenant has occupied the unit for more than one year, no-cause terminations are banned entirely throughout Oregon. The landlord must cite a qualifying landlord reason to end the tenancy. This is the most significant change introduced by SB 608 and represents a fundamental shift in Oregon landlord-tenant law.

Before SB 608, Oregon landlords could terminate any month-to-month tenancy with a 30-day or 60-day no-cause notice, regardless of how long the tenant had lived there. This allowed landlords to reset rents to market rate by terminating the tenancy and re-renting the unit at a higher price. SB 608 closed this loophole by requiring qualifying reasons for termination after year one, preventing landlords from using eviction as a rent-setting mechanism.

Qualifying Landlord Reasons for Termination After Year One

After the first year, a landlord may only terminate a tenancy for one of the following qualifying reasons under ORS 90.427:

At-Fault Reasons (Tenant Did Something Wrong)

• Nonpayment of rent — after proper pay-or-vacate notice
• Material lease violation — after written notice to cure (typically 14 days for curable violations, 24 hours for certain serious violations)
• Substantial damage to the premises beyond normal wear and tear
• Illegal activity on the premises, including drug manufacturing or distribution
• Repeated violations — three or more written warnings within 12 months for the same or similar violations
• Criminal act that threatens health or safety of other residents or the landlord
• Refusal to sign a new rental agreement that is substantially similar to the current one

No-Fault Reasons (Not the Tenant’s Fault — Relocation Required)

• Owner move-in — the landlord or an immediate family member intends to occupy the unit as their primary residence
• Demolition — the landlord intends to demolish the unit (requires permits)
• Major renovation — renovations that cannot be completed with the tenant in place and require the unit to be vacated (requires permits)
• Conversion — the landlord intends to convert the unit to a non-residential use
• Sale of the property — under certain conditions, where the buyer intends to occupy the unit

Notice and Relocation Requirements

For no-fault qualifying reasons, the landlord must provide:

• 90 days’ written notice specifying the qualifying reason
• One month’s rent as relocation assistance — unless the landlord owns four or fewer residential dwelling units

The relocation assistance must be paid at the time the notice is served or no later than the date the tenancy terminates, depending on the specific reason. In Portland, the Portland-specific relocation amounts ($2,900–$4,500 by unit size) apply in addition to the statewide one month’s rent — potentially creating a dual relocation obligation.

The Four-Unit Exception

Oregon’s statewide relocation assistance requirement includes an exception for landlords who own four or fewer residential dwelling units. These landlords must still provide 90 days’ notice and cite a qualifying reason, but they are not required to pay the one month’s rent relocation assistance.

This exception was designed to protect small, individual landlords from the financial burden of relocation payments. A landlord who owns a single rental property — perhaps a family home they’re renting out while living elsewhere — is not subject to the same relocation obligation as a large portfolio owner.

However, this exception does not override Portland’s local relocation requirement. Even a landlord with four or fewer units who issues a no-cause termination (during the first year) or a qualifying-reason termination in Portland must still pay the Portland relocation amounts. The four-unit exception only applies to the statewide relocation under ORS 90.427.

How Oregon Compares to Washington and California

The three West Coast states take different approaches to just cause eviction, particularly regarding when protections begin and what triggers relocation:

Feature	Oregon (ORS 90.427)	Washington (RCW 59.18.650)	California (AB 1482)
Just cause kicks in	After first year	From day one	After 12 months
First-year no-cause	30 days (90 in PDX/Milwaukie/Bend)	Not allowed	Allowed (30 days)
Qualifying reasons	Multiple (see above)	17 enumerated causes	At-fault and no-fault categories
No-fault relocation	1 month’s rent (if >4 units)	Varies by city	1 month’s rent or waive last month
Wrongful eviction penalty	Damages + attorney fees	Greater of damages or 3x rent + fees	Damages + potential punitive
Notice for no-fault	90 days	Varies (90–180 days)	60 days

The most striking difference is Washington’s approach: just cause eviction applies from day one of the tenancy, with no first-year exception. This is the most tenant-protective approach among the three states. Oregon occupies a middle ground with its one-year grace period. California’s AB 1482 requires 12 months of tenancy before just cause protections apply, similar to Oregon but using a 12-month rather than a one-year threshold.

Penalties for Wrongful Eviction

Landlords who terminate a tenancy without a qualifying reason (or who fabricate a qualifying reason) face serious legal consequences. A tenant who prevails in a wrongful eviction action is entitled to:

• Actual damages — including moving costs, temporary housing costs, and the difference between the old and new rent
• Reasonable attorney fees and court costs
• Potential statutory damages depending on the circumstances

Oregon courts have interpreted wrongful eviction broadly. If a landlord claims owner move-in as the reason for termination but then re-rents the unit within a reasonable period, the tenant can bring an action for wrongful eviction. If the landlord claims major renovation but fails to obtain permits or complete substantial work, the same risk applies.

Additionally, tenants displaced by wrongful eviction may file complaints with the Oregon Bureau of Labor and Industries, which can investigate and impose administrative penalties. The combination of civil liability, attorney fee exposure, and regulatory oversight creates strong deterrents against pretextual evictions.

Practical Compliance: What Landlords Should Do

1. Track tenancy start dates. Know exactly when each tenancy passes the one-year threshold. After that date, your termination options are limited to qualifying reasons only.
2. Document qualifying reasons thoroughly. If you need to terminate for a qualifying reason after year one, document everything: permits for renovation, evidence of owner move-in plans, records of lease violations, etc.
3. Serve proper notice. No-fault terminations require 90 days’ written notice specifying the qualifying reason. Use the statutory language required by ORS 90.427.
4. Pay relocation assistance on time. For no-fault terminations (if you own more than four units), provide one month’s rent as relocation. In Portland, add the city-specific amounts.
5. Don’t use no-cause as a rent-setting tool. Even during the first year, no-cause terminations in Portland require 90 days’ notice and $2,900–$4,500 in relocation. The economics rarely favor this approach over simply waiting for natural lease turnover.
6. Be aware of anti-retaliation protections. Never issue a no-cause termination shortly after a tenant exercises their legal rights. The timing creates a presumption of retaliation that you must overcome.
7. Consult an attorney for complex situations. Just cause eviction law is nuanced. An hour of legal consultation before serving a termination notice is far less expensive than defending a wrongful eviction lawsuit.

The Retaliatory Eviction Trap

One of the most common legal pitfalls for Oregon landlords is the retaliatory eviction claim. Oregon law presumes that a termination is retaliatory if it occurs within six months of a tenant:

• Complaining to a government agency about habitability issues
• Requesting repairs or maintenance
• Filing a fair housing complaint
• Joining or organizing a tenant association
• Testifying in a legal proceeding related to the rental

The presumption means the landlord has the burden of proving the termination was for a legitimate reason, not in retaliation. During the first year, when no-cause termination is allowed, this presumption is particularly dangerous because the landlord doesn’t need to state a reason — which means a tenant can argue that the real reason was retaliation, and the landlord cannot point to a documented qualifying reason to rebut the claim.

The best protection against retaliatory eviction claims is thorough documentation. Maintain written records of all tenant communications, repair requests, complaints, and your responses. If you issue a no-cause termination during the first year, ensure it is not within six months of any protected tenant activity. If it is, be prepared to demonstrate a legitimate, non-retaliatory reason with documentary evidence.

Frequently Asked Questions

Can I evict a tenant without cause in Oregon?

Only during the first year of the tenancy. After the first year, no-cause evictions are banned statewide under ORS 90.427. You must cite a qualifying reason such as nonpayment, material lease violation, owner move-in, or major renovation. During the first year, you can issue a no-cause termination with 30 days’ notice (90 days in Portland, Milwaukie, and Bend).

What is the notice period for a no-cause termination?

During the first year: 30 days statewide, 90 days in Portland, Milwaukie, and Bend. After the first year: no-cause termination is not allowed. For qualifying-reason terminations after year one: 90 days’ notice plus one month’s rent relocation (if landlord owns more than 4 units).

Do I have to pay relocation for a no-cause termination?

In Portland: yes, always — $2,900 to $4,500 depending on unit size. In the rest of Oregon during the first year: no relocation is required for no-cause terminations. After the first year: no-cause is banned; qualifying-reason terminations require one month’s rent relocation if you own more than four units.

How does Oregon compare to Washington?

Washington bans no-cause evictions from day one of the tenancy (no first-year exception). Oregon allows no-cause during the first year but bans it after. Washington’s approach is stricter, with 17 enumerated just cause reasons applying from the start. Oregon’s first-year grace period is more favorable to landlords.

What happens if I violate the just cause eviction law?

The tenant can bring a wrongful eviction action to recover actual damages, attorney fees, and court costs. If you claim owner move-in but don’t actually move in, or claim renovation but don’t complete the work, you face liability for wrongful eviction. Tenants can also file complaints with the Oregon Bureau of Labor and Industries.

Automate Compliance Tracking

Tracking tenancy duration, just cause eligibility, notice periods, and relocation obligations across multiple properties is complex. LeaseBase tracks all of these automatically, alerting you when a tenancy passes the one-year threshold, calculating notice deadlines, and flagging Portland-specific relocation requirements for every unit in your portfolio.

Related reading

• Oregon Rent Cap Calculator
• Oregon Rent Increase Limits 2026: 9.5% Cap Explained
• Portland Relocation Assistance Guide
• Oregon’s 15-Year Exemption Guide
• Oregon Manufactured Home Rent Cap
• Washington Rent Cap Calculator

← Oregon Compliance Hub

Oregon’s 15-Year New Construction Exemption

Oregon’s statewide rent cap under SB 608 includes a significant exemption for newer construction. Units that are less than 15 years old from the date of their first certificate of occupancy are exempt from the rent increase cap. This means landlords of these properties can raise rent by any amount, at any time (subject to notice requirements), without being limited by the 7% + CPI formula.

The purpose of this exemption is to encourage new housing construction by assuring developers and investors that their initial returns will not be capped during the early years of a building’s life. The legislature reasoned that rent control on brand-new construction could discourage development at a time when Oregon desperately needed new housing supply.

How to Calculate Whether Your Property Is Exempt

The calculation is straightforward: subtract the certificate of occupancy year from the current year. If the result is less than 15, the property is exempt.

For 2026:

Exempt if certificate of occupancy was issued after January 1, 2011
Example: CoO issued June 2012 → 2026 – 2012 = 14 years → EXEMPT
Example: CoO issued March 2010 → 2026 – 2010 = 16 years → NOT EXEMPT
Example: CoO issued December 2011 → 2026 – 2011 = 15 years → NOT EXEMPT (must be LESS than 15)

Year-by-Year Exemption Expiration

Calendar Year	Exempt If CoO After	First Year of Coverage for CoO Issued
2024	January 1, 2009	2009
2025	January 1, 2010	2010
2026	January 1, 2011	2011
2027	January 1, 2012	2012
2028	January 1, 2013	2013
2029	January 1, 2014	2014
2030	January 1, 2015	2015

The key detail is that this is a rolling window. Every January 1, the window shifts forward by one year. A property that was exempt yesterday may lose its exemption on January 1 of the next year. Landlords who rely on this exemption must track the expiration date for each property and plan their rent strategy accordingly.

What Happens When the Exemption Expires

When a property’s 15-year exemption expires, the rent cap begins applying to that property immediately. The landlord can no longer raise rent above the annual cap (7% + CPI, currently 9.5% for 2026). However, the existing rent at the time of expiration becomes the new baseline — there is no requirement to roll back rent to what it would have been under the cap.

This creates an important strategic consideration. If you own a property approaching the end of its exemption window, you may want to adjust rent to market rate before the exemption expires. Once the cap takes effect, you are limited to annual increases of 7% + CPI (or 10% maximum), which means it could take years to reach market rate through incremental increases.

Example: Transitioning Out of Exemption

Property CoO: 2012
Exemption expires: January 1, 2027
Current rent (2026): $1,500/month
Market rent: $2,000/month

Option A: Raise to $2,000 before Jan 1, 2027 (while still exempt) — allowed
Option B: Wait until 2027, then raise $1,500 → $1,642 (9.5% cap) — would take 4+ years to reach market

Note: If in Portland, Option A would trigger $2,900–$4,500 relocation assistance (33% increase > 10%)

Oregon vs California vs Washington: Comparing Exemption Windows

All three West Coast rent control states include new construction exemptions, but the windows differ:

State	Exemption Window	Measured From	2026 Exemption Cutoff
Oregon (SB 608)	15 years	First certificate of occupancy	CoO after Jan 1, 2011
California (AB 1482)	15 years	Certificate of occupancy	CoO after Jan 1, 2011
Washington (HB 1217)	12 years	First certificate of occupancy	CoO after Jan 1, 2014

Oregon and California share the same 15-year window, while Washington uses a shorter 12-year window. This means a property built in 2013 would be exempt in Oregon and California but subject to the rent cap in Washington. Landlords with properties in multiple West Coast states need to track different exemption timelines for each property.

The policy rationale behind different windows reflects different legislative priorities. Washington’s shorter 12-year window was a compromise during the HB 1217 debate — shorter exemptions mean more properties are covered by rent caps sooner, providing broader tenant protection. Oregon and California’s longer 15-year windows provide more runway for developers to achieve market returns before caps take effect.

Certificate of Occupancy: What Counts

The exemption is measured from the first certificate of occupancy (CoO), not from the date the building was purchased, the date the current owner acquired it, or the date of any renovation. This distinction matters in several scenarios:

Renovated Properties

If you purchase a building constructed in 1990 and perform a complete renovation in 2020, the property is not exempt. The CoO dates to 1990 (or whenever the original building first received its CoO), which is well beyond the 15-year window. Renovations, no matter how extensive, do not reset the CoO date unless the building is demolished and a entirely new structure is built.

Converted Properties

If a commercial building is converted to residential use, the relevant date is the residential certificate of occupancy. If a warehouse built in 2000 receives a residential CoO in 2018 after conversion, the 15-year window starts from 2018, and the property would be exempt through 2032.

Phased Developments

In multi-building developments where buildings receive separate certificates of occupancy at different times, each building’s exemption is calculated independently. Building A with a 2010 CoO would not be exempt in 2026, while Building B with a 2015 CoO would remain exempt through 2029.

How to Find Your CoO Date

If you don’t know your property’s certificate of occupancy date, you can:

• Check with your local city or county building department
• Review your property’s records on the county assessor’s website (often listed as “year built”)
• Request a copy of the original CoO from the jurisdiction that issued it
• Check title company records from your purchase closing

Note that “year built” on the assessor’s records may differ from the actual CoO date by a year or more, depending on construction timelines and permit processing. For properties near the 15-year boundary, the actual CoO date matters — rely on the official certificate, not the assessor’s estimated year.

Other Oregon Exemptions

The 15-year rule is the most common exemption, but Oregon also exempts two other categories from the rent cap:

Subsidized Housing

Units subject to federal, state, or local rent subsidies or rent restrictions through regulatory agreements are exempt from the SB 608 rent cap. This includes Section 8 project-based units, Low Income Housing Tax Credit (LIHTC) units, and units with other deed restrictions that already limit rents. The logic is that these units already have government-mandated rent limits that typically are stricter than the statewide cap.

Week-to-Week Tenancies

Tenancies where rent is paid on a week-to-week basis are exempt from the rent cap. This applies primarily to SRO (single room occupancy) hotels and similar short-term residential arrangements. Month-to-month and fixed-term leases are not exempt under this provision, even if the tenant pays weekly installments.

What the Exemption Does NOT Remove

The 15-year exemption only removes the rent cap. It does not exempt properties from:

• Just cause eviction protections — after the first year, no-cause terminations are banned even for exempt properties. The landlord must cite a qualifying reason under ORS 90.427.
• Notice requirements — the 90-day notice requirement for rent increases applies to all properties, exempt or not.
• One-increase-per-12-months rule — even exempt properties can only raise rent once per 12 months.
• Portland’s relocation assistance — if you raise rent 10% or more on an exempt property in Portland, you still owe relocation assistance ($2,900–$4,500 by unit size). The exemption removes the state cap but not the city’s relocation trigger.
• Portland’s Rental Registration Program — registration is required for all rental units in Portland.
• Portland’s screening criteria limitations — these apply to all landlords in Portland.

This is the most common misconception among landlords of newer properties. Being exempt from the rent cap does not mean you operate in an unregulated environment. Just cause eviction, notice requirements, and local ordinances still apply fully.

Strategic Considerations for Landlords

Properties Approaching Exemption Expiration

If your property’s exemption will expire within the next 1–3 years, consider:

1. Adjust rent to market rate now. Once the cap takes effect, you can only increase by 7% + CPI annually. If your rent is significantly below market, the gap will widen each year under the cap.
2. Factor in Portland relocation costs. If you’re in Portland and your market adjustment exceeds 10%, the relocation cost may eat into or exceed the near-term benefit of the increase.
3. Document the CoO date. Ensure you have the official certificate of occupancy on file. If a tenant challenges your exemption claim, you need documentation.
4. Plan notice timing. Even exempt properties require 90 days’ notice. If your exemption expires January 1, 2027, you need to serve notice by October 2, 2026 for the increase to take effect before the cap kicks in.

Properties Currently Exempt

If your property has many years of exemption remaining, you have flexibility on rent increases but should still:

• Track the expiration date and plan for the transition to cap coverage
• Be aware of Portland’s 10% relocation trigger, which applies regardless of exemption
• Comply with the 90-day notice requirement and one-increase-per-12-months rule
• Remember that just cause eviction protections apply after the first year

Frequently Asked Questions

Is my Oregon rental exempt from rent control?

Your property is exempt from the rent cap if it is less than 15 years old from the date of its first certificate of occupancy. For 2026, this means units with a CoO issued after January 1, 2011 are exempt. Subsidized housing and week-to-week tenancies are also exempt. Use the Oregon Rent Cap Calculator to check your specific property.

What happens when my 15-year exemption expires?

The rent cap begins applying immediately. Your current rent becomes the new baseline, and future increases are limited to 7% + CPI (or 10% maximum). There is no rent rollback. If your rent is below market, consider adjusting before the exemption expires.

Does a major renovation reset the 15-year clock?

No. The exemption is based on the first certificate of occupancy, not the date of renovation. Only demolition and construction of an entirely new building (with a new CoO) resets the clock. Gut renovations, seismic upgrades, and other major work do not qualify.

How does Oregon’s exemption compare to California and Washington?

Oregon and California both use a 15-year window from the certificate of occupancy. Washington uses a shorter 12-year window. A property built in 2013 is exempt in Oregon and California but covered in Washington. All three states measure from the first certificate of occupancy.

Do exempt properties have to follow just cause eviction rules?

Yes. The exemption only removes the rent cap. Just cause eviction protections under ORS 90.427 apply to all residential properties after the first year of tenancy, regardless of exemption status. Notice requirements and the one-increase-per-12-months rule also apply.

Track Your Exemption Automatically

The 15-year window is a moving target that shifts every year. LeaseBase tracks exemption expiration dates automatically for every property in your portfolio and alerts you before a property transitions from exempt to cap-covered. You can plan your rent strategy years in advance instead of being caught off guard.

Related reading

• Oregon Rent Cap Calculator
• Oregon Rent Increase Limits 2026: 9.5% Cap Explained
• Portland Relocation Assistance Guide
• No-Cause Evictions in Oregon: What Changed After Year One
• Oregon Manufactured Home Rent Cap
• Washington Rent Cap Exemptions Guide

← Oregon Compliance Hub

Portland’s Relocation Assistance: The Most Expensive Rent Increase Mistake in Oregon

Portland’s relocation assistance ordinance is one of the most aggressive tenant protection measures in the country. Unlike Oregon’s statewide requirement (one month’s rent for qualifying-reason terminations after the first year), Portland’s rule has two separate triggers: no-cause terminations and rent increases of 10% or more. The amounts are fixed by unit size, ranging from $2,900 for a studio to $4,500 for a three-bedroom or larger unit.

For landlords who are unaware of this requirement, the financial surprise can be devastating. A landlord who raises rent on a 3-bedroom unit from $2,000 to $2,200 (a 10% increase) would owe $4,500 in relocation assistance — more than two months of rent — on top of the increase itself. Many Portland landlords have learned about this obligation only after a tenant or housing advocacy organization informed them, by which point the liability had already been incurred.

When Is Portland Relocation Assistance Required?

Portland’s relocation assistance is required in two distinct situations:

Trigger 1: No-Cause Termination

When a landlord issues a no-cause termination at any point during the tenancy, the landlord must pay relocation assistance to the tenant. During the first year of tenancy, Portland (unlike the rest of Oregon) requires 90 days’ notice for no-cause terminations. After the first year, no-cause terminations are banned entirely under Oregon’s statewide ORS 90.427 — the landlord must cite a qualifying reason, which triggers both the statewide relocation requirement (one month’s rent, unless the landlord owns four or fewer units) and Portland’s separate relocation assistance amounts.

Trigger 2: Rent Increase of 10% or More

When a landlord raises rent by 10% or more within a 12-month period, the landlord must pay relocation assistance to the tenant — even if the tenant does not actually move out. This is the trigger that catches most landlords off guard. The 10% threshold is calculated based on the total increase within any rolling 12-month window, not per individual increase (though Oregon law already limits increases to one per 12 months).

Under the current 2026 rent cap of 9.5%, this trigger would not apply to most standard residential properties (because the maximum allowable increase is below 10%). However, it remains relevant for:

• Exempt properties — units less than 15 years old from their certificate of occupancy are exempt from the rent cap and can be raised above 10%
• Properties where the cap exceeds 10% — in years when CPI is high enough that 7% + CPI exceeds 10% (rare under the SB 611 hard cap, but theoretically possible for exempt properties)
• Year-over-year compounding — if a landlord delayed an increase and then applied a larger-than-usual raise to catch up

Relocation Assistance Amounts by Unit Size

Portland’s relocation amounts are fixed dollar amounts based on the size of the unit, not based on the tenant’s rent. This means a landlord of a studio renting for $800 and a landlord of a studio renting for $1,500 owe the same $2,900.

Unit Size	Relocation Amount	Typical % of Annual Rent
Studio / SRO	$2,900	~16–30% depending on rent
1 Bedroom	$3,300	~15–25% depending on rent
2 Bedrooms	$4,200	~15–22% depending on rent
3+ Bedrooms	$4,500	~12–20% depending on rent

These amounts are updated periodically by the City of Portland. The current figures should be verified with the Portland Housing Bureau before relying on them for specific compliance decisions.

How Portland Relocation Compares to Other Cities

Portland’s relocation assistance is part of a growing trend among West Coast cities to impose financial consequences on landlords who displace tenants through large rent increases or no-cause terminations. Understanding how Portland compares to other cities can help landlords with multi-state portfolios manage compliance risk.

City/State	Trigger	Amount	Key Difference
Portland, OR	No-cause OR 10%+ increase	$2,900–$4,500 by unit size	Fixed by unit size, not rent
Seattle, WA	10%+ increase (EDRA)	3x monthly housing cost	Proportional to rent, not fixed
Tacoma, WA	5%+ increase	EDRA amount (contact city)	Lower threshold than Portland
Olympia, WA	7%+ increase	2.5x monthly rent	Proportional to rent
California (AB 1482)	No-fault eviction	1 month’s rent or waive last month	Only on termination, not rent increases
Oregon (statewide)	Qualifying-reason termination after year 1	1 month’s rent (if >4 units)	Portland amounts are in addition

Portland’s approach is unique in that it uses fixed dollar amounts rather than a multiple of rent. This means the relocation cost is proportionally higher for lower-rent units — a feature designed to protect tenants in more affordable housing. Seattle’s EDRA, by contrast, scales with rent, which means landlords of expensive properties face larger obligations.

How to Avoid Triggering Portland Relocation Assistance

For most Portland landlords subject to the standard rent cap, the simplest way to avoid triggering relocation assistance is to keep rent increases below 10%. Under the current cap framework, this is straightforward — the 2026 maximum is 9.5%, which is inherently below the 10% trigger. However, there are situations where landlords need to be more careful:

1. Exempt Properties

If your property is exempt from the rent cap (less than 15 years old, subsidized housing, or week-to-week tenancy), you can legally raise rent above 9.5%. But if you raise it 10% or more, Portland’s relocation assistance kicks in regardless of exemption status. The exemption only removes the rent cap — it does not remove Portland’s local relocation requirement.

2. Delayed Increases

If you haven’t raised rent in several years and want to catch up, be aware that a single increase of 10% or more will trigger relocation. Consider whether the increase amount is worth the relocation cost. In some cases, it may be more economical to implement a 9.9% increase (just below the trigger) and follow with another increase in 12 months.

3. Vacancy Turnover

Portland allows vacancy decontrol — when a tenant voluntarily vacates, you can set any initial rent for the next tenancy. If you need a significant rent adjustment, waiting for natural turnover avoids the relocation trigger entirely. The relocation obligation only applies to increases during an existing tenancy.

4. Document the Calculation

For increases near the 10% threshold, document your calculation carefully. A 9.5% increase on a $2,000 rent is $190 (new rent $2,190). If you accidentally set the new rent at $2,200 ($200 increase = 10.0%), you’ve triggered $4,200 in relocation for a 2-bedroom — all for an extra $10 per month.

Portland’s Rental Registration Program

In addition to relocation assistance, Portland requires all rental property owners to register with the Portland Rental Registration Program. This program, administered by the Portland Housing Bureau, requires landlords to:

• Register each rental unit with the city
• Pay an annual per-unit registration fee
• Provide contact information for a local property management representative
• Comply with periodic inspections and reporting requirements

Failure to register can result in fines and may complicate your ability to enforce lease terms or pursue evictions. The registration requirement applies to all rental units in Portland, regardless of whether they are exempt from the rent cap.

Portland’s Screening Criteria Limitations

Portland also imposes restrictions on tenant screening criteria that go beyond Oregon’s statewide standards. These include limitations on how landlords can use criminal history, credit history, and rental history in tenant selection decisions. While not directly related to rent increases, these requirements are part of the broader Portland compliance landscape that landlords must navigate.

Specifically, Portland’s screening ordinance limits the lookback period for criminal history, restricts the use of certain types of criminal records, and requires landlords to apply screening criteria consistently across all applicants. Landlords who use third-party screening services should verify that their screening criteria comply with Portland’s local requirements in addition to Oregon’s statewide fair housing laws.

The Statewide Context: Oregon’s ORS 90.427 Relocation

Portland’s relocation assistance exists on top of Oregon’s statewide relocation requirement. Under ORS 90.427, when a landlord terminates a tenancy after the first year for a qualifying landlord reason (owner move-in, demolition, major renovation), the landlord must provide:

• 90 days’ written notice
• One month’s rent as relocation assistance (unless the landlord owns four or fewer residential dwelling units)

In Portland, both the statewide requirement and the Portland requirement can apply simultaneously. A Portland landlord who terminates a tenancy after the first year for owner move-in would owe both one month’s rent under ORS 90.427 and the Portland relocation amount ($2,900–$4,500 by unit size). This dual obligation makes Portland one of the most expensive cities in the country for tenant displacement.

What Happens If You Don’t Pay?

Landlords who fail to pay required relocation assistance face several consequences. The tenant can bring a civil action to recover the relocation amount, plus potential damages and attorney’s fees. The City of Portland can also enforce the requirement through its code enforcement process, which may include fines and penalties.

Additionally, failure to pay relocation assistance can be raised as a defense in any eviction proceeding. If a landlord serves a no-cause termination without paying relocation assistance, the tenant can contest the termination and the court may deny the eviction until the obligation is satisfied.

Practical Impact: Real Numbers for Portland Landlords

Consider a Portland landlord with five 2-bedroom units, each renting for $1,800 per month. Here is how different scenarios play out financially:

Scenario	Rent Increase	New Rent	Relocation Cost	Net Annual Gain
9.5% increase (at cap)	$171/mo	$1,971	$0	$2,052/year per unit
10% increase (exempt property)	$180/mo	$1,980	$4,200	-$2,040/year per unit (year 1)
15% increase (exempt property)	$270/mo	$2,070	$4,200	-$960/year per unit (year 1)

The math is clear: for exempt properties, a rent increase above 10% must be substantial enough to recover the relocation cost within a reasonable timeframe. A 10% increase on a $1,800 unit triggers $4,200 in relocation but only generates an extra $9/month over a 9.5% increase — it would take nearly 39 years to recoup the relocation cost from that marginal difference. Even a 15% increase would take over three years to offset the relocation payment.

Frequently Asked Questions

When does Portland relocation assistance apply?

Portland relocation assistance is required in two situations: (1) when a landlord issues a no-cause termination at any point during the tenancy, and (2) when a landlord raises rent by 10% or more within a 12-month period. The obligation applies regardless of whether the property is exempt from Oregon’s statewide rent cap.

How much is Portland relocation assistance?

The amounts are fixed by unit size: Studio/SRO $2,900, 1 bedroom $3,300, 2 bedrooms $4,200, 3+ bedrooms $4,500. These amounts are in addition to Oregon’s statewide requirement of one month’s rent for qualifying-reason terminations after the first year.

Does relocation apply even if the tenant doesn’t move out?

For rent increases of 10% or more, the relocation obligation is triggered by the increase itself, regardless of whether the tenant actually vacates. The tenant may choose to remain in the unit and still receive the relocation payment.

Can I avoid relocation by keeping the increase below 10%?

Yes. If your rent increase is below 10%, the relocation assistance trigger for rent increases does not apply. Under the 2026 cap of 9.5%, most standard residential properties are inherently below the 10% trigger. However, relocation for no-cause terminations applies regardless of the rent increase amount.

Does Portland relocation apply to exempt properties?

Yes. The 15-year exemption removes the rent cap (allowing increases above 9.5%), but it does not remove Portland’s local relocation assistance requirement. If you raise rent 10% or more on an exempt property in Portland, you still owe relocation assistance.

Stay Compliant in Portland

Portland’s layered requirements — relocation assistance, rental registration, screening criteria, and the 90-day first-year notice — make it one of the most compliance-intensive cities for landlords in the Pacific Northwest. LeaseBase tracks all Portland-specific requirements automatically, including relocation triggers, registration deadlines, and notice requirements for every unit in your portfolio.

Related reading

• Oregon Rent Cap Calculator
• Oregon Rent Increase Limits 2026: 9.5% Cap Explained
• Oregon’s 15-Year Exemption Guide
• No-Cause Evictions in Oregon: What Changed After Year One
• Seattle EDRA Relocation Assistance Guide
• Washington Rent Cap Calculator

← Oregon Compliance Hub

Oregon’s Rent Cap for 2026: The 9.5% Maximum Explained

Oregon’s statewide rent cap for 2026 is 9.5%. This is calculated using the formula established by Senate Bill 608 (2019): 7% plus the Consumer Price Index. For 2026, the West Region CPI-U 12-month average is 2.5%, producing a combined rate of 9.5%. Because this falls below the 10% hard cap added by SB 611 in 2023, the formula result applies directly.

This makes Oregon’s 2026 cap slightly lower than Washington’s 9.68% (under HB 1217) and higher than most California regions under AB 1482, where caps range from roughly 6.3% to 8.8% depending on the metro area. Oregon’s single statewide rate simplifies compliance compared to California’s multi-region approach, but the formula itself is more generous to landlords than California’s 5% + CPI baseline.

How Oregon Became the First State with Statewide Rent Control

When Governor Kate Brown signed SB 608 on February 28, 2019, Oregon became the first state in American history to enact statewide rent control. The legislation emerged from a housing affordability crisis that had been building across the state for years. Portland, Eugene, and Bend were experiencing rapid rent growth that was displacing long-term residents, and the legislature acted before any of these cities had passed their own comprehensive rent control measures.

SB 608 established two core protections. First, it capped annual rent increases at 7% plus the Consumer Price Index — a formula designed to exceed typical inflation but prevent sudden, dramatic increases. Second, it created statewide just cause eviction protections after the first year of tenancy, preventing landlords from using no-cause terminations as a backdoor way to reset rents to market rate.

The original law did not include an absolute ceiling on rent increases. In years when inflation spiked, the 7% + CPI formula could produce caps well above 10%. This became a practical concern during the post-pandemic inflation surge of 2022-2023, when CPI figures climbed above 5% in many regions. In response, the legislature passed SB 611 in 2023, adding a 10% hard cap as an absolute maximum. The effective cap is now always the lower of 7% + CPI or 10%.

The Formula: 7% + CPI, Capped at 10%

Oregon’s rent cap formula is straightforward:

• Base rate: 7%
• Plus CPI: West Region CPI-U, 12-month average
• Hard cap: 10% maximum (SB 611)
• Effective cap: The lower of (7% + CPI) or 10%

Unlike California, which uses multiple metropolitan area CPI figures (Sacramento-Roseville, LA-Long Beach-Anaheim, SF-Oakland-Berkeley, San Diego, Riverside), Oregon uses a single regional CPI figure for the entire state. This is the West Region CPI-U 12-month average, as published by the Bureau of Labor Statistics. The Oregon Department of Administrative Services (DAS) Office of Economic Analysis takes this data and publishes the official maximum allowable rent increase percentage by September 30 each year for the following calendar year.

2026 Calculation

Base rate: 7.0%
West Region CPI-U (12-month average): 2.5%
Formula result: 7.0% + 2.5% = 9.5%
10% hard cap check: 9.5% < 10% — cap does not apply
2026 effective cap: 9.5%

Example: Portland 2-Bedroom at $1,800/month

Current rent: $1,800/month
Maximum increase: 9.5%
Maximum dollar increase: $1,800 × 0.095 = $171.00
Maximum new rent: $1,971.00
Notice required: 90 days written notice

How Oregon Compares to Washington and California

All three West Coast states now have statewide rent caps, but the formulas, CPI sources, and exemption windows differ in important ways:

Feature	Oregon (SB 608)	Washington (HB 1217)	California (AB 1482)
Formula	7% + CPI	7% + CPI	5% + CPI
Hard cap	10%	10%	10%
2026 effective cap	9.5%	9.68%	~6.3%–8.8% (by region)
CPI source	West Region CPI-U	Seattle-Tacoma-Bellevue CPI-U	Metro-specific CPI
New construction exemption	15 years from CoO	12 years from CoO	15 years from CoO
Rent increase notice	90 days	90 days (180 in Seattle)	30 days (≤10%)
Just cause eviction	After first year	From day one	After 12 months
Vacancy decontrol	Yes	Yes	Yes
Published by	OR DAS by Sep 30	WA Dept of Commerce	BLS data (Aug cycle)

The most notable difference is the base rate. Oregon and Washington both use a 7% base, while California uses a more restrictive 5% base. This means Oregon and Washington landlords can generally raise rents more than their California counterparts in any given year. However, Oregon’s 90-day notice requirement is significantly stricter than California’s 30-day requirement for increases at or below 10%.

The One-Increase-Per-12-Months Rule

Oregon law limits landlords to one rent increase per 12-month period. This is measured from the effective date of the last increase, not from the date the notice was served. The rule prevents landlords from imposing multiple smaller increases that collectively exceed the annual cap.

For example, if your last rent increase took effect on March 1, 2026, the earliest your next increase can take effect is March 1, 2027. You must provide 90 days’ written notice, which means the notice must be served by December 1, 2026 for a March 1, 2027 effective date.

This rule applies regardless of whether the property is exempt from the rent cap itself. Even if your property qualifies for the 15-year new construction exemption, you are still limited to one increase per 12 months.

When the Cap Changes: The September 30 Publication Cycle

Oregon’s rent cap follows a calendar-year cycle. The Oregon DAS Office of Economic Analysis publishes the official maximum allowable rent increase percentage by September 30 each year for the following calendar year. The new rate takes effect on January 1.

This differs from California, where new CPI rates take effect August 1 based on April-to-April BLS data, and from Washington, which also uses a calendar-year cycle but relies on June CPI data.

For practical compliance, this means Oregon landlords know their maximum increase rate for the entire upcoming year by October 1. You can plan your rent increase strategy for the following year with certainty, which is a significant advantage over states with rolling or mid-year rate changes.

Practical Compliance Steps for Oregon Landlords

1. Check the DAS publication each October. The official maximum rent increase percentage is published by September 30. Bookmark the Oregon DAS Office of Economic Analysis page and check it annually.
2. Calculate your specific maximum. Multiply your current rent by the published cap rate. Use the Oregon Rent Cap Calculator to factor in exemptions, Portland relocation triggers, and manufactured housing rules.
3. Serve notice 90+ days before the effective date. Oregon requires 90 days’ written notice for rent increases on month-to-month tenancies. Build this lead time into your calendar.
4. Track the 12-month rule. Note the effective date of each increase. You cannot increase rent again within 12 months of the last effective date.
5. Verify your exemption status annually. The 15-year window shifts every January 1. A property exempt in 2026 may lose its exemption in 2027.
6. Check Portland-specific requirements. If your property is in Portland, verify relocation assistance obligations, rental registration status, and screening compliance.
7. Document everything. Keep copies of all rent increase notices, delivery confirmations, and calculations showing your increase is within the cap.

What Happens If You Exceed the Cap?

Oregon law allows tenants to challenge rent increases that exceed the allowable cap. If a landlord imposes an increase above the maximum, the tenant can refuse to pay the excess amount and the landlord cannot terminate the tenancy for nonpayment of the excess portion. Tenants may also file complaints with the Oregon Bureau of Labor and Industries or pursue civil action to recover excess rent paid.

There is no formal penalty structure comparable to California’s punitive damages framework, but the practical consequences of exceeding the cap — including potential lawsuits, forced rent rollbacks, and reputational damage — make compliance essential. Errors are most commonly caused by landlords who don’t check the annual DAS publication or who miscalculate the 12-month interval between increases.

Manufactured Housing: A Separate Compliance Track

If you own or operate a manufactured home park with 30 or more spaces, you are subject to a separate 6% annual rent increase cap under HB 3054 (2025), regardless of the CPI. Smaller parks (30 or fewer spaces) follow the standard 7% + CPI formula. This distinction is critical — applying the wrong cap could expose you to tenant challenges and forced rent rollbacks. Read our complete guide to Oregon’s manufactured home rent cap for details.

Frequently Asked Questions

What is the Oregon rent cap for 2026?

The maximum annual rent increase in Oregon for 2026 is 9.5%, calculated as 7% plus the West Region CPI-U 12-month average of 2.5%. The 10% hard cap does not apply because 9.5% is already below 10%. For manufactured home parks with 30 or more spaces, a separate 6% cap applies under HB 3054.

How does Oregon calculate the rent cap?

Oregon uses the formula: 7% + West Region CPI-U (12-month average), with a hard cap of 10%. The Oregon DAS Office of Economic Analysis publishes the official maximum by September 30 each year for the following calendar year. Unlike California, Oregon uses a single statewide CPI figure rather than metro-specific rates.

When does the Oregon rent cap change?

The new rate is published by September 30 and takes effect January 1 of the following year. For 2026, the 9.5% rate was published by September 30, 2025, and applies to all rent increases with effective dates in calendar year 2026.

How does Oregon compare to Washington and California?

Oregon and Washington both use a 7% + CPI formula, while California uses 5% + CPI. All three cap at 10%. Oregon’s 2026 rate is 9.5%, Washington’s is 9.68%, and California varies by region (6.3%–8.8%). Oregon requires 90 days’ notice, matching Washington’s statewide minimum but far exceeding California’s 30 days.

Can I increase rent more than once in a year?

No. Oregon law limits landlords to one rent increase per 12-month period. The 12 months is measured from the effective date of the last increase, not from when notice was served. This rule applies regardless of whether the property is exempt from the rent cap.

Stay Compliant Without the Guesswork

Oregon’s rent cap is simpler than California’s multi-region system, but the Portland overlay, manufactured housing rules, and just cause eviction protections create real compliance complexity. LeaseBase tracks SB 608 compliance automatically for every property in your portfolio — including the annual cap rate, notice deadlines, exemption expiration dates, Portland relocation triggers, and manufactured housing caps. You see a clear dashboard instead of guessing whether you’re compliant.

Related reading

• Oregon Rent Cap Calculator
• Portland Relocation Assistance: Raise Rent 10% and You Owe Up to $4,500
• Oregon’s 15-Year Exemption: When Your Rental Isn’t Covered
• No-Cause Evictions in Oregon: What Changed After Year One
• Oregon Manufactured Home Park Rent: The Separate 6% Cap
• Washington Rent Cap Calculator

← Oregon Compliance Hub

How the Good Cause Eviction Opt-In Works

New York’s Good Cause Eviction (GCE) law took effect on April 20, 2024. In New York City, it applies automatically to all covered rental units. Outside NYC, the law does not apply unless the municipality passes a local law opting in.

This means that whether Good Cause Eviction affects your property depends entirely on where it is located. A 50-unit building in Kingston (opted in) is subject to GCE. An identical building in Saratoga Springs (not opted in) is not. The same state law, two completely different outcomes based on municipal action.

This tracker provides the current list of opted-in municipalities, the status of municipalities considering adoption, and context for how ETPA differs from GCE.

Municipalities That Have Opted In

The following municipalities have passed local laws adopting Good Cause Eviction as of mid-2026:

Municipality	Type	County	Date Adopted	Notes
New York City	City	5 boroughs	Automatic (April 2024)	No opt-in required; GCE applies to all covered units citywide
Albany	City	Albany	2024	State capital; among the first to adopt
Kingston	City	Ulster	2024	Had a local good cause eviction ordinance before the state law; local law may provide additional protections
Ithaca	City	Tompkins	2024	College town; tight rental market driven by Cornell and Ithaca College
Poughkeepsie	City	Dutchess	2024	City of Poughkeepsie (not Town of Poughkeepsie)
Beacon	City	Dutchess	2024	Hudson Valley arts community with rising rents
Newburgh	City	Orange	2024	Significant affordable housing concerns
Nyack	Village	Rockland	2024	Small Hudson Valley village
Hudson	City	Columbia	2024	Had prior local tenant protection measures
New Paltz (Town)	Town	Ulster	2024	College town (SUNY New Paltz)
New Paltz (Village)	Village	Ulster	2024	Both town and village adopted independently
Woodstock	Town	Ulster	2024	Tourist and arts community
Rochester	City	Monroe	2025	Largest opt-in city outside NYC; significant rental population
Hastings-on-Hudson	Village	Westchester	2025	Suburban Westchester community
Ossining	Village	Westchester	2025	Hudson Valley suburb
Peekskill	City	Westchester	2025	Northern Westchester
Mount Vernon	City	Westchester	2025	Southern Westchester; borders NYC
Port Chester	Village	Westchester	2025	Borders Connecticut
Saugerties	Town/Village	Ulster	2025	Hudson Valley community
Catskill	Village	Greene	2025	Growing tourism and second-home market

Geographic Patterns

The opt-in municipalities cluster in three distinct regions:

Hudson Valley

The heaviest concentration of opt-ins is in the Hudson Valley, particularly Ulster, Dutchess, and Orange counties. These communities have experienced significant rent increases driven by NYC transplants (accelerated during and after COVID), short-term rental conversion (Airbnb), and second-home purchases that have tightened the year-round rental market.

Kingston, New Paltz, Woodstock, Saugerties, Beacon, Poughkeepsie, Newburgh, and Hudson form a corridor of opt-in municipalities running along the Hudson River and into the Catskills.

Westchester County

Several Westchester municipalities have adopted GCE, joining the approximately 16 Westchester towns and villages that already participate in ETPA (rent stabilization). Westchester’s proximity to NYC, high rents, and politically engaged tenant population have driven adoption.

Hastings-on-Hudson, Ossining, Peekskill, Mount Vernon, and Port Chester represent a growing Westchester presence. Additional Westchester municipalities are reportedly considering adoption.

Upstate Cities

Albany and Rochester are the two largest upstate cities to adopt GCE. Both have significant renter populations (Albany: ~60% renter-occupied, Rochester: ~60% renter-occupied) and active tenant advocacy organizations. Ithaca, while smaller, has an extremely tight rental market driven by its college student population.

Municipalities Considering Adoption

As of mid-2026, several additional municipalities have introduced or are considering Good Cause Eviction opt-in legislation. These include:

• Syracuse (Onondaga County) — Public discussions underway; significant renter population
• Buffalo (Erie County) — Advocacy groups pushing for adoption; city council has discussed the issue
• Yonkers (Westchester County) — Already an ETPA municipality; GCE would cover additional units
• White Plains (Westchester County) — ETPA participant; GCE discussions ongoing
• New Rochelle (Westchester County) — Under consideration
• Rhinebeck (Dutchess County) — Hudson Valley community with rising housing costs
• Saugerties (Ulster County) — Adopted in 2025

This list is not exhaustive. Any municipality in New York State (except NYC, where GCE is already in effect) can opt in by passing a local law. The trend has been toward expansion, not contraction.

How to Check If Your Municipality Has Opted In

If your rental property is outside New York City, you need to verify whether your municipality has adopted Good Cause Eviction. Here is how:

1. Check your municipality’s website — Look for local laws or ordinances adopted in 2024 or later related to tenant protections, good cause eviction, or rent increase limits
2. Contact the municipal clerk — The clerk’s office maintains records of all local laws and can confirm whether GCE has been adopted
3. Check with your local apartment association — Organizations like the Apartment and Realty Owners Association (AROA) or local landlord groups track opt-in activity
4. Use our calculator — The LeaseBase NY Good Cause Calculator maintains an updated database of opt-in municipalities

Important: Both the town and village must be checked separately. In New York, towns and villages are distinct municipalities even when they share a name (as with New Paltz). If the village has opted in but the town has not (or vice versa), the law applies only in the municipality that adopted it.

ETPA vs. GCE: Two Different Opt-In Programs

A common source of confusion is the difference between ETPA (Emergency Tenant Protection Act) and GCE (Good Cause Eviction). These are entirely separate programs with different requirements, different coverage, and different effects.

Feature	ETPA (Rent Stabilization)	GCE (Good Cause Eviction)
What it does	Extends NYC rent stabilization to the municipality	Caps rent increases and requires just cause for eviction
Rent increase mechanism	RGB sets annual percentage	CPI + 5% or 10% (whichever is less)
Buildings covered	6+ units built before 1974	All covered units (subject to exemptions)
Registration required	Yes (annual DHCR registration)	No
Vacancy reset	No (HSTPA eliminated vacancy bonus/decontrol)	Yes — landlord sets rent for new tenant
Number of participating municipalities	~40 (primarily Nassau, Westchester, Rockland, Ulster)	~19 (plus NYC)
Counties available	Nassau, Westchester, Rockland, Ulster only	Any county statewide
Sunset	None (permanent under HSTPA)	June 15, 2034

Can a Municipality Have Both?

Yes. A municipality can participate in both ETPA and GCE. In that case:

• Buildings that qualify for rent stabilization (6+ units, pre-1974) follow rent stabilization rules under ETPA
• Buildings that don’t qualify for stabilization but are covered by GCE (not exempt) follow GCE rules
• Rent-stabilized units are explicitly exempt from GCE, so there is no overlap for any individual unit

The result is broader tenant protection: ETPA covers the larger, older buildings, while GCE covers the smaller and newer buildings that ETPA doesn’t reach.

ETPA Municipalities (For Reference)

The following municipalities participate in ETPA, which extends rent stabilization (not Good Cause Eviction) to qualifying buildings. This is a separate program from GCE:

Nassau County (~16 municipalities)

• Hempstead (Town, several incorporated villages), Long Beach, Glen Cove, Rockville Centre, Freeport, Garden City, Lynbrook, Floral Park, and others

Westchester County (~16 municipalities)

• White Plains, Yonkers, New Rochelle, Mount Vernon, Tarrytown, Mamaroneck (Town and Village), Ossining, Dobbs Ferry, Hastings-on-Hudson, Irvington, Pelham Manor, Greenburgh, Scarsdale, Port Chester, Rye, and others

Rockland County (~5 municipalities)

• Haverstraw (Town and Village), Spring Valley, Nyack, and others

Ulster County

• Several municipalities, including Kingston

ETPA municipalities have their own DHCR registration requirements and RGB-governed rent increases. For buildings in these municipalities, check whether the building is registered as rent-stabilized before evaluating GCE applicability. For a detailed comparison, see our guide on Rent Stabilization vs Good Cause Eviction.

What Opt-In Means for Landlords

If your municipality has opted in (or is considering doing so), here is what changes for you:

Before Opt-In

• You can raise rent to any amount at lease renewal (with proper notice)
• You can choose not to renew a lease for any reason (with proper notice)
• You can terminate a month-to-month tenancy for any reason (with proper notice)
• The only constraints are the general 30/60/90-day notice requirements under RPL 226-c

After Opt-In

• Rent increases above CPI + 5% (or 10%) are presumptively unreasonable and can be challenged
• You must have one of 11 enumerated just cause grounds to evict or non-renew
• You must still provide 30/60/90-day notice based on tenancy length
• Exemptions may apply (10-unit rule, 245% FMR, new construction, etc.) — see our exemptions guide

The Vacancy Reset Difference

One critical distinction from rent stabilization: under GCE, landlords can set any rent for a new tenant when a unit is vacated. The rent increase cap only applies to existing tenants during their tenancy. This means turnover remains an opportunity to adjust rents to market levels, which is not the case under rent stabilization (where HSTPA eliminated vacancy bonuses and decontrol).

Monitoring for Changes in Your Municipality

The opt-in landscape is dynamic. Municipalities can adopt GCE at any time by passing a local law. As a landlord with properties outside NYC, you need to monitor your municipality’s legislative activity, particularly:

• City/town/village board meetings — Tenant protection measures are typically discussed in public sessions before a vote
• Local news coverage — GCE adoption generates local media attention
• Tenant advocacy activity — Organized tenant groups (like the statewide Housing Justice for All coalition) often telegraph which municipalities they are targeting for opt-in campaigns
• Neighboring municipality actions — Opt-in tends to cluster geographically, as advocacy organizations work region by region

“The opt-in map is expanding. If your municipality has not adopted Good Cause Eviction yet, that does not mean it will not. The trend line is clear: more municipalities are opting in, not fewer. Prudent landlords are preparing for GCE compliance before their municipality acts, not after.”

— Rachid Abadli, Founder & CEO at LeaseBase

Frequently Asked Questions

Can a municipality opt out after opting in?

The state law does not explicitly address opt-out. A municipality that adopted GCE by local law could theoretically repeal that local law. However, no municipality has done so as of mid-2026, and the political dynamics make opt-out unlikely in most communities that have adopted the law.

If my town opts in, when does it take effect?

The effective date depends on the local law. Some municipalities adopt the law with immediate effect; others specify an effective date 30, 60, or 90 days after adoption. Check the specific local law for the effective date.

Does the county matter, or just the municipality?

Only the municipality matters. Counties cannot opt in or out of GCE — only cities, towns, and villages can. If Albany (the city) opts in, that does not affect the Town of Colonie or the Town of Guilderland in Albany County.

I own properties in multiple municipalities. What if some have opted in and some have not?

GCE applies on a property-by-property basis based on where each property is located. A building in an opt-in municipality is subject to GCE (unless exempt). A building in a non-opt-in municipality is not, regardless of your other properties. However, your statewide unit count across all properties still determines whether the 10-unit exemption applies.

Does GCE apply in Nassau and Suffolk counties?

As of mid-2026, no municipalities in Nassau or Suffolk County have opted into GCE. However, approximately 16 Nassau County municipalities participate in ETPA (rent stabilization), which provides similar protections for qualifying buildings. GCE would cover the gap — smaller buildings and newer construction that ETPA does not reach.

What about Long Island?

Long Island (Nassau and Suffolk counties) has not seen GCE opt-ins as of mid-2026. The rental market on Long Island is different from NYC and the Hudson Valley, with a higher proportion of single-family rentals and smaller buildings that may be exempt under the 10-unit rule. However, tenant advocacy is active in both counties, and future opt-ins are possible.

Stay Ahead of the Opt-In Trend

The Good Cause Eviction opt-in landscape changes regularly. New municipalities adopt the law, and the implications for your portfolio can change overnight. Staying informed is not just good practice — it is essential for compliance.

LeaseBase’s NY Good Cause Calculator maintains an updated database of opt-in municipalities and evaluates your properties against all GCE exemptions. When a new municipality opts in, you will know whether your properties are affected and what your compliance obligations are.

Related Reading

• New York Good Cause Eviction Law: The Complete Guide
• Is Your NY Rental Exempt from Good Cause?
• Rent Stabilization vs Good Cause Eviction: Which Law Applies?
• HSTPA Changed Everything: What NY Landlords Lost in 2019
• MCI and IAI Caps After HSTPA
• NYC Rent Freeze 2026-27: What the 0% RGB Increase Means
• NYC Security Deposits, Late Fees, and Application Fees

← New York Compliance Hub

The HSTPA Deposit and Fee Limits

The Housing Stability and Tenant Protection Act of 2019 (HSTPA) imposed strict new limits on security deposits, late fees, and application fees for all residential rentals in New York State. These rules apply to every residential rental — not just rent-stabilized apartments. Whether you own a stabilized building in Manhattan, a market-rate duplex in Buffalo, or a single-family rental in Ithaca, these limits apply to you.

Understanding these rules is not optional. Violations carry real penalties, including potential treble damages for overcharges, and can undermine your position in any eviction or nonpayment proceeding.

Security Deposits: One Month Maximum

The Rule

Under General Obligations Law Section 7-108 (as amended by HSTPA), landlords may collect a security deposit of no more than one month’s rent. This is a hard cap with no exceptions.

What You Cannot Collect

The one-month limit includes everything. You cannot collect any of the following in addition to the security deposit:

Prohibited Charge	Pre-HSTPA Practice	Current Status
Pet deposit	Commonly $250-$500+	Prohibited — no additional deposit for pets
Last month’s rent (advance)	Common for new tenants	Prohibited — cannot collect last month’s rent in advance
Key deposit	$25-$100 typical	Prohibited — no separate charge for keys
Move-in fee	Varies	Prohibited if it functions as an additional deposit
Extra month for credit issues	2-3 months for tenants with poor credit	Prohibited — 1 month maximum regardless of credit history
Furniture deposit	$200-$500 for furnished units	Prohibited — included in the one-month cap

The math is simple: If the monthly rent is $2,000, the maximum security deposit is $2,000. Period. No pet fee, no key fee, no last month, no extra deposit for any reason.

Interest-Bearing Account Requirements

For buildings with 6 or more residential units, security deposits must be held in an interest-bearing account at a banking institution in New York State. The requirements are:

• The account must be separate from the landlord’s personal or operating funds
• The landlord must notify the tenant of the bank name, account type, and amount deposited
• Interest earned belongs to the tenant (minus 1% annual administrative fee the landlord may retain)
• The landlord must either pay the interest to the tenant annually or credit it against rent

For buildings with fewer than 6 units, there is no statutory requirement to place the deposit in an interest-bearing account, but it must still be held in a legitimate account (not commingled with the landlord’s personal funds in NYC).

Returning the Deposit: 14 Days

When a tenancy ends, the landlord must return the security deposit (or the balance after lawful deductions) within 14 days of the tenant’s move-out. The return must include:

• An itemized statement describing each deduction, the amount, and the reason
• Receipts or evidence for repair costs deducted (if deductions are for damage)
• The remaining balance of the deposit

What you can deduct:

• Unpaid rent
• Damage beyond normal wear and tear (with documentation)
• Reasonable cleaning costs if the unit was left in an unreasonable condition

What you cannot deduct:

• Normal wear and tear (faded paint, worn carpet, minor scuffs)
• Pre-existing damage that was not documented at move-in
• Charges for improvements or upgrades (painting the entire apartment is the landlord’s responsibility)

Penalties for Violations

If a landlord fails to return the deposit within 14 days or fails to provide an itemized statement:

• The tenant can sue for the full deposit amount
• Courts may award punitive damages up to twice the deposit amount
• The landlord loses the right to assert any deduction claims
• Attorney’s fees may be awarded to the prevailing tenant

If a landlord collects more than one month’s rent as a security deposit, the tenant can file an overcharge claim. Under HSTPA’s expanded enforcement provisions, overcharges can result in treble damages (three times the overcharge amount) if found to be willful.

Late Fees: $50 or 5%, Whichever Is Less

The Rule

Under Real Property Law Section 238-a (as amended by HSTPA), late fees for residential rentals are capped at the lesser of $50 or 5% of the monthly rent. Additionally, no late fee can be charged until the rent is at least 5 days past due.

How the Cap Works

Monthly Rent	5% of Rent	$50 Cap	Maximum Late Fee
$800	$40	$50	$40 (5% is less)
$1,000	$50	$50	$50 (equal)
$1,200	$60	$50	$50 ($50 is less)
$1,500	$75	$50	$50 ($50 is less)
$2,000	$100	$50	$50 ($50 is less)
$3,000	$150	$50	$50 ($50 is less)

In practice, $50 is the maximum late fee for any unit renting at $1,000 or more per month, which covers the vast majority of apartments in New York City and most of the state. The 5% provision only matters for units renting below $1,000.

The 5-Day Grace Period

No late fee can be assessed until the rent is at least 5 days past due. If rent is due on the 1st of the month, the earliest a late fee can be charged is the 6th. This is a statutory grace period — you cannot shorten it in the lease.

What Your Lease Can and Cannot Say

• Your lease can specify a late fee of $50 or less (or 5% if rent is under $1,000)
• Your lease cannot specify a late fee exceeding these limits, even if the tenant agrees to it
• Your lease cannot impose a late fee before the 5-day grace period expires
• Your lease cannot impose compounding late fees, daily late charges, or interest on late rent (these exceed the statutory cap)

Pre-HSTPA Leases

If your existing lease has a late fee provision that exceeds the HSTPA limits (common in leases drafted before June 2019), that provision is unenforceable. The HSTPA limits apply regardless of what the lease says. You should update your lease to reflect the current law at the next renewal.

Application Fees: $20 Maximum

The Rule

Under Real Property Law Section 238-b, the maximum fee a landlord can charge for a rental application is $20. This $20 must cover all costs associated with the application, including:

• Credit report
• Background check
• Eviction history search
• Application processing

You cannot charge separate fees for each service. The total cannot exceed $20.

Practical Implications

Most credit reports and background checks cost $15-$30 per applicant from major screening services. The $20 cap means landlords typically cannot fully recover screening costs if they use premium services. Options include:

• Use a screening service that fits within the $20 cap — Several services offer basic credit and background checks within or near this price point
• Absorb the excess cost — Treat screening as a cost of doing business, which it is
• Ask the tenant to provide their own report — Tenants can obtain their own credit report (free annually from AnnualCreditReport.com) and present it to you. You cannot charge for this.

What You Cannot Charge

Prohibited Charge	Pre-HSTPA Practice	Current Status
Application fee above $20	$35-$100+ common	Prohibited
Separate credit check fee	$25-$50	Included in $20 max
Separate background check fee	$25-$75	Included in $20 max
“Administrative” fee	$50-$200	Prohibited
Holding fee or reservation fee	$200-$500	Prohibited if it functions as an additional deposit

Penalties

Charging more than $20 for an application exposes the landlord to liability for the overcharge amount plus potential damages. If a prospective tenant can demonstrate they were charged more than $20, they can seek recovery of the excess amount.

Overcharge Claims: The 6-Year Lookback

HSTPA expanded the lookback period for rent overcharge claims from 4 years to 6 years. This applies to all overcharges, including excessive security deposits, illegal fees, and above-guideline rent increases on stabilized units.

How Overcharge Claims Work

1. A tenant (current or former) files a complaint with HCR or commences a court action
2. The agency or court examines the rent history for the prior 6 years
3. If an overcharge is found, the landlord must refund the excess amount
4. If the overcharge is found to be willful, the landlord may owe treble damages (three times the overcharge)
5. Additionally, if there is evidence of fraud, the lookback can extend beyond 6 years to the full rent history

Exposure Calculation

Consider a landlord who collected a $3,000 security deposit (1.5 months) on a $2,000/month apartment for the past 4 years:

Component	Amount
Overcharge amount	$1,000 ($3,000 collected minus $2,000 maximum)
Simple recovery	$1,000
Treble damages (if willful)	$3,000
Plus attorney’s fees	$2,000-$10,000+
Total potential exposure	$5,000-$13,000+

For a landlord with multiple units and systematic overcharges, the exposure can be catastrophic.

Compliance Checklist

Use this checklist to verify your compliance with HSTPA’s deposit and fee requirements:

1. Security deposit: Verify that no tenant has paid more than one month’s rent as a security deposit. No pet deposits, key deposits, last month’s rent, or other additional deposits.
2. Interest-bearing account (6+ units): Confirm deposits are in a separate, interest-bearing account at a NY bank. Notify tenants of the bank name and account information.
3. Annual interest: Pay or credit tenant interest annually (minus 1% admin fee).
4. Return timeline: Return deposits within 14 days of move-out with an itemized statement.
5. Late fee provision: Update all leases to reflect the $50/5% cap (whichever is less) with a 5-day grace period.
6. Application fee: Verify you are charging no more than $20 total for applications, including all screening costs.
7. Move-in checklist: Document the condition of the unit at move-in (photos, written checklist) to support any future deductions from the deposit.
8. Lease language review: Remove any lease provisions that conflict with HSTPA (excessive deposits, compounding late fees, application fees above $20).

“The deposit and fee rules are the most commonly violated provisions of HSTPA, largely because landlords are using lease templates from before 2019. If your lease says ‘two months security’ or charges a $75 application fee, you are out of compliance right now. Update your leases immediately.”

— Rachid Abadli, Founder & CEO at LeaseBase

Frequently Asked Questions

Can I charge a pet deposit?

No. Under HSTPA, the maximum security deposit is one month’s rent, and no additional deposits of any kind are permitted. This includes pet deposits, pet fees, pet rent (if structured as a deposit), and any other charge that functions as a security deposit for pet-related damage.

Can I charge pet rent?

Pet rent (a monthly charge for having a pet) is a separate question from pet deposits. HSTPA prohibits additional deposits, but recurring monthly charges are governed by different rules. For rent-stabilized apartments, any charge must be part of the registered rent. For market-rate apartments, pet rent provisions in the lease may be enforceable, but this is an evolving area of law. Consult an attorney.

What if the tenant causes more damage than one month’s rent covers?

If the actual damage exceeds the deposit, you can retain the full deposit and pursue the tenant for the excess amount through small claims court or civil court. The one-month limit on the deposit does not limit your right to recover actual damages — it limits how much you can collect upfront.

Can I require renters insurance instead of a larger deposit?

You can require tenants to obtain renters insurance as a condition of the lease. This is not considered a deposit and is not subject to the one-month cap. Many landlords have adopted this approach as a way to shift some risk coverage to the tenant. However, renters insurance primarily covers the tenant’s property and liability, not damage to the landlord’s property (unless the policy includes specific landlord-benefit provisions).

What happens to existing deposits that exceed one month?

If you collected a deposit exceeding one month’s rent before HSTPA took effect, you should return the excess to the tenant. Holding an excessive deposit is a violation of current law, even if it was legal when collected. The tenant can demand the return of the excess amount at any time.

Can I charge a broker fee?

Broker fees in NYC are a separate and heavily litigated issue. The FARE Act (effective June 2025) generally shifts broker fees to the party who hired the broker. This is separate from HSTPA’s application fee cap. Broker fees are not deposits or application fees and are governed by their own rules.

How do I handle the deposit when rent increases?

The security deposit is based on the rent at the time of collection. If rent increases (e.g., through an RGB guideline increase on a stabilized unit), you cannot demand an additional deposit to match the new rent. The original one-month deposit stands for the duration of the tenancy.

Track Deposits and Fees Across Your Portfolio

For landlords with multiple units, tracking deposit amounts, interest payments, and move-out timelines can be complex. Missing the 14-day return deadline even once creates liability. Collecting even $1 over the $20 application fee cap creates an overcharge claim.

LeaseBase tracks security deposits, interest obligations, and fee compliance for every unit in your portfolio. You get alerts before move-out deadlines, automatic interest calculations for 6+ unit buildings, and compliant lease templates that reflect current HSTPA limits.

Related Reading

• HSTPA Changed Everything: What NY Landlords Lost in 2019
• MCI and IAI Caps After HSTPA
• NYC Rent Freeze 2026-27: What the 0% RGB Increase Means
• New York Good Cause Eviction Law: The Complete Guide
• Rent Stabilization vs Good Cause Eviction: Which Law Applies?
• Is Your NY Rental Exempt from Good Cause?
• Good Cause Eviction Opt-In Tracker

← New York Compliance Hub

The New Economics of Building Improvements

Before the Housing Stability and Tenant Protection Act of 2019 (HSTPA), Individual Apartment Improvements (IAIs) and Major Capital Improvements (MCIs) were the primary mechanisms for landlords of rent-stabilized buildings to increase rents and recover capital expenditures. Both were permanent, and both could be substantial.

HSTPA dramatically changed both programs. IAI increases are now temporary (15 years) and calculated at a fraction of their former rate. MCI increases are now temporary (30 years) and capped at a much lower annual percentage. Understanding these new rules is essential for any landlord planning renovations or capital improvements on rent-stabilized property.

Individual Apartment Improvements (IAIs): The New Rules

An IAI is a renovation or improvement made to an individual apartment, typically during a vacancy. Examples include kitchen renovations, bathroom remodels, new flooring, new windows (in the apartment), new appliances, and rewiring.

IAI Tier 1: The Standard Cap

Tier 1 is the default IAI program available for most vacancy renovations:

• Maximum spending: $30,000 over any rolling 15-year period per apartment
• Monthly rent increase: 1/168th of the total improvement cost (buildings with 35+ units) or 1/180th (buildings with fewer than 35 units)
• Duration: 15 years from the date the increase takes effect — then the IAI portion is removed from the legal rent
• Documentation required: Receipts, invoices, and proof of payment for all work performed

IAI Tier 2: The Enhanced Cap

Tier 2 provides a higher spending cap for specific situations:

• Maximum spending: $50,000 over any rolling 15-year period per apartment
• Eligibility: Available only when the prior tenant occupied the unit for 25 or more years, OR the vacancy occurred between June 14, 2022, and June 15, 2024
• Monthly rent increase: Same formula — 1/168th (35+ units) or 1/180th (under 35 units)
• Duration: 15 years

How to Calculate Your IAI Rent Increase

The formula is straightforward but the numbers are smaller than what landlords were accustomed to under the old system:

Renovation Cost	Building Size	Monthly Increase	Annual Increase	15-Year Total Recovery	ROI (%)
$10,000	35+ units (1/168th)	$59.52	$714.29	$10,714	107%
$10,000	Under 35 units (1/180th)	$55.56	$666.67	$10,000	100%
$15,000	35+ units	$89.29	$1,071.43	$16,071	107%
$15,000	Under 35 units	$83.33	$1,000.00	$15,000	100%
$25,000	35+ units	$148.81	$1,785.71	$26,786	107%
$25,000	Under 35 units	$138.89	$1,666.67	$25,000	100%
$30,000 (Tier 1 max)	35+ units	$178.57	$2,142.86	$32,143	107%
$30,000 (Tier 1 max)	Under 35 units	$166.67	$2,000.00	$30,000	100%
$50,000 (Tier 2 max)	35+ units	$297.62	$3,571.43	$53,571	107%
$50,000 (Tier 2 max)	Under 35 units	$277.78	$3,333.33	$50,000	100%

Comparison: Old System vs. New System

Let’s compare a $25,000 kitchen renovation under the old and new rules for a building with fewer than 35 units:

Feature	Before HSTPA (1/60th)	After HSTPA (1/180th)
Monthly rent increase	$416.67	$138.89
Annual rent increase	$5,000	$1,666.67
Duration	Permanent	15 years
Total recovery (15 years)	$75,000	$25,000
Total recovery (30 years)	$150,000	$25,000 (expires at year 15)

The difference is stark: under the old system, a $25,000 renovation generated $416.67/month permanently. Under the new system, it generates $138.89/month for 15 years, then drops off. The 30-year revenue from the same renovation dropped from $150,000 to $25,000.

Worked Example: Strategic IAI Planning

Given the new economics, landlords must be strategic about which improvements to make and how to allocate the $30,000 cap.

Scenario: Vacant 1-BR in a 20-Unit Building (Under 35 Units)

Current legal rent: $1,400/month. The apartment needs updating. You have $30,000 to spend over 15 years.

Improvement	Cost	Monthly Increase (1/180th)
Kitchen renovation (cabinets, counters, appliances)	$15,000	$83.33
Bathroom renovation (vanity, tile, fixtures)	$8,000	$44.44
New flooring throughout	$5,000	$27.78
New interior doors and hardware	$2,000	$11.11
Total	$30,000	$166.67

New legal rent: $1,400 + $166.67 = $1,566.67/month

After 15 years, the $166.67 IAI increase expires. However, RGB guideline increases applied over those 15 years to the total rent (including the IAI portion) will have partially compounded the benefit. The exact impact depends on future RGB orders.

Maximizing ROI Within the Cap

Given the cap, prioritize improvements that:

1. Reduce future maintenance costs — New plumbing, electrical, and HVAC improvements prevent expensive emergency repairs during the tenancy
2. Attract reliable long-term tenants — A well-renovated apartment attracts tenants who stay longer, reducing turnover costs
3. Address safety and code compliance — Lead paint abatement, window guards, smoke detectors, and ADA modifications are necessary regardless of IAI rules
4. Provide the highest cost-per-dollar impact — Kitchen and bathroom renovations have the highest tenant satisfaction impact per dollar spent

Major Capital Improvements (MCIs): The New Rules

MCIs are building-wide capital improvements that benefit all tenants. Unlike IAIs (which are apartment-specific), MCIs apply to the entire building and the cost is spread across all units. Examples include new roofs, boilers, elevators, plumbing risers, windows, facades, and electrical systems.

Post-HSTPA MCI Rules

• Application required: Landlords must apply to HCR (Homes and Community Renewal) for approval before collecting any MCI increase
• Annual cap: MCI increases are limited to 2% of the tenant’s rent per year (down from 6% pre-HSTPA)
• Duration: MCI increases expire after 30 years (previously permanent)
• Phase-in: Because the annual cap is 2%, the full MCI increase takes longer to phase in than under the old 6% cap
• Retroactive to filing date: Once approved, the MCI increase is retroactive to the date of the application filing

MCI Calculation Example

A 30-unit building replaces its boiler at a cost of $300,000.

Step	Calculation
Total improvement cost	$300,000
Monthly increase per unit (approximate)	$300,000 / 30 units / 108 months (for buildings under 35 units) = $92.59
Annual cap per tenant (at $1,500 rent)	2% x $1,500 x 12 = $360/year = $30/month
Phase-in period	$92.59 / $30 = ~3.1 years to fully phase in
Duration	30 years from full phase-in
Total recovery (30 years, all units)	$92.59/unit x 30 units x 12 months x 30 years = ~$999,972

Note: The actual MCI calculation is more complex than this simplified example. HCR uses a specific formula that accounts for building size, useful life of the improvement, and applicable regulations. The key takeaway is that the 2% annual cap significantly extends the phase-in period, and the 30-year expiration means the increase is not permanent.

MCI: Old System vs. New System

Feature	Before HSTPA	After HSTPA
Annual cap	6% of tenant’s rent	2% of tenant’s rent
Duration	Permanent	30 years
Phase-in speed	Faster (6% annual cap)	3x slower (2% annual cap)
Processing time	12-18 months typical	12-24 months (increased application volume)
Retroactive to	Filing date	Filing date (unchanged)

Strategic Considerations for Building Improvements

When IAIs Still Make Sense

Despite the reduced returns, IAIs remain worthwhile when:

• The apartment is in poor condition and cannot be rented at the current legal rent without renovation
• Long-term tenancy is expected — a 15-year IAI increase on a tenant who stays 10+ years generates significant cumulative revenue
• The renovation prevents costly future repairs — new plumbing and electrical prevent emergency service calls
• You are approaching the cap anyway — if you need to spend the money regardless, getting the IAI increase is better than not filing for it

When MCIs Still Make Sense

MCIs remain worthwhile when:

• The improvement is mandatory — a failed boiler, condemned elevator, or Local Law 11 facade work must be done regardless of the MCI recovery
• The building has high aggregate rents — the 2% cap is based on each tenant’s rent, so higher-rent buildings phase in faster
• Financing costs are manageable — if you can finance the improvement at a rate lower than the annualized MCI recovery, the improvement is self-funding

When Improvements May Not Make Financial Sense

The post-HSTPA economics mean that some discretionary improvements no longer generate a positive return:

• Luxury finishes that exceed the IAI cap without proportionally higher rent recovery
• Cosmetic MCIs (lobby renovations, common area upgrades) where the 30-year recovery at 2% per year does not cover the cost of financing
• Over-improvement of units in buildings where the stabilized rent is far below market — you cannot close the gap through IAIs alone

“The math has changed, but the need for capital investment has not. Buildings still need new roofs, boilers, and kitchens. The landlords who are succeeding post-HSTPA are the ones who plan improvements strategically — maximizing every dollar within the IAI cap and filing MCI applications promptly to capture the retroactive benefit.”

— Rachid Abadli, Founder & CEO at LeaseBase

Filing Your MCI Application

MCI applications are filed with HCR (Homes and Community Renewal). The process involves:

1. Complete the improvement — The work must be finished and in service before filing
2. Gather documentation — Contracts, invoices, proof of payment, permits, sign-offs from DOB (if applicable)
3. File the application — Submit to HCR with all supporting documentation
4. Tenant notification — All affected tenants are notified and given an opportunity to respond
5. HCR review — HCR reviews the application, may request additional documentation or conduct an inspection
6. Order issued — If approved, HCR issues an order specifying the rent increase per unit
7. Collection begins — The increase takes effect retroactive to the filing date, phased in at 2% per year per tenant

Timing tip: File your MCI application as soon as the improvement is complete. Because the increase is retroactive to the filing date, every month of delay is a month of lost retroactive recovery.

Tracking IAI and MCI Increases

With 15-year IAI expirations and 30-year MCI expirations, accurate tracking is essential. You need to know:

• When each IAI increase was added and when it will expire
• The current phase-in status of each MCI increase
• How much of your current legal rent is composed of IAI and MCI additions (vs. base rent and RGB increases)
• When MCI increases will expire and what the legal rent will be afterward

Manual tracking across dozens or hundreds of units is error-prone and creates overcharge liability. LeaseBase’s NYC Rent Stabilization Calculator tracks every component of your legal rent, including IAI and MCI additions, their effective dates, and their expiration dates. You always know exactly what your legal rent should be.

Frequently Asked Questions

Can I do IAIs on an occupied unit?

Yes, but only with the tenant’s written consent and only if the work does not require the tenant to vacate. In practice, most IAIs are done during vacancies because it is simpler and avoids disputes. If done during occupancy, the improvement must genuinely benefit the tenant (not just increase the rent).

What happens if I spend more than $30,000 on an IAI?

Only the first $30,000 (or $50,000 for Tier 2) counts toward the rent increase. Any spending above the cap does not generate additional rent recovery. The cap is cumulative over a rolling 15-year period, so prior IAI spending within the last 15 years counts against the current cap.

Can I combine IAI and MCI increases on the same unit?

Yes. IAI and MCI increases are separate programs with separate caps. A unit can have both an IAI increase (from apartment-specific improvements) and an MCI increase (from building-wide improvements) applied simultaneously.

What qualifies as an MCI?

The improvement must be building-wide (benefiting all or substantially all tenants), depreciable (a capital expenditure, not routine maintenance), and required for the operation, preservation, or maintenance of the building. Common MCIs include: boiler replacement, roof replacement, elevator modernization, window replacement, plumbing risers, electrical rewiring, and facade restoration.

How long does HCR take to process an MCI application?

Processing times vary but typically range from 12 to 24 months. Complex applications or those requiring additional documentation can take longer. The increase is retroactive to the filing date, so delays in processing do not result in lost revenue — but they do delay cash flow.

Can tenants challenge an IAI or MCI increase?

Yes. Tenants can file objections with HCR during the MCI application review process. For IAIs, tenants can file rent overcharge complaints if they believe the IAI increase was improperly calculated or if the documentation is inadequate. Maintaining thorough records is the best protection against challenges.

Plan Your Improvements With Precision

Post-HSTPA, every dollar spent on building improvements must be strategic. The old approach of spending freely and recovering costs through generous IAI formulas no longer works. You need to know your cap, plan your spending, and file promptly.

LeaseBase’s NYC Rent Stabilization Calculator helps you plan IAI spending within the $30,000/$50,000 caps, calculate the resulting rent increase, and track expiration dates. For MCIs, it tracks the 2% annual phase-in and 30-year expiration for every unit in your building.

Related Reading

• HSTPA Changed Everything: What NY Landlords Lost in 2019
• NYC Rent Freeze 2026-27: What the 0% RGB Increase Means
• New York Good Cause Eviction Law: The Complete Guide
• Rent Stabilization vs Good Cause Eviction: Which Law Applies?
• NYC Security Deposits, Late Fees, and Application Fees
• Good Cause Eviction Opt-In Tracker

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