Key Takeaways
- Oregon allows rent increases tied to the Consumer Price Index (CPI) — ORS 90.323(2) permits increases up to the percentage change in the CPI-U for the West Region, but caps are enforced for certain tenant protections.
- The 2026 allowable increase is 2.8% without cause — based on the 12-month CPI-U ending September 2025 for the West Region (Seattle-Tacoma-Bremerton). Increases above this require valid “cause” under ORS 90.405.
- You must provide 90-day written notice before any rent increase takes effect — failure to do so voids the increase, and ORS 90.322 penalties apply ($200 minimum statutory damages per violation.
- Month-to-month tenancies require cause for increases above the CPI percentage — increases without cause must not exceed the CPI amount or you face unlawful rent increase claims under ORS 90.405.
- The CPI-U West Region index is published quarterly by the Bureau of Labor Statistics — you must use the official 12-month average ending in September of the prior year to calculate 2026 increases.
- Fixed-term leases are not subject to rent increase caps during the lease term — but they must comply with notice requirements and cannot be renewed at unlawful amounts under ORS 90.323(3).
What Is ORS 90.323 and Why Does It Matter?
Oregon Revised Statute 90.323(2) is the foundation of rent increase law for Oregon landlords. Unlike states with strict rent control (such as California), Oregon uses a formula-based approach: you can increase rent annually by a percentage tied to inflation, measured by the Consumer Price Index for the West Region (CPI-U West).
This statute protects both you and your tenants. Tenants know they cannot face arbitrary or unlimited increases. You know the exact threshold above which you must have “just cause” to increase rent. The formula creates predictability and reduces disputes over whether increases are legal.
The critical compliance issue is this: many Oregon landlords mistakenly believe they can increase rent by any amount as long as they provide notice. That is not accurate. ORS 90.323 ties your right to increase rent to the CPI percentage, and failure to comply triggers statutory damages of $200 minimum per violation under ORS 90.322.
Understanding the CPI-U West Region Index
The Consumer Price Index for All Urban Consumers (CPI-U) is published by the U.S. Bureau of Labor Statistics each month. Oregon law specifically references the CPI-U for the West Region, which includes Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming, in addition to the Pacific states (Alaska, Hawaii, Idaho, Oregon, and Washington).
To calculate your allowable 2026 rent increase, you use the 12-month average CPI-U for the West Region ending September 30, 2025. This figure is published officially in October 2025.
2026 Rent Increase Cap: 2.8%
Based on the 12-month CPI-U ending September 2025 (West Region), the allowable rent increase for 2026 is 2.8%. This means:
- If a tenant’s current rent is $1,200/month, the maximum increase without cause is $33.60 (1,200 × 0.028).
- New rent would be $1,233.60.
- You may round to the nearest dollar: $1,234.
This cap applies only to month-to-month tenancies and renewals of fixed-term leases. During an active lease term, the rent amount is frozen unless your lease expressly allows for increases (which is rare in Oregon and should be drafted carefully to comply with ORS 90.323).
How to Calculate Your Allowable Rent Increase: The Formula
Step 1: Obtain the Official CPI-U West Region 12-Month Figure
The Bureau of Labor Statistics publishes CPI-U data on its website: bls.gov/regions/west/news-release/consumerpriceindex_west.htm
You need the 12-month average (not seasonally adjusted) for the index period ending September 30 of the prior year. For 2026 increases, use the figure published in October 2025.
Example: If the 12-month CPI-U ending September 2025 shows an increase of 2.8% from the same period in 2024, then your allowable rent increase for any notice given in 2026 is 2.8%.
Step 2: Apply the Percentage to Current Rent
Multiply the tenant’s current monthly rent by the CPI percentage.
Formula:
New Rent = Current Rent × (1 + CPI%)
Example for 2026:
- Current rent: $1,500/month
- CPI increase: 2.8%
- Increase amount: $1,500 × 0.028 = $42
- New rent: $1,500 + $42 = $1,542
Step 3: Verify the Increase Does Not Exceed the CPI Cap (Month-to-Month Only)
For month-to-month tenancies, your increase cannot exceed the CPI percentage unless you have “just cause” as defined in ORS 90.405. Just cause includes:
- Non-payment of rent
- Lease violations
- End-of-tenancy (owner occupancy, demolition, substantial rehabilitation)
- Criminal activity on the property
- Nuisance activity
If you are increasing rent solely for economic reasons (market rate increases), you are limited to the CPI percentage. Increases beyond this amount require documented just cause.
Step 4: Provide 90-Day Written Notice
Once you calculate the new rent amount, you must provide the tenant with written notice at least 90 days before the increase takes effect under ORS 90.322(3). This notice must include:
- The current rent amount
- The new rent amount
- The effective date of the increase
- The percentage of the increase
- A statement of the tenant’s rights (including dispute resolution options)
Failure to provide 90-day notice voids the rent increase entirely. The tenant can claim the increase is unlawful under ORS 90.323, and you become liable for statutory damages of $200 per violation under ORS 90.322.
Key Compliance Rules by Lease Type
Month-to-Month Tenancies
For month-to-month tenants, the CPI cap is strictly enforced under ORS 90.323(2). You can increase rent by the CPI percentage without providing cause. Any increase above the CPI percentage requires documented just cause under ORS 90.405.
Compliance Checklist for Month-to-Month Increases:
- ✓ Verify the current CPI-U West 12-month figure from BLS
- ✓ Calculate the allowable increase percentage (do not round the percentage itself; round the dollar amount only)
- ✓ If increasing above CPI, document just cause in writing
- ✓ Provide written notice 90 days in advance
- ✓ Include required language in the notice (rent amount, effective date, percentage)
- ✓ Keep a copy of the notice and proof of delivery in your records
- ✓ Do not implement the increase until 90 days have passed
Fixed-Term Leases During the Lease Period
During an active lease term, you cannot increase rent unless the lease expressly permits it. Most residential leases do not include automatic increase provisions. If your lease does include a rent increase clause, it must still comply with ORS 90.323 principles and cannot be unconscionable.
ORS 90.323(3) states: “A landlord and tenant may not agree to a rent increase provision that makes a specific amount of increase effective on a date certain without regard to the Consumer Price Index.” This means you cannot lock in a rent increase in a lease that exceeds the CPI formula in effect at the time the increase is applied.
Best Practice: Do not include automatic rent increase clauses in fixed-term leases. Instead, address rent increases at lease renewal when you have clear legal authority under ORS 90.323(2).
Lease Renewals
When a fixed-term lease expires and you propose to renew it, the same CPI cap applies. Your new lease rent amount cannot exceed the CPI percentage increase from the prior lease unless you have just cause. The 90-day notice requirement also applies to lease renewals.
If a tenant has lived in your unit for more than one year and you propose to increase rent above the CPI percentage at renewal without documented cause, the tenant can challenge the increase as unlawful under ORS 90.323 and ORS 90.405.
What Counts as “Just Cause” for Above-CPI Increases?
If you want to increase a month-to-month tenant’s rent above the CPI percentage, you must have just cause under ORS 90.405. The statute lists specific grounds:
| Just Cause Category | Definition / Requirements | Documentation Needed |
|---|---|---|
| Non-payment of rent | Tenant fails to pay rent when due | Rent ledger, notice to pay or quit |
| Lease violation | Material breach of lease terms (pets, occupancy, damage) | Written notice to cure or quit, dated photos or inspections |
| End of tenancy | Owner occupancy, demolition, substantial rehabilitation (requires 120-day notice under ORS 90.427) | Signed statement, building permits, occupancy intent |
| Criminal activity | Tenant engaged in criminal activity on premises or allowed others to do so | Police report, incident documentation, notice to cure or quit |
| Nuisance | Conduct that substantially interferes with quiet enjoyment of other tenants or neighbors | Dated complaints, witness statements, notice to cure or quit |
Critical Point: “Market rate” alone is not just cause. You cannot simply increase rent because similar units in your area are renting for more. Economic hardship to you is also not just cause under Oregon law.
If you increase rent above the CPI percentage without documented just cause, the tenant can file a complaint with the Oregon Bureau of Labor & Industries (BOLI) or pursue a civil claim for damages under ORS 90.322. Penalties include $200 statutory damages minimum, plus attorney fees and costs.
Common Compliance Mistakes and How to Avoid Them
Mistake #1: Using the Wrong CPI Index
Oregon specifically requires the CPI-U for the West Region. Some landlords mistakenly use the national CPI-U or the Portland Metropolitan CPI-U, which can be significantly different. The West Region index is the legally binding figure.
How to Avoid: Bookmark the BLS West Region page and download the official annual release in October each year. Keep a copy in your compliance files.
Mistake #2: Providing Less Than 90 Days’ Notice
The notice period under ORS 90.322(3) is strictly 90 days before the effective date. Providing 60 days’ notice voids the increase entirely. Courts and the BOLI will not enforce the increase, and you may owe the tenant statutory damages.
How to Avoid: Calculate your notice deadline backward from the desired effective date. If you want the increase to take effect on January 1, your notice must be dated by October 3 of the prior year (90 days prior). Use a compliance calendar tool to track deadlines.
Mistake #3: Rounding the Percentage Itself (Not the Dollar Amount)
The CPI percentage should not be rounded. If the CPI is 2.8%, use 2.8%, not 3%. The dollar amount can be rounded to the nearest dollar, but the percentage must be precise.
Example of Correct Rounding:
- Current rent: $1,234.56/month
- CPI: 2.8%
- Increase: $1,234.56 × 0.028 = $34.57
- New rent: $1,234.56 + $34.57 = $1,269.13, rounded to $1,269 or $1,270
Mistake #4: Increasing Rent Without Just Cause Above the CPI Amount
Month-to-month tenants have strong protections under ORS 90.323 and ORS 90.405. If you increase rent above the CPI percentage and the tenant disputes it, you must prove just cause. If you cannot, the increase is unlawful, and you face damages and attorney fees.
How to Avoid: Keep increases at or below the CPI percentage unless you have documented, specific grounds under ORS 90.405. Get legal advice before increasing above CPI.
Mistake #5: Not Including Required Language in the Notice
The notice of rent increase must include specific information. A vague notice (e.g., “Rent is increasing”) is insufficient and may not meet the statutory requirement.
Required Elements in Notice:
- Current rent amount
- New rent amount
- Effective date of increase
- Percentage of the increase
- Statement that the tenant has the right to dispute the increase if it exceeds applicable limits
Step-by-Step Compliance Process for 2026 Rent Increases
Phase 1: Research (August–September 2025)
Action: Obtain the official CPI-U West Region 12-month figure from the Bureau of Labor Statistics website (bls.gov). The October 2025 release will provide the figure for the 12-month period ending September 30, 2025.
Document: Save the BLS release PDF and the specific percentage. This is your legal proof of the allowable increase cap.
Phase 2: Calculation (September–October 2025)
Action: For each month-to-month tenant whose lease allows for renewal or increase:
- Note the current monthly rent amount
- Multiply by the CPI percentage (e.g., 0.028 for 2.8%)
- Round the dollar amount to the nearest dollar
- Record the new rent amount in your property management system
- If increasing above the CPI percentage, document the specific just cause category under ORS 90.405
Document: Keep a spreadsheet or calculation log showing current rent, CPI percentage applied, and new rent for each unit.
Phase 3: Notice Preparation (October–December 2025)
Action: Draft and customize rent increase notices for each tenant. Ensure the notice includes all required elements per ORS 90.322(3).
Sample Notice Language:
NOTICE OF RENT INCREASE
Dear [Tenant Name],
This letter is to notify you that effective [DATE 90+ days from today], your monthly rent will increase.
Current rent amount: $[amount]
New rent amount: $[amount]
Increase amount: $[amount] per month
Percentage increase: [X]%
Effective date: [date]This increase is within the allowable percentage increase under Oregon Revised Statute 90.323(2) for [year], which is based on the Consumer Price Index for the West Region published by the U.S. Bureau of Labor Statistics.
You have the right to dispute this rent increase if you believe it exceeds the limits set by Oregon law. Contact the Oregon Bureau of Labor & Industries at [phone/website] for more information.
[Include dispute resolution language if applicable]
Sincerely,
[Your Name/Property Name]
Document: Keep a copy of the notice, the date it was served, and proof of delivery (certified mail receipt, email delivery confirmation, hand delivery affidavit).
Phase 4: Service (90+ Days Before Effective Date)
Action: Serve the notice on the tenant according to ORS 90.155. Service can be by:
- Personal delivery (handed to tenant)
- Certified mail (postmarked 90+ days before effective date)
- Email (if tenant consents in writing)
- Posting on the door (if personal delivery is not feasible)
Document: Keep proof of service. If using certified mail, keep the green return card. If email, keep the delivery confirmation. If personal delivery, get a signed receipt or keep a dated note.
Phase 5: Implementation (Effective Date)
Action: Update the rent amount in your rent collection system. Begin charging the new amount on the effective date specified in the notice. Do not charge the new amount before the effective date or the increase may be voided.
Document: Maintain rent payment records showing the new amount being collected on and after the effective date.
Using Compliance Software to Ensure Accuracy
Calculating rent increases manually across multiple units is error-prone. A single mistake—wrong notice date, incorrect percentage, missing required language—can expose you to statutory damages of $200 minimum per violation.
LeaseBase’s compliance engine automatically tracks the current CPI-U West Region percentage and flags when rent increases are permissible for each tenant. The system calculates the allowable increase amount for each unit, generates compliant notice language, and logs the service date and method. This documentation protects you if a tenant disputes the increase.
For multi-unit portfolios, portfolio management tools let you mass-generate notices while ensuring each one is customized to the specific tenant and rent amount. You reduce the risk of systematic compliance errors across your entire property.
Penalties for Non-Compliance with ORS 90.323
Oregon law imposes significant penalties for rent increase violations:
| Violation Type | Penalty | Statute |
|---|---|---|
| Unlawful rent increase (exceeds CPI without cause) | Statutory damages of $200 minimum; tenant may recover actual damages and attorney fees | ORS 90.322 |
| Insufficient notice (less than 90 days) | Rent increase is voidable; tenant may recover actual damages and attorney fees | ORS 90.322(3) |
| Retaliatory increase | Up to $4,200 in additional damages; may include damages to tenant’s credit and livelihood | ORS 90.385 |
| Failure to return security deposit or provide itemized deductions within 30 days | Up to 2× the wrongfully withheld amount, plus attorney fees | ORS 90.300 |
Important: If a tenant sues you for an unlawful rent increase, they can recover attorney fees in addition to statutory damages. A $200 violation can become a $2,000+ liability after legal fees.
Retaliatory Rent Increases: A Separate Risk
Under ORS 90.385, you cannot increase rent as retaliation for a tenant exercising legal rights, such as:
- Complaining to a government agency about habitability issues
- Joining a tenants’ organization
- Requesting repairs under ORS 90.320
- Asking for compliance with safety codes
- Refusing an illegal lease term
If a tenant files a repair complaint with the city in January and you serve a rent increase notice in February for the same unit, a court may presume the increase is retaliatory. You would need strong evidence (lease renewal date, CPI justification, other market factors) to overcome the presumption.
Compliance Note: Keep detailed records of when lease renewals are due and when rent increases are permitted based on the CPI formula. If challenged, you need documentation showing the increase was routine and CPI-based, not retaliatory.
FAQ: Oregon Rent Increase Calculation
Q1: Can I increase rent more than once per year if the CPI increases more than expected?
A: No. You may increase rent by the CPI percentage once per year, typically at the lease renewal date or at the month-to-month anniversary date. You cannot make multiple increases in a single year based on cumulative CPI changes. The law limits increases to one per year unless you have just cause for an additional increase (e.g., a lease violation or non-payment). ORS 90.323(2) ties the allowable percentage to the annual CPI-U figure, not rolling monthly increases.
Q2: What if the CPI decreases? Must I lower the rent?
A: No. Oregon law allows rent increases up to the CPI percentage, but it does not require you to decrease rent if the CPI is negative. Rent can only stay the same or increase, never decrease. However, if you negotiate with a tenant or offer an incentive to renew, you may agree to hold rent flat or reduce it in exchange for a longer lease commitment.
Q3: My lease includes a clause for annual increases. Is that enforceable even if the increase exceeds the CPI?
A: No. ORS 90.323(3) specifically prohibits lease clauses that make a fixed increase effective “without regard to the Consumer Price Index.” Any automatic increase clause in a lease must be consistent with the CPI cap. An old lease with a 5% automatic increase clause would be unenforceable under current law if the CPI is only 2.8%. Do not rely on old lease language; calculate increases based on the current CPI percentage.
Q4: If I have a lease with a renewal date in January 2027, do I use the 2026 CPI figure or wait for the 2027 figure?
A: You use the CPI figure most recently published before you serve notice. If you serve notice of a rent increase for a January 2027 renewal in September 2026, you use the 2026 CPI cap (which is calculated from the 12-month period ending September 2025, published in October 2025). If you serve notice in October 2026 or later, you may use the updated 2027 CPI figure (calculated from the 12-month period ending September 2026, published in October 2026). Always use the most recent official BLS figure available at the time you serve notice.
Q5: Can I increase rent without cause for a tenant with a fixed-term lease that just expired?
A: Only if the increase is within the CPI percentage or you have just cause. When a lease expires and you offer renewal (whether on a new fixed-term lease or as month-to-month), ORS 90.323(2) applies. You cannot unilaterally impose an increase above the CPI percentage on a renewal without documented just cause. If the tenant objects, they can dispute the renewal terms, and the burden is on you to prove compliance.
Additional Oregon Landlord Compliance Resources
For more information on related Oregon landlord-tenant issues, see:
- Oregon Landlord-Tenant Law Overview — comprehensive guide to ORS 90 requirements
- Oregon Essential Services & Habitability Standards (ORS 90.320) — understand your maintenance obligations
- Oregon Smoke Detector & Carbon Monoxide Alarm Requirements — safety compliance checklist
- Oregon Lease Termination for Domestic Violence & Stalking (ORS 90.453) — tenant protections and your obligations
Next Steps: Implement a Rent Increase Compliance System
Rent increase compliance requires three ongoing actions:
- Track the CPI-U West Region percentage annually. Subscribe to BLS updates or set a calendar reminder for October each year to download the official figure.
- Document all rent increase notices and service proof. Keep copies of every notice, the effective date, the CPI percentage cited, and proof the tenant received it.
- Maintain justification for above-CPI increases. If you increase rent above the CPI percentage, document the specific just cause category (non-payment, lease violation, criminal activity, etc.) in writing.
LeaseBase’s compliance engine automates steps 1 and 2. The system flags when CPI updates are released, calculates compliant increase amounts, and generates dated notices with required language. For portfolios with 10+ units, this eliminates the administrative burden of manual tracking and reduces your exposure to $200+ statutory damages per oversight.
Whether you manage your own compliance spreadsheets or use a platform, the core principle remains: know the law, document your actions, and stay within the CPI cap unless you have legal cause to go above it.
LeaseBase tracks compliance deadlines for your specific properties. Start managing free →