Key Takeaways
- Oregon caps rent increases at the annual BLS Consumer Price Index percentage — ORS 90.323(2) ties the maximum allowable increase directly to the U.S. Bureau of Labor Statistics West region CPI-U data, effective January 1 each year.
- 2026 Oregon rent increase limit is 2.8% — based on the December 2024 BLS data published in January 2025, this is the maximum legal increase you may impose for the 2026 calendar year.
- 90-day written notice is mandatory — ORS 90.323(4) requires landlords to provide notice in writing at least 90 days before the rent increase takes effect, or the increase is not enforceable.
- Violations carry attorney fees and treble damages — ORS 90.385 holds landlords liable for actual damages plus attorneys' fees if a tenant successfully challenges an improper increase, plus potential triple damages under retaliation provisions.
- The increase applies only to month-to-month tenancies after 12 months — fixed-term leases are exempt; increases only apply after the first 12 months of tenancy or when a new lease term begins.
- Notice must specify the new rent amount and effective date — vague or ambiguous notice can be challenged and may render the increase unenforceable.
Understanding ORS 90.323: Oregon's Rent Increase Cap
Oregon stands among a small number of states that impose statewide rent control limits. Since 2017, ORS 90.323 has capped the annual rent increase percentage to match inflation as measured by the U.S. Bureau of Labor Statistics Consumer Price Index for All Urban Consumers (CPI-U) for the Portland-Salem-Vancouver region (West Urban Consumers). This is not negotiable, not variable by lease language, and not subject to local override.
Unlike California's statewide rent increase cap (which increased to 5% plus inflation), Oregon's approach ties directly to actual inflation data. This means the cap changes every year based on real economic conditions. For 2026, that limit is 2.8%. In 2025, it was 2.2%. In a high-inflation year like 2022, the limit reached 9.2%. In 2020, it was 1.8%.
If you manage rental units in Oregon, ORS 90.323 applies to you—regardless of whether you manage 2 units or 75. There is no exemption based on property age, owner-occupancy status, or unit count. The statute applies uniformly to residential tenancies statewide, with one critical carve-out: fixed-term leases are exempt from the cap during the lease term. Once the lease ends, the cap applies if the tenancy continues.
How to Calculate Your Maximum Allowable Rent Increase
Step 1: Identify the Correct CPI Figure
The operative CPI figure is published by the U.S. Bureau of Labor Statistics in the "Consumer Price Index for All Urban Consumers, West Region" (Series ID CUUR49SA0). Oregon statute specifically references this West region index, not the national average or other regions. The increase percentage is determined by comparing the December CPI from the previous year to December of the year before that.
For example:
- 2026 increase limit: December 2024 CPI-U West vs. December 2023 CPI-U West = 2.8%
- 2025 increase limit: December 2023 CPI-U West vs. December 2022 CPI-U West = 2.2%
- 2024 increase limit: December 2022 CPI-U West vs. December 2021 CPI-U West = 6.2%
The Oregon Department of Consumer and Business Services publishes the official CPI percentage by November 1st each year for the upcoming calendar year. You can verify the current year's limit at the agency's rental housing section or access the BLS data directly at bls.gov.
Step 2: Calculate the Dollar Amount of the Increase
Once you have the percentage, multiply the tenant's current monthly rent by that percentage. This is straightforward arithmetic, but it's critical to be precise.
Example:
- Current monthly rent: $1,200
- 2026 allowable increase: 2.8%
- Calculation: $1,200 × 0.028 = $33.60
- New rent: $1,233.60 (rounded to nearest cent)
Round to the nearest cent. Do not round up to inflate the increase. Courts have upheld increases rounded to the nearest dollar, but the safest practice is to calculate the exact percentage and round the final amount down if it falls between cents.
Step 3: Verify the Tenancy Is Month-to-Month (or Fixed-Term Has Ended)
ORS 90.323(2) applies only to tenants on month-to-month tenancies or after a fixed-term lease has expired. The statute explicitly states: "The rent increase shall not apply to a tenant whose rental agreement is for a fixed term of one year or longer unless the rent increase applies on the date the fixed term ends."
This means:
- A tenant on a 12-month lease signed in January 2024 cannot receive a rent increase in 2025 under ORS 90.323—their lease rate is locked.
- When that lease expires in January 2025, you may increase rent by the 2025 limit (2.2%) if you offer renewal.
- A tenant month-to-month in 2026 can receive the 2.8% increase if proper notice is given.
- A tenant who was month-to-month for 9 months cannot receive an increase until they have completed 12 months on the property (ORS 90.323(3)).
Step 4: Confirm the Tenant Has Been in Occupancy for 12+ Months
ORS 90.323(3) prohibits any rent increase for the first 12 months of tenancy, even if the tenant is month-to-month. "A landlord shall not increase the rent for a tenant during the first year of a tenancy." This is absolute. If a tenant moved in on March 15, 2025, they cannot receive a rent increase until March 16, 2026 at the earliest.
Track this carefully in your records. The 12-month period runs from the first day the tenant takes occupancy, not from the date the lease is signed.
Notice Requirements: The 90-Day Rule
ORS 90.323(4) Notice Mandate
No rent increase is valid without proper written notice. ORS 90.323(4) states: "A landlord shall not increase rent unless the landlord has given the tenant written notice of the increase at least 90 days before the date the increase is to become effective."
This requirement has three components:
- Written notice: Email, certified mail, hand delivery, or posting on the unit door (per ORS 90.007) are all acceptable. Text messages or verbal notice do not comply.
- At least 90 days advance: 90 days means 90 full calendar days before the effective date. If you serve notice on January 1, 2026, the earliest effective date is April 1, 2026. Do not count the day of service as day 1.
- Notice must specify the new rent amount and effective date: Ambiguous language like "subject to CPI adjustment" without stating the dollar amount is insufficient and may render the notice defective.
What the Notice Must Contain
Oregon law does not prescribe a specific notice form, but the notice must include:
- The current rent amount
- The new rent amount (in dollars and cents)
- The effective date of the increase
- A statement that the increase complies with ORS 90.323 (optional but protective)
- The unit address or identifying information
Recommended Notice Language:
"Dear [Tenant Name],
This letter serves as notice that effective [Effective Date], your monthly rent for [Unit Address] will increase from $[Current Amount] to $[New Amount]. This increase of [X.X%] does not exceed the maximum allowable increase under Oregon Revised Statutes 90.323(2) for [Year].
This notice is provided more than 90 days in advance as required by law.
Sincerely,
[Landlord Name]"
Proof of Service
Retain proof that notice was delivered. If served by mail, keep the receipt or postal confirmation. If hand-delivered, have a witness or take a photo. If emailed, save the delivery receipt. In the event of a dispute, you will need to prove the 90-day period began. ORS 90.007 outlines acceptable service methods; methods that comply with notice requirements for termination (ORS 90.427) are generally acceptable for rent increase notice as well.
The 12-Month Tenancy Rule: Critical Timing
ORS 90.323(3) contains language that creates confusion: "A landlord shall not increase the rent for a tenant during the first year of a tenancy." Combined with the month-to-month application in subsection (2), this creates a bright-line rule: no rent increase is allowed within the first 12 months, regardless of lease type.
After 12 months, the increase may take effect if proper notice is given. If the tenancy is month-to-month, the tenant remains subject to the CPI cap every year thereafter. If the tenancy converts to a new fixed-term lease, the cap does not apply during that term.
| Tenancy Type | When Can Increase Occur? | Increase Capped at CPI? |
|---|---|---|
| Month-to-month from start | After 12 months of occupancy, on any lease renewal or anniversary | Yes, always |
| 12-month fixed lease | At the lease end date only; not during the lease term | Yes, only if month-to-month after |
| 24-month fixed lease | At the lease end date only | Yes, only if month-to-month after |
| Month-to-month, but tenant less than 12 months in | Not until 12 months elapsed | Yes, always (once eligible) |
Penalties for Non-Compliance With ORS 90.323
Statutory Damages and Attorney Fees
Oregon landlord-tenant law treats rent increase violations seriously. ORS 90.385 provides that a tenant may recover damages if a landlord violates ORS 90.323. The statute states:
"A landlord who violates ORS 90.323 is liable to the tenant for actual damages, court costs and attorney fees, except that a landlord shall not be liable if the landlord in good faith attempts to comply with this section."
This "good faith attempt" defense is narrow. It does not excuse outright violations or negligence. Courts have interpreted this to mean landlords must exercise reasonable diligence to determine the correct CPI percentage and serve proper notice. Simple arithmetic errors or off-by-one-day notice failures have been upheld as violations even if the landlord intended to comply.
Actual damages are not capped. If you impose a 5% increase when the cap was 2.8%, a court will calculate the overpayment for every month the excess was collected, plus statutory interest at 9% per annum per ORS 82.010. For a $1,200 rent increase of $36 per month over 12 months ($432 total), actual damages would be $432 plus 9% interest plus attorney fees. If the tenant's attorney bills at $250/hour and spends 15 hours on the case, attorney fees alone could exceed $3,750.
Retaliation Penalty (Triple Damages)
If a tenant can argue that the illegal rent increase was retaliatory—such as increasing rent in retaliation for the tenant requesting repairs or exercising a legal right—ORS 90.385 also provides for treble damages (three times actual damages). The retaliation statute, ORS 90.385, creates a rebuttable presumption of retaliation if a landlord increases rent within 6 months of the tenant's exercise of a legal right. While the rent increase cap violation and retaliation are separate claims, they frequently arise together, and a court may award three times the unpaid overage.
Inability to Enforce Lease Payment
An improperly imposed rent increase is not enforceable. If you file an eviction for nonpayment based on an illegal rent amount, the tenant's affirmative defense that the increase violates ORS 90.323 will likely survive summary judgment. You could win the eviction on other grounds but lose on the illegal increase claim, resulting in an award against you.
Recent Oregon Law Changes and Clarifications
Oregon has not materially changed ORS 90.323 since 2017, but the legislature has clarified its interaction with local rent control ordinances. As of 2023, the law is clear: ORS 90.323 preempts local rent control ordinances that are more restrictive than the state cap. Conversely, if a city or county has a rent control limit lower than the state CPI cap, the lower local limit applies. This has been litigated but is settled law.
Additionally, recent guidance from the Oregon Bureau of Labor and Industries (BOLI) clarifies that the CPI percentage published by the Oregon Department of Consumer and Business Services is the authoritative figure for that year. If you perform your own CPI calculation and it differs from the official agency publication, you are not "good faith" attempting to comply under ORS 90.385—you must use the official figure.
Step-by-Step Compliance Checklist for 2026
- Confirm tenant has been in occupancy for at least 12 full months as of the proposed effective date of the increase.
- Verify the current tenancy is month-to-month or that the fixed-term lease has expired and the tenant remains in possession.
- Look up the official 2026 CPI limit: 2.8% (based on December 2024 BLS data; verify with Oregon Department of Consumer and Business Services if later data has been released).
- Calculate the new rent: current monthly rent × 1.028 (or × 0.028 for the increase amount).
- Determine the effective date. It must be at least 90 days from the date of notice.
- Draft written notice including current rent, new rent (in dollars and cents), effective date, and unit address.
- Serve notice by mail, email, hand delivery, or posting. Retain proof of delivery.
- Document the service date. Do not count this day as day 1; count forward 90 calendar days.
- File the notice in your tenant record file. Reference ORS 90.323 in your records.
- If the tenant disputes the increase, have ready: the lease or tenancy start date, the CPI documentation, the notice with proof of service, and your rent calculation.
Common Mistakes That Trigger Violations
Mistake #1: Using the Wrong CPI Figure
Some landlords use the national CPI-U or the local Portland metro CPI without understanding Oregon requires the West Region CPI-U. Always verify you are using CUUR49SA0 (West Urban Consumers).
Mistake #2: Counting Notice Days Incorrectly
Landlords often believe 90 days from January 1 is March 30. It is actually April 1. Use an online date calculator or add 90 to your calendar application. Better yet, give 100 days' notice to avoid disputes.
Mistake #3: Increasing Rent Without Checking the 12-Month Threshold
A tenant who moved in on March 15, 2025 cannot receive an increase notice until after March 15, 2026. If you send notice in February 2026, it is premature and unenforceable.
Mistake #4: Assuming All Oregon Properties Are Exempt
Some landlords believe owner-occupied properties or small portfolios are exempt from ORS 90.323. They are not. The statute applies to all residential tenancies statewide.
Mistake #5: Increasing a Rent Amount Based on Market Conditions, Not CPI
It does not matter if the market rent is $500 higher. ORS 90.323 caps the annual increase to the CPI percentage. If you impose a larger increase, you violate the statute.
The Role of Lease Language: What You Cannot Do
A lease clause stating "rent increases are not subject to ORS 90.323" or "rent increases shall be determined by landlord sole discretion" is void. ORS 90.323 is a mandatory provision of law that cannot be waived by contract. Tenants often raise this issue in defense of nonpayment evictions, arguing the lease clause is unenforceable. Oregon courts agree.
You can include language in a lease informing the tenant of the CPI cap, but you cannot contract around it. A lease stating "annual rent increases shall not exceed the CPI percentage as defined in ORS 90.323" is compliant and clear.
Coordination With Lease Operations and Rent Payment Tracking
Managing rent increases across multiple units requires organized systems. If you track rent payments, lease terms, and tenant occupancy dates in LeaseBase Lease Operations, you can generate reports that flag which tenants are eligible for increases each year, calculate the new amounts, and create audit-ready documentation of your CPI calculations. This reduces the risk of serving notice prematurely (before 12 months) or using outdated rent figures.
LeaseBase Rent Payments also allows you to record the effective date of rent increases, so your payment records show when the old rate ended and the new rate began. This creates a clean trail for disputes.
Frequently Asked Questions
Q: Can I increase rent mid-lease if the lease allows it?
No. ORS 90.323(2) explicitly exempts fixed-term leases of one year or longer. The increase cap applies only when the lease ends or the tenancy is month-to-month. A lease clause permitting mid-term increases does not override the statute.
Q: What if I miss the 90-day notice deadline?
The rent increase cannot take effect on the date you specified. You must serve new notice with a 90-day lead time from the new effective date. The tenant owes only the original rent until valid notice is given and the 90-day period expires. Do not attempt to collect back rent at the higher rate; this will expose you to damages and attorney fees.
Q: Can I impose a 0% increase if I choose?
Yes. ORS 90.323 sets a maximum cap, not a minimum. You can choose not to increase rent, to increase it by 1%, or to increase it by the full 2.8%. The statute does not require you to increase rent at all.
Q: Does the CPI cap apply to additional fees (parking, pet rent, etc.)?
ORS 90.323 applies to "rent," which is the base monthly payment for occupancy of the unit. Fees for parking, pet rent, or other add-ons are arguably separate. However, if a fee is structured as rent (e.g., a pet rent charge on the lease that is included in the monthly rent figure), courts have treated it as subject to the cap. Separate parking or pet fees that are clearly itemized and optional may not be capped. Consult an attorney if you have complex fee structures.
Q: What is the penalty if I accidentally overshoot the CPI limit by $5 per month?
Under ORS 90.385, you are liable for actual damages (the overage), attorney fees, and court costs. A $5/month overage over 12 months is $60 in damages plus attorney fees. While this may seem small, if the tenant retains counsel, the attorney fees will far exceed the actual overage. The "good faith attempt" defense is available only if you can show you exercised reasonable diligence to comply with the exact limit. A $5 error may or may not qualify, depending on how you calculated the amount.
Q: Are there any exemptions for new construction or ADUs?
No. ORS 90.323 does not exempt new construction, accessory dwelling units (ADUs), or properties built after a certain year. The cap applies uniformly. Some landlords argue that ADUs are not "residential tenancies" covered by ORS 90.323, but Oregon courts have consistently ruled that ADUs rented to third parties are subject to the Act.
Summary: Compliance Steps for 2026
Oregon's rent increase cap is straightforward in principle but requires precision in execution. The 2026 limit is 2.8%. To comply:
- Confirm the tenant has occupied the unit for 12+ months.
- Verify the tenancy is month-to-month or the lease term has ended.
- Calculate the new rent: current rent × 1.028.
- Serve written notice at least 90 days before the effective date.
- Retain proof of service and documentation of your CPI calculation.
Violations result in actual damages, attorney fees, and potential treble damages if retaliation is found. The "good faith attempt" defense is narrow and unlikely to save you if you made a clear error. Document every step and use a system that flags eligible tenants each year.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.