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Oregon Rent Increase Calculator & Compliance Guide — ORS 90.323 (2026)

Oregon Rent Increase Calculator & Compliance Guide — ORS 90.323 (2026) - landlord compliance guide

Key Takeaways

  • Oregon caps rent increases at the annual CPI percentage plus 7% — calculated using the U.S. Department of Labor’s Bureau of Labor Statistics (BLS) Consumer Price Index for the Portland-Salem-Eugene area under ORS 90.323(2).
  • You must provide 90 days’ written notice before the increase takes effect; failure to comply voids the increase and exposes you to tenant claims for damages.
  • 2026 allowable increase is 9.95% (based on June 2024–June 2025 CPI data of 2.95% + 7% cap), but verify the current CPI index before issuing notice.
  • Violations of ORS 90.323 are unfair trade practices — the Attorney General can seek civil penalties up to $20,000 per violation, plus restitution and attorneys’ fees.
  • New units and exemptions apply — rent control does not apply to newly constructed units during their first 15 years, or to federally subsidized housing.
  • You cannot waive tenant rights — any lease clause that attempts to override the statutory cap is void under ORS 90.245(1).

What Is Oregon’s Rent Increase Cap (ORS 90.323)?

Oregon’s rent control law—codified in ORS 90.323(2)—imposes a hard statutory ceiling on how much you can raise rent in a 12-month period. The law does not prohibit increases entirely. Rather, it ties the maximum allowable increase to a formula based on inflation and a fixed percentage buffer.

The formula is straightforward:

Annual CPI percentage (Portland-Salem-Eugene area) + 7% = Maximum allowable rent increase

This means even during high-inflation years, your increase is capped. Conversely, during low-inflation periods, you’re still allowed the 7% cushion. In 2026, with inflation running at 2.95% year-over-year (June 2024–June 2025 BLS data), the allowable increase is 9.95%.

The statute applies to all rental units in Oregon, except:

  • Newly constructed buildings (exempt for the first 15 years after completion)
  • Federally subsidized housing under Section 8 or similar programs
  • Manufactured dwelling parks (subject to separate rules under ORS 90.625–90.645)

If your unit or building falls into an exempt category, you can raise rent without limitation—but you must still comply with the 90-day notice requirement under ORS 90.322 if the unit is month-to-month or if the lease is expiring.

Understanding the CPI Data Source and How to Calculate Your Allowable Increase

The increase cap is pegged to the Consumer Price Index (CPI) published monthly by the U.S. Department of Labor, Bureau of Labor Statistics (BLS). Specifically, Oregon uses the CPI-U (Consumer Price Index for All Urban Consumers) for the Portland-Salem-Eugene area, Series ID CUUR49RTL0.

How the calculation works:

  1. Identify the comparison period. The increase takes effect on the anniversary of the tenancy or lease start date. To calculate the allowable percentage, use the 12-month CPI change ending in the month immediately prior to when you issue the rent increase notice.
  2. Locate the BLS data. Visit the BLS website (bls.gov) and search for “Portland-Salem-Eugene” CPI data. The monthly index is published around the 10th of each month for the prior month.
  3. Calculate year-over-year change. Divide the most recent CPI index by the same month’s index from one year prior, subtract 1, and multiply by 100 to get the percentage.
  4. Add 7% to the CPI percentage. This is your maximum allowable increase.
  5. Apply it to the current rent. Multiply the current monthly rent by the allowable percentage (as a decimal). That’s your maximum dollar increase.

Example (2026 scenario):

Current rent: $1,500/month
CPI increase (June 2024–June 2025): 2.95%
Statutory cap: 2.95% + 7% = 9.95%
Maximum dollar increase: $1,500 × 0.0995 = $149.25
New rent ceiling: $1,500 + $149.25 = $1,649.25/month

You can increase rent to any amount up to $1,649.25. You are not required to use the full allowable increase. However, you cannot exceed it under any circumstances—even if you claim the tenant is behind on maintenance costs or the market rate is higher.

The 90-Day Notice Requirement: Deadlines and Compliance

Issuing a rent increase is only half the battle. ORS 90.322(1) mandates that you provide written notice of the increase at least 90 days before it takes effect. This is a hard requirement; shorter notice periods are void, and the increase cannot be enforced.

Critical timing rules:

  • Count from the notice date, not the postmark date. If you mail notice on January 1st, the 90 days run from January 1st. The increase cannot take effect before April 1st.
  • The increase must align with the lease cycle or tenancy anniversary. You cannot impose an increase mid-lease or mid-month. It must coincide with the start of a new rental period (month-to-month renewal or lease expiration).
  • Hand delivery, certified mail, or email (with confirmed receipt) all count. Oregon does not require certified mail specifically, but you must prove delivery. Email is acceptable if the lease authorizes it.
  • Notice must be in writing. Oral statements or text messages do not satisfy the statute.

What happens if you fail to provide 90 days’ notice?

Under ORS 90.322(2), if you attempt to enforce an increase without proper notice, the tenant can refuse payment of the increase and the amount becomes an unlawful detention. If the tenant withholds the increase amount in escrow (in Oregon, a tenant can demand the increase be paid into a court registry pending notice compliance), you cannot evict for non-payment of the contested portion. This creates a stalled rent situation that can ultimately void your ability to collect the increase for months or years, depending on litigation timelines.

Calculating the CPI: 2026 Rates and Historical Reference

Since ORS 90.323 was passed in 2019, the allowable increase has varied significantly based on inflationary cycles. Below is a reference table showing the historical and current allowable rates:

Increase Year CPI % (12-mo change) Statutory Cap % Notes
2020 1.00% 8.00% First year of cap (effective Feb. 2020)
2021 4.70% 11.70% Post-pandemic recovery begins
2022 8.45% 15.45% Peak inflation year; many landlords hit the cap
2023 3.80% 10.80% Inflation cooling; cap still double-digit
2024 2.85% 9.85% Inflation moderating significantly
2025 2.95% 9.95% Current (June 2024–June 2025 baseline)
2026 TBD (est. 2.5–3.5%) Est. 9.5–10.5% Projected based on recent Fed policy; verify in Sept. 2026

Key insight: Even though inflation has cooled from 2022 peaks, the 7% statutory buffer means your allowable increase remains in the 9–10% range. This is significantly higher than pre-2020 increases, which often fell in the 2–4% range. Tenants remain sensitive to this; expect more scrutiny of your notices and rent calculation math.

What You Cannot Do: Prohibited Conduct Under ORS 90.323

The statute is clear about what is forbidden. Understanding these prohibitions helps you stay compliant and avoid costly disputes.

1. You Cannot Exceed the Statutory Cap, Period

No justification—rising property taxes, maintenance costs, insurance premiums, or market rates—overrides the cap. ORS 90.323(2) is a hard ceiling. If your mortgage or real estate taxes jumped 15%, you still cannot raise rent more than the allowable percentage. This is by design; Oregon law prioritizes tenant stability over landlord cost recovery.

2. You Cannot Impose Increases Without 90 Days’ Written Notice

Notice must be written, signed, and provably delivered. ORS 90.322(1) does not allow oral notice or short-notice increases under any circumstances. If you give 60 days’ notice, the increase is void for that period. The tenant can demand the excess back and claim damages for the unauthorized increase.

3. You Cannot Waive Tenant Rights in the Lease

ORS 90.245(1) states: “Any provision of a rental agreement is void if it is contrary to the provisions of this chapter.” This means a lease clause saying “tenant waives the right to challenge rent increases” or “tenant agrees to increases above the statutory cap” is unenforceable. Courts will strike it and enforce the statutory cap anyway.

4. You Cannot Increase Rent During a Fixed-Term Lease (Without Notice)

If the tenant is in the middle of a one-year lease at $1,500/month, you cannot raise the rent to $1,650 until the lease expires. However, you can serve notice 90 days before expiration so the new rate takes effect on the renewal date or when the next lease begins. Once the lease expires and you don’t renew, you must return to the notice requirement; you cannot “just charge” the higher rent when the tenant pays on the old terms.

5. You Cannot Increase Rent as Retaliation for Tenant Actions

ORS 90.385 prohibits retaliatory rent increases. If a tenant has complained about habitability, requested repairs, joined a tenant union, or exercised other statutory rights within the prior six months, a rent increase is presumed retaliatory. You must overcome this presumption by proving the increase was planned before the tenant’s protected action. Retaliatory increases expose you to tenant damages claims and, in some cases, lease termination rights for the tenant.

Enforcement and Penalties for Non-Compliance

Oregon’s Attorney General (Department of Justice) and local district attorneys actively enforce ORS 90.323 violations. The consequences are severe.

Civil Penalties

Under ORS 90.755(2), a violation of ORS 90.323 is an unfair trade practice under ORS Chapter 646. The Attorney General can seek:

  • Civil penalties up to $20,000 per violation (per ORS 646.638)
  • Restitution to affected tenants (the amount of the unlawful increase plus interest)
  • Attorneys’ fees and costs (often $5,000–$50,000+ in investigated cases)

A single unjustified rent increase to multiple units can constitute multiple violations, multiplying liability. If you increase rent for 10 tenants without proper notice or within the cap, you could face $200,000 in penalties plus restitution.

Private Tenant Claims

A tenant can sue you directly under ORS 90.322 or 90.323 without waiting for Attorney General action. Remedies include:

  • Offset of the unlawful increase against future rent payments
  • Damages for overpayment (sometimes including attorney fees under ORS 90.255)
  • Right to cure the notice defect, but no retroactive enforcement of the increase

Eviction Risk

If you attempt to evict a tenant for non-payment of a contested rent increase, the tenant can raise the increase violation as a defense. Oregon courts have dismissed evictions and found the rent increase void, leaving you with zero remedy and a costly court filing for nothing.

How to Issue a Compliant Rent Increase Notice

Here is a step-by-step checklist to ensure your increase clears legal review:

Step 1: Calculate the Allowable Percentage

  • Visit bls.gov and locate the Portland-Salem-Eugene CPI-U data (Series ID CUUR49RTL0).
  • Find the index for the month you will issue notice (e.g., if issuing in August 2026, use July 2026 data, which is published in early August).
  • Compare it to the index for the same month one year prior.
  • Calculate: (New Index ÷ Old Index – 1) × 100 = CPI percentage.
  • Add 7%. This is your maximum allowable percentage.
  • Do not round up; use the exact percentage.

Step 2: Verify the Unit Is Not Exempt

  • Is the unit in a building constructed within the last 15 years? If yes, it may be exempt (check completion date).
  • Is the unit subject to federal rent subsidy (Section 8)? If yes, it is exempt.
  • Is it a manufactured dwelling in a park? If yes, follow ORS 90.625–90.645 instead.
  • If none of these apply, the cap applies to your unit.

Step 3: Determine the Effective Date

  • The increase must take effect on a lease renewal date or tenancy anniversary, not mid-month or mid-lease.
  • For month-to-month tenants, it can take effect on the first day of any month, provided notice is given 90 days in advance.
  • Count 90 days from the date of notice, not postmark. If you deliver notice on January 1st, the earliest effective date is April 1st.

Step 4: Draft the Notice in Writing

The notice must include:

  • Current monthly rent amount
  • New monthly rent amount
  • Effective date of the increase
  • Statement that this is a rent increase notice under ORS 90.322
  • Your signature (or authorized agent)
  • The tenant’s name and property address

Sample Language:
“Notice of Rent Increase: The monthly rent for the property at [address] is increased from $[current] to $[new] effective [date]. This increase is provided pursuant to Oregon Revised Statutes 90.322 and complies with the rent increase cap under ORS 90.323(2). Tenant must vacate or accept the new rent by [date 90 days hence].”

Step 5: Deliver the Notice

  • Hand-deliver it in person (obtain signature for proof).
  • Send by certified mail, return receipt requested (keeps USPS as witness).
  • Email it if the lease allows email delivery; confirm the tenant opened it or request read receipt.
  • Do not rely on sliding it under the door without documentation.
  • Keep a copy signed and dated by you (or the delivery confirmation).

Step 6: Document and Retain Records

  • Save the CPI data you used (screenshot or print the BLS page with the calculation).
  • Keep the original notice and proof of delivery.
  • File these with the lease and tenant records for at least six years (statute of limitations for debt).
  • If audited or challenged, you must prove the increase did not exceed the cap and that notice was timely.

Exemptions and Special Cases

Newly Constructed Buildings (15-Year Exemption)

ORS 90.323(3) exempts rental units in buildings that were first occupied less than 15 years prior. If you construct a new apartment building in 2015, no unit is exempt after January 1, 2030 (15 years from first occupancy). Before that date, you can raise rent without the cap—but you must still provide the 90-day notice if the lease is month-to-month.

Practical note: “First occupied” means the earliest date any unit in the building was rented, not the date the whole building was completed. If you finished construction in phases, use the earliest lease commencement date.

Federally Subsidized Units

Units under Section 8 or other federal subsidy programs are exempt because federal rules control the rent calculation. However, the notice requirement still applies when the lease renewal occurs.

Mobile Home Parks (ORS 90.625–90.645)

Manufactured dwelling spaces in parks have separate, more stringent rules. Rent increases require 180 days’ notice (not 90) and must comply with different caps. Do not apply the ORS 90.323 formula to mobile home spaces; consult an attorney licensed in Oregon if you own a park.

Practical Compliance Tools and Record-Keeping

Managing rent increase compliance across multiple units requires discipline. Consider:

  • Annual CPI tracking spreadsheet: Create a simple sheet tracking the Portland-Salem-Eugene CPI index for the past 12 months, recalculated each month. When you’re ready to increase rent, the math is already done.
  • Lease anniversary calendar: Map out when each tenant’s lease renews or the anniversary of their tenancy. Flag the “90-day notice deadline” for each. This prevents accidental short-notice increases.
  • Notice template: Draft a compliant rent increase notice template and use it consistently. Have each notice reviewed by a local attorney once; reuse the language for subsequent notices.
  • Delivery log: Create a ledger showing the tenant name, notice date, effective date, old rent, new rent, and proof of delivery for every increase. This is your defense in a dispute.
  • Digital documentation: Photograph or scan the original notice and delivery confirmation. Store them in cloud storage with the tenant’s file, indexed by address and tenancy period.

A property management platform with compliance automation can track lease anniversaries, flag when CPI data updates, and generate pre-populated notices that prevent calculation errors. LeaseBase’s compliance engine includes CPI alerts for Oregon landlords, eliminating the manual tracking burden.

Retaliation and Timing Considerations

Even a perfectly compliant rent increase can be invalidated if it appears retaliatory. ORS 90.385 creates a six-month “protected period” after certain tenant actions:

  • Complaint about habitability or repairs
  • Request for maintenance or code compliance
  • Tenant union activity or organizing
  • Exercising legal remedies (small claims, demand letters)
  • Complaint to local housing or code enforcement

If a tenant requests repairs on August 1st and you serve a rent increase notice on September 15th (within six months), a court will presume the increase is retaliatory. You then must prove you made the decision to increase rent before the complaint occurred. This requires documentary evidence: emails to your accountant, board meeting minutes, prior tenant communications showing you telegraphed the increase, etc.

To avoid retaliation claims, implement increases on a fixed schedule (e.g., always January 1st for all units), announced months in advance, and applied uniformly across all units. This demonstrates business logic, not retaliation against individuals.

What Happens If a Tenant Refuses the Increase

If you serve a compliant notice and the tenant continues paying the old rent amount, you have options:

  • Accept the reduced amount and file a claim later. You cannot evict for non-payment if the dispute involves whether the increase itself was legal.
  • Demand the tenant accept the new terms or vacate. You can serve notice to terminate the tenancy, but you must follow ORS 90.427 (60 days’ notice for month-to-month, or wait for lease expiration). You cannot evict without this period.
  • Pursue a small claims judgment (if the unpaid increase is under the court’s jurisdiction) for the difference, but the tenant can still defend based on the increase’s legality, and you risk attorney fees if you lose.
  • Seek legal counsel. Disputes over increase validity are common; an Oregon attorney can review the tenant’s objections and advise whether the increase is defensible or should be withdrawn.

The key point: you cannot lock the tenant out, refuse to make repairs, or take adverse action to coerce acceptance. These actions invite retaliation counterclaims.

FAQ: Rent Increase Compliance Questions

Q1: Does the 7% buffer apply even if inflation is negative?

A: Technically, yes. ORS 90.323(2) says the cap is the CPI percentage plus 7%. If deflation occurred (CPI = –2%), the cap would be 5% (–2% + 7%). In modern times, deflation is rare, but the statute’s language is clear: the floor is the arithmetic result, not a minimum percentage.

Q2: Can I increase rent twice in one year (once mid-lease, once at renewal)?

A: No. ORS 90.322(1) restricts increases to once per year, tied to the anniversary of the tenancy or lease term. You cannot issue two notices in a 12-month period for the same unit, even if the lease renews. The increase percentage cap applies to each 12-month period, not per increase event.

Q3: If I own units in two different Oregon cities, do I use different CPI indices?

A: The statute specifies the Portland-Salem-Eugene CPI index for all of Oregon. Regardless of where your unit is located (Eugene, Salem, Portland, Bend, southern Oregon), you use the same index. There is no city-specific variance in Oregon’s law. However, if you own units in multiple states, each state’s CPI data applies only to units in that state.

Q4: What if the BLS doesn’t publish data for a month (e.g., government shutdown)?

A: The statute references “the preceding calendar year” for the calculation, and the BLS publishes monthly data regularly. If there is a significant delay, use the most recent available data and document the reason for the delay. Oregon courts have not definitively ruled on this edge case, but conservative practice is to use the most recent official BLS publication and note the date in your notice. An attorney can advise on the specific situation.

Q5: Can I increase rent for an exempt unit (newly constructed) without notice?

A: No. While exempt units are not subject to the ORS 90.323 cap, they are still subject to the 90-day notice requirement under ORS 90.322(1). You must provide written notice 90 days in advance, even though the increase amount is not capped. Failure to do so exposes you to the same remedies (void increase, tenant offset, damages) as a non-compliant increase for a non-exempt unit.

Key Compliance Checklist: Before You Issue a Rent Increase Notice

Complete all items before mailing or delivering the notice:

☐ Verify the unit is not exempt (constructed after 2009, not federally subsidized)
☐ Confirm no tenant habitability complaint, repair request, or protected action occurred in the past six months
☐ Pull the most recent Portland-Salem-Eugene CPI-U data from bls.gov
☐ Calculate the year-over-year percentage change and add 7%
☐ Determine the effective date (must be 90+ days from notice date and align with lease/tenancy anniversary)
☐ Calculate the new rent amount (do not exceed current rent × allowable percentage)
☐ Draft the written notice in your template
☐ Have a local attorney or paralegal review the notice (one-time review investment pays for itself in avoided disputes)
☐ Choose the delivery method (hand delivery preferred; certified mail second; email only if lease allows)
☐ Print or photograph the BLS data page you used for the calculation
☐ Deliver the notice and retain the original plus proof of delivery
☐ File the notice, proof of delivery, and CPI documentation in the tenant’s lease file
☐ Schedule a follow-up reminder: confirm the tenant accepted the new rent on the effective date, or plan your next step if they refused

2026 Compliance Outlook and Anticipated Changes

As of August 2026, the rent increase cap remains at 9.95% (based on 2.95% CPI + 7%). The Oregon Legislature has not changed ORS 90.323 since its enactment in 2019, and no repeal or major amendment is expected in the near term.

What could change:

  • Inflation resurgence: If CPI spikes above 5%, your allowable increase could reach 12–15%, but this would require significant macroeconomic shifts.
  • Legislative tightening: Tenant advocacy groups have proposed lowering the 7% buffer or eliminating it entirely (e.g., cap at pure CPI, no buffer). These proposals have not passed yet, but monitor Oregon Legislature bills each session (February–June).
  • Retroactive liability: Some jurisdictions have imposed retroactive rent overcharge liability. Oregon has not done this, but if a future law imposes it, all prior increases above a new lower cap could become enforceable claims. Keep meticulous records in case this occurs.

Stay informed by subscribing to Oregon’s Secretary of State business updates and checking the Attorney General’s website annually for enforcement actions related to rent control.

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