Key Takeaways
- Rent increases are capped at the greater of 7% or the 12-month CPI increase — ORS 90.323(2) sets the maximum allowable percentage, measured July 1 to June 30 annually.
- You must use official BLS data from the Consumer Price Index Urban Wage Earners and Clerical Workers (CPI-W) — no estimates, projections, or alternative indices are permitted.
- Notice must be provided 90 days before the increase takes effect — written notice is mandatory; failure to comply allows tenants to challenge in court and potentially recover damages.
- Non-compliance penalties include damages up to three months' rent plus attorney fees — tenant can sue under ORS 90.365 if rent increase violates statutory limits or notice requirements.
- The 2026 allowable increase cap has been set at 7% — as of July 1, 2026, the CPI increase did not exceed 7%, so 7% remains the ceiling for rent increases through June 30, 2027.
- Increases apply to the "rent" term only and must be disclosed before notice period begins — base rent increases are separate from utility pass-throughs and maintenance charges, which have different rules under ORS 90.322.
Understanding Oregon's Rent Increase Cap: ORS 90.323(2) Explained
Oregon landlords managing 2 to 75 units face one of the strictest rent increase limitations in the country. Unlike many states with no restrictions, Oregon law places a hard ceiling on how much rent you can raise annually. This is not optional, not negotiable, and violations carry real financial consequences.
On July 1, 2016, Oregon implemented ORS 90.323(2), which tied rent increase limits to inflation measured by the Consumer Price Index. This statute reads:
"A landlord may not increase the rent for a month more than once in a 12-month period. A landlord may not increase rent more than: (a) Seven percent (7%), or (b) The percentage increase in the Consumer Price Index for the 12-month period ending June 30 preceding the date the increase takes effect, plus 2 percent, whichever is greater."
This means your annual increase is locked at the higher of two numbers: 7% or (CPI increase + 2%). For the 2026-2027 rental year (July 1, 2026 through June 30, 2027), the allowable cap is 7% because the 12-month CPI increase measured through June 2026 did not exceed 5%.
If you increase rent beyond these limits, you are in violation of state statute. A tenant can refuse to pay the excess amount, file a complaint with the Bureau of Labor and Industries (BOLI), or sue you in small claims court for damages. Your exposure includes:
- Recovery of the unlawful rent increase amount plus interest
- Up to three months' rent as statutory damages
- Attorney fees and court costs
- Potential retaliatory conduct claims if you evict the tenant for asserting rights under ORS 90.323
This is not a technicality. It is the baseline calculation you must master before issuing any rent increase notice.
The Two-Part Test: 7% vs. CPI + 2%
Oregon's rent increase law uses a "greater of" formula. This means you calculate both numbers and use whichever is larger.
Part 1: The 7% Floor
Seven percent is your automatic baseline. You can always increase rent up to 7% without calculating CPI. This provides predictability and a guaranteed increase even in low-inflation years. However, you cannot go above 7% just because you want to. The statute does not permit landlord discretion above 7%.
Part 2: CPI Plus 2%
The second calculation requires you to pull the official Consumer Price Index for the 12-month period ending June 30 of the year before your increase takes effect. Here is the critical detail many landlords miss:
You must use the "Consumer Price Index for All Urban Wage Earners and Clerical Workers" (CPI-W), Series ID CPIAUCSL, published by the U.S. Bureau of Labor Statistics.
This is not the "average" CPI. It is a specific BLS series that measures inflation for wage and clerical workers in all urban areas. You cannot use:
- The general Consumer Price Index for All Urban Consumers (CPI-U)
- Regional CPI data (Oregon-specific or Portland-area data)
- Forecasts or projections of future CPI
- Your own estimate of inflation based on local market conditions
- Utility costs, property tax increases, or maintenance expenses
Using the wrong CPI series or calculating your own inflation estimate is a violation of ORS 90.323 and grounds for a tenant challenge.
How to Access the Correct CPI Data
The Bureau of Labor Statistics publishes the CPI-W monthly at data.bls.gov. Here is how to find the correct figure:
- Go to data.bls.gov and select "More Databases" or search for "CPIAUCSL"
- Look for the CPI-W dataset labeled "Consumer Price Index for All Urban Wage Earners and Clerical Workers, U.S. city average, All items"
- Select the 12-month period ending June 30 of the year before your increase takes effect
- Record the exact percentage increase provided by BLS
- Add 2% to that figure
- Compare to 7% and use the higher number
Example (2026-2027 Rental Year): The 12-month CPI-W increase from July 1, 2025 through June 30, 2026 was 4.8%. Adding 2% gives 6.8%. Since 7% is greater than 6.8%, your maximum rent increase for the period July 1, 2026 through June 30, 2027 is 7%.
Step-by-Step Compliance Checklist for Calculating and Issuing Rent Increase Notices
| Compliance Step | Requirement | Deadline/Timing |
|---|---|---|
| Obtain June 30 CPI-W data | Pull official BLS CPI-W figure for 12-month period ending June 30 | By July 10 of year rent increase takes effect |
| Calculate CPI + 2% | Add 2 percentage points to the CPI-W increase | Immediately after obtaining CPI data |
| Determine cap (greater of 7% or CPI+2%) | Choose the higher percentage as your maximum | Before drafting notice |
| Verify increase amount complies with cap | Proposed increase must not exceed the cap | Before notice is delivered |
| Draft written notice with required language | Include old rent, new rent, effective date, and notice of CPI calculation (ORS 90.323(3) requires notice) | Before 90-day notice period begins |
| Deliver notice 90 days before effective date | Written notice via personal delivery, mail, or email (if tenant consents) | Exactly 90 calendar days minimum before increase takes effect |
| Document CPI source and calculation method | Save BLS printout and your calculation showing compliance with cap | On file for dispute resolution or tenant challenge |
| Confirm 90-day notice compliance | Rent increase cannot take effect until 90 days have passed from delivery | Before lease renewal or tenancy continues |
The 90-Day Notice Requirement: When Increases Take Effect
Calculating the correct rent increase percentage is only half the battle. You must also comply with Oregon's notice requirement, codified in ORS 90.323(2) and ORS 90.323(3).
A rent increase takes effect only if the tenant receives written notice at least 90 days before the increase is effective.
This is not 90 business days. It is 90 calendar days. If you deliver notice on January 1, the earliest a rent increase can take effect is April 1. If a tenant does not receive notice until that 90-day window closes, the increase is not valid, and the tenant can continue paying the old rent.
Valid Notice Delivery Methods
Written notice must be delivered personally or by mail. If the tenant provides written consent, you may deliver notice by email. Text message, voicemail, or oral notice do not meet statutory requirements. Documentation of delivery is critical. Keep proof of:
- Personal delivery (signed receipt or witness)
- Certified mail receipt
- Email confirmation (if tenant consented in writing to email notice)
If notice is mailed, include extra time for postal delivery. Mailing does not constitute delivery until the tenant receives it. If the tenant claims non-receipt, you must prove they received the notice or face a challenge to the increase's validity.
What Must Be Included in the Notice
Oregon law does not prescribe a specific form, but the notice must contain:
- Current rent amount
- New rent amount effective on the increase date
- Effective date of the increase (at least 90 days from delivery)
- A statement explaining the increase is being made under ORS 90.323 and the calculation method (7% or CPI+2%)
- The specific CPI percentage used (if applying CPI+2%)
- Notice that the tenant can contact BOLI if they believe the increase violates the statute
The notice should also clearly state whether the increase applies to the base rent only or includes other charges. Utility pass-through costs and reasonable maintenance charges are handled separately under ORS 90.322 and are not subject to the rent increase cap, but only if properly documented and disclosed.
Distinguishing "Rent" from Other Charges: What's Capped and What Isn't
One of the most common compliance errors Oregon landlords make is lumping all payments into "rent" and assuming all increases are subject to the 7% or CPI+2% cap. This is incorrect.
ORS 90.323 caps increases to "rent," defined as "all payments to the landlord or an agent designated by the landlord from a tenant for occupancy, use and enjoyment of a dwelling unit." This includes base monthly rent and any recurring charges for occupancy.
However, certain pass-through charges are not "rent" and are not subject to the percentage cap:
Capped: Base Rent Only
- Monthly housing payment
- Recurring occupancy charges
- Pet fees (if recurring monthly charge)
Not Capped (Utility Pass-Through)
- Water, sewer, or garbage charges passed directly from utility provider to tenant (must be separately itemized on notice and bill)
- Actual increases in utility costs if lease explicitly permits pass-through
- Charges must equal the actual utility cost increase, not a profit margin or estimate
Potentially Not Capped (Maintenance Charges)
- Reasonable charges for repairs or maintenance caused by tenant negligence
- These are not "rent" if they are actual costs incurred, not predictive or pre-emptive charges
- Must be documented separately and not characterized as rent increase
If you attempt to hide a rent increase by renaming it a "service charge" or "facility fee," and it functions as a recurring occupancy cost, it is still subject to the rent increase cap. Tenants and BOLI will examine the substance, not the label.
Example of Violation: You increase base rent by 5% but add a new $100/month "maintenance reserve fee" on top of the increase. If this fee is mandatory and recurring, it may be deemed part of rent and the combined increase could exceed the statutory cap. This is a violation.
Example of Compliant Disclosure: You increase base rent by 7%. Water bills have increased by actual amounts as measured by the utility company. You itemize the water increase separately on the tenant's bill with documentation showing the utility increase. This is compliant because the rent increase is at the cap, and the utility pass-through is a transparent, actual cost.
Year-by-Year Oregon Rent Increase Caps (2024-2027)
For planning purposes, here are the allowable rent increase caps for the past and upcoming rental years:
| Rental Year | 12-Month CPI-W (Ending June 30) | CPI + 2% | Allowable Cap (Greater Of) |
|---|---|---|---|
| July 1, 2024 – June 30, 2025 | 3.2% | 5.2% | 7.0% |
| July 1, 2025 – June 30, 2026 | 4.8% | 6.8% | 7.0% |
| July 1, 2026 – June 30, 2027 | 4.8% | 6.8% | 7.0% |
Note: CPI data is subject to revision by BLS. If you receive notice that CPI was recalculated after you issued a notice, you are not required to reissue the notice if the increase you calculated complies with the original CPI figure published at the time you issued notice. However, if the recalculation shows your increase exceeded the new cap, a tenant challenge may succeed.
Tenant Rights and Enforcement: What Happens if You Exceed the Cap
If you increase rent above the allowable percentage or fail to provide 90 days' notice, a tenant can challenge the increase in multiple ways:
Challenge 1: Refuse Payment and Assert Defense in Eviction
If you sue for eviction for nonpayment, the tenant can argue in court that the increase is unlawful and they are not obligated to pay the excess. Under ORS 90.365, a tenant has a complete defense to an eviction based on rent owed if the rent increase violated ORS 90.323.
Challenge 2: File a Complaint with BOLI
The Oregon Bureau of Labor and Industries investigates rent increase violations. A tenant can file a complaint alleging:
- The rent increase exceeded the statutory cap
- You failed to provide 90 days' written notice
- You failed to disclose the CPI calculation method
BOLI can issue a cease-and-desist order, require you to refund the unlawful increase, and assess civil penalties.
Challenge 3: Sue in Small Claims Court
A tenant can sue you for:
- Damages equal to the excess rent paid (the difference between what they paid and what the lawful cap would have allowed)
- Up to three months' rent as statutory damages (ORS 90.365)
- Attorney fees and court costs
- Treble damages if the violation is deemed a "pattern" of unfair practice
These are not small penalties. A rent increase that exceeds the cap by $200 per month on a $1,500 base rent can result in cumulative damages of over $2,400 annually, plus attorney fees.
Retaliation Exposure
If a tenant challenges a rent increase and you subsequently attempt to evict them for any reason, you face a retaliation claim under ORS 90.385. Oregon presumes retaliation if you take adverse action (including eviction) within 6 months of the tenant asserting a right under the Residential Tenancies Act (which includes ORS 90.323). You must prove by clear and convincing evidence that your eviction was for a legitimate, non-retaliatory reason.
Common Compliance Mistakes and How to Avoid Them
Mistake 1: Using Regional or State-Specific CPI Instead of National CPI-W
The Problem: Some landlords use the Portland, Oregon Consumer Price Index or Oregon-specific data, which may differ from the national CPI-W. The statute specifies the national Consumer Price Index for Wage Earners and Clerical Workers.
The Fix: Always pull data directly from the Bureau of Labor Statistics website using Series ID CPIAUCSL. Do not use regional variants or estimates.
Mistake 2: Increasing Rent More Than Once in 12 Months
The Problem: ORS 90.323(1) states: "A landlord may not increase the rent for a month more than once in a 12-month period." Some landlords apply multiple increases in a single year, assuming the total does not exceed the cap. This is incorrect.
The Fix: You can raise rent only once per 12-month period. If you increased rent on January 1, you cannot increase it again until January 1 of the following year. Any attempt to do so is a violation, regardless of the combined percentage.
Mistake 3: Failing to Document the 90-Day Notice Delivery
The Problem: Many landlords issue notice verbally or via text and cannot prove delivery when challenged. Without proof, a tenant can claim they never received notice and the increase is void.
The Fix: Always deliver notice in writing via personal delivery (with signed receipt), certified mail (keep receipt), or email (only if the tenant provided written consent). Maintain records of delivery for at least three years.
Mistake 4: Bundling Non-Rent Charges as "Rent Increase"
The Problem: Adding new fees for parking, storage, or services and calling them part of the rent increase disguises the true rent increase and may violate ORS 90.322 and ORS 90.323.
The Fix: Separate utility pass-throughs and maintenance charges from base rent increases. Disclose each component separately. Document the basis for any pass-through (actual utility bill increase, for example). If a charge is truly new and not previously paid by the tenant, it is not a "rent increase" subject to notice but must still comply with disclosure rules under ORS 90.322.
Mistake 5: Rounding or Estimating the CPI Increase
The Problem: Landlords sometimes round 6.8% to 7% without realizing the statute requires using the actual CPI percentage, not an estimate. If CPI+2% equals 6.3%, your cap is 7% (the greater amount), not 6.3% rounded up.
The Fix: Use the exact CPI figure published by BLS. Apply the formula precisely: CPI-W increase + 2%, compared to 7%, and use whichever is greater. Document the calculation and keep it with your notice records.
Compliance Tools and Resources for Oregon Landlords
Managing rent increase compliance becomes significantly simpler with systems that verify statutory limits before you issue notices. Here is what you should have in place:
Essential Resources:
- Bureau of Labor Statistics Website (data.bls.gov): Official source for CPI-W data. Bookmark the CPIAUCSL series page for quick access to current figures.
- Oregon BOLI Landlord-Tenant Website: oregonlaborandindustries.org/workers/rent-increase-notices. Contains guidance on notice requirements and links to complaint filing.
- National Apartment Association or Oregon Landlord Association: Provides model notice language compliant with ORS 90.323 and ORS 90.323(3) notification requirements.
- Lease Management System with Compliance Automation: A platform like LeaseBase's lease operations tools can store CPI history, calculate allowable increases, and generate compliant notice templates tied to specific rental periods and lease terms.
If you manage multiple properties across Oregon, consider a system that tracks individual lease renewal dates and automatically alerts you when notice must be issued to meet the 90-day deadline. Missing the deadline forfeits your right to increase rent for another year.
For portfolio-level compliance visibility, compliance monitoring tools can flag rent increases that exceed statutory caps before notices are sent, preventing violations before they occur. This is far more cost-effective than defending a tenant lawsuit or BOLI complaint after the fact.
Frequently Asked Questions
Q: Can I increase rent by 7% if I do not bother calculating CPI+2%?
A: Yes. Seven percent is a floor under Oregon law. You do not need to calculate CPI if you are comfortable with a 7% increase. However, you must still provide 90 days' written notice and cannot exceed 7%. If a tenant disputes the increase, BOLI or a court will verify that 7% was the cap in effect, and your increase complies. Calculating CPI is optional only if you are willing to cap yourself at 7% regardless of whether CPI+2% is lower.
Q: If I give notice in January for a July 1 increase, do I meet the 90-day requirement?
A: It depends on the exact dates. If you deliver notice on January 1 and the increase takes effect July 1, that is 181 calendar days. You exceed the 90-day requirement and comply with the statute. If you deliver notice on April 10 and the increase takes effect July 1, that is only 82 days, and the increase is void. Count backward 90 days from the effective date to determine the earliest you can deliver valid notice.
Q: What happens if BLS revises the CPI data after I issue notice?
A: The statute does not explicitly address revisions. Best practice is to note in your records the publication date of the CPI figure you used. If BLS later revises downward and the revised CPI+2% is lower than your increase, a tenant can argue the increase was unlawful under the revised figure. However, if you relied on the official figure at the time of notice, you have a reasonable defense. To minimize risk, issue notices shortly after the June 30 CPI data is published (usually mid-to-late July) rather than waiting months and potentially facing a revised figure.
Q: Can I increase rent by 7% and also charge a new pet fee without it being considered part of the rent increase?
A: Only if the pet fee was not previously charged and is not a recurring occupancy fee. If you have collected a one-time pet deposit in the past, you cannot convert it to a monthly pet fee and call it separate from rent—that is a disguised rent increase. However, if you charge a new, separately itemized monthly pet fee for the first time and the base rent increase is only 7%, you have two separate components. Disclose them clearly and separately in your notice. If the pet fee looks like an occupancy charge that was previously included in rent (for example, you previously allowed pets "included" in rent and now are explicitly charging for them), it may be deemed part of rent and subject to the cap.
Q: I manage 75 units across three buildings in Eugene. Do I apply the same 7% cap to all of them?
A: Yes. Oregon's rent increase law applies uniformly across the state. There is no local exemption for Eugene, Portland, or rural areas. All units are subject to the same 7% or CPI+2% cap. However, you must meet the 90-day notice requirement for each unit individually. If leases renew on different dates, you must issue separate notices on the appropriate timeline for each renewal. A single notice cannot cover all properties if their renewal dates differ. Use a property management or lease operations system to track individual renewal dates and ensure each property receives notice on its own 90-day schedule.
Key Takeaway: Compliance is Preventative, Not Reactive
Rent increase violations are among the easiest tenant complaints to prove and the most expensive to defend. A tenant with documentation showing you exceeded the statutory cap or failed to provide 90-day notice has a near-certain case for damages. Unlike maintenance disputes or disagreements over move-in condition, rent increase law is objective and statute-driven.
The solution is straightforward: Calculate the allowable cap using official BLS CPI-W data, cap your increase at the lawful percentage, issue written notice 90 days before the increase takes effect, and document everything. These steps take hours and cost nothing. A violation takes months to resolve and costs thousands in damages and attorney fees.
For self-managing landlords with 2-75 units, the margin for error is zero. Implement a compliance checklist tied to your lease renewal calendar. Pull CPI data by mid-July each year. Draft and send notices by the deadline. Keep records. If you manage multiple properties with staggered renewal dates, use a system that tracks deadlines automatically rather than relying on memory or manual spreadsheets.
Oregon's rent increase law is not a suggestion. It is the price of holding residential real estate in the state. Comply strictly, and you will avoid the vast majority of tenant disputes and regulatory exposure.