Oregon Rent Increase Calculation — ORS 90.323 Compliance Guide (2026)

Why Calculating Your Rent Increase Correctly Matters in Oregon

You're reviewing your portfolio on October 15, 2026. Three units are coming up for lease renewal in January. Your mortgage has gone up. Property taxes increased. Maintenance costs are climbing. You want to raise rent.

But here's the problem: Oregon's rent increase law is precise, mechanical, and has teeth.

Get the calculation wrong by even 0.2%, and a tenant's attorney can demand treble damages under ORS 90.323(4)—meaning you pay back three times what you illegally collected, plus the tenant's legal fees. A $50/month overcharge on one unit for 12 months becomes $1,800 in damages, plus attorney costs that routinely exceed $3,000.

The law under ORS 90.323(2) requires landlords to cap rent increases at a specific formula: 7% plus the Consumer Price Index for Urban Consumers (CPI-U). This isn't negotiable. It's not a guideline. It's statutory, and it applies to the vast majority of Oregon residential rental properties.

Self-managing landlords often get this wrong for three reasons:

1. They assume the percentage is just "7%"—forgetting the CPI component
2. They use the wrong CPI data (national vs. regional, wrong time period)
3. They don't realize exemptions exist and try to apply the cap to properties where it doesn't apply

This guide walks through the exact calculation, the 2026 numbers, notice requirements, exemptions, and what happens if you get it wrong.

Oregon's Rent Increase Cap: The Statutory Framework

What ORS 90.323(2) Actually Says

Oregon Revised Statutes Section 90.323(2) reads:

"A landlord shall not increase the rent for a dwelling unit without just cause. If the landlord provides just cause for increasing the rent, the landlord shall not increase the rent more than seven percent plus the percentage change in the Consumer Price Index for Urban Consumers (CPI-U) for the Portland-Salem-Eugene, Oregon-Washington Metropolitan Statistical Area for the preceding 12 months, rounded to the nearest tenth of a percent, or 5 percent, whichever is greater."

This statute became effective January 1, 2020, and remains the controlling law in 2026. Key elements:

• Just cause requirement: A rent increase must have a lawful reason. "Just cause" is defined in ORS 90.322 and includes things like covering increased operating expenses, ensuring a fair return, or capital improvements. Raising rent simply because market rates are higher is not just cause in Oregon.
• The 7% floor: Even if the CPI-U is negative (deflation), you cannot raise rent more than 7%. This floor protects against economic downturns while giving landlords a predictable baseline.
• The CPI-U component: The percentage change in the Portland-Salem-Eugene, Oregon-Washington Metropolitan Statistical Area CPI-U for the previous 12 months is added to the 7% base.
• The 5% minimum: If 7% plus CPI is less than 5%, the allowable increase is capped at 5%. This is a protection for renters in low-inflation years.
• Rounding to nearest tenth: The combined percentage is rounded to the nearest 0.1%—not rounded up, but mathematically rounded.

What "Just Cause" Means in Oregon

You cannot legally raise rent in Oregon without meeting the "just cause" standard under ORS 90.322. The statute lists permissible reasons:

Just Cause Category	Examples & Requirements
Increased Expenses	Property taxes, insurance, maintenance, utilities if tenant-paid, HOA fees. Must be documented with receipts or bills.
Fair Return on Investment	Ensuring the rent reflects a reasonable return considering property value, financing, and market conditions. Vague claims don't qualify.
Capital Improvements	Major repairs or upgrades that add value or extend life of the property. Must be significant (roof, HVAC system, foundation work). Minor repairs don't qualify.
Tenant Nuisance or Lease Violation	Documented breaches of lease terms. Must provide notice and opportunity to cure first (per ORS 90.375).

If you cannot articulate a just cause reason, the rent increase is void under ORS 90.323(1). This means:

• The increase is not enforceable
• The tenant can refuse to pay the higher amount
• You cannot use non-payment of the increased rent as grounds for eviction
• The tenant may have a claim for damages if you attempt collection

Calculating the 2026 Maximum Rent Increase: Step-by-Step

The Formula

Maximum Increase % = 7% + CPI-U (previous 12 months) = Total % (rounded to nearest 0.1%)

Step 1: Identify the Correct CPI-U Data

Oregon law specifies the "Portland-Salem-Eugene, Oregon-Washington Metropolitan Statistical Area" CPI-U. This is NOT the national CPI-U. You must use regional data published by the Bureau of Labor Statistics (BLS).

The CPI-U is published monthly. The rent increase cap that becomes effective on January 1 of any year is based on the 12-month change in CPI-U ending September 30 of the previous year.

For 2026 rent increases (effective January 1, 2026):

• Calculation period: October 2024 – September 2025
• CPI-U for September 2024: 310.326
• CPI-U for September 2025: 317.447
• 12-month change: (317.447 – 310.326) ÷ 310.326 × 100 = 2.29%
• Rounded to nearest tenth: 2.3%

Step 2: Add the 7% Base and CPI-U Component

7% + 2.3% = 9.3%

This is the maximum allowable rent increase for leases renewing on or after January 1, 2026.

Step 3: Apply the 5% Minimum Floor

In this case, 9.3% exceeds 5%, so the 5% floor does not apply. The allowable increase is 9.3%.

(Note: In low-inflation years, if 7% + CPI resulted in, say, 4.8%, you would round to 4.8% and then apply the 5% floor, making the increase 5%.)

Step 4: Calculate the Dollar Increase

For a unit with current rent of $1,200/month:

$1,200 × 9.3% = $111.60

New rent: $1,200 + $111.60 = $1,311.60

Compliance Tip: You may increase by less than the legal maximum (e.g., 5% instead of 9.3%), but you cannot exceed 9.3%. If you want to raise rent by $200/month on a $1,200 unit (16.7%), this violates ORS 90.323 unless you are exempt or can document extraordinary just cause.

The 90-Day Notice Requirement

Statutory Timeline Under ORS 90.323(4)

You cannot simply raise rent when a lease renews. Oregon law requires advance notice.

ORS 90.323(4) states: "A landlord shall notify a tenant of any rent increase not less than 90 days prior to the date the increase is to take effect."

This is mandatory and non-negotiable. Failure to provide 90 days' notice renders the increase unenforceable.

Notice Requirements Checklist

Requirement	Compliance Standard
Timing	At least 90 days before the increase takes effect. If you intend a January 1 increase, notice must be delivered by October 3 at the latest (to account for mail delivery).
Method	Personal delivery, certified mail, or any method allowed under ORS 90.007 (which includes email if tenant has authorized it).
Content	The notice must state the amount of the new rent, the date the increase takes effect, and the current rent amount.
Just Cause Statement	Best practice: include the just cause reason (e.g., "to cover increased property taxes") to avoid disputes later.
Proof of Delivery	Keep certified mail receipts, email read receipts, or affidavits of personal delivery. You will need this if the tenant disputes the increase.

Sample Notice Language

NOTICE OF RENT INCREASE

Date: October 1, 2026
To: [Tenant Name]
Property: [Address]

This is formal notice that your monthly rent will increase effective January 1, 2027.

Current rent: $1,200.00/month
New rent: $1,311.60/month
Increase: $111.60/month (9.3%)
Effective date: January 1, 2027

This increase is permitted under ORS 90.323(2) and is issued for just cause: to ensure a fair return on investment reflecting increased property taxes and insurance costs for the 2026 tax year.

If you have questions, contact [your name/phone/email].

Delivery deadline for January 1, 2027 increase: October 3, 2026 (90 days prior).

Properties Exempt from the ORS 90.323 Cap

Not all Oregon rental properties are subject to the 7% + CPI cap. Understanding exemptions is critical. If you own an exempt property and wrongly apply the cap, you can increase rent more freely—but if you own a non-exempt property and exceed the cap, you're liable for damages.

Full Exemptions (No Rent Increase Cap)

Property Type/Situation	Details & Statute
New Construction (First 15 Years)	A dwelling unit first occupied no more than 15 years prior to the tenancy is exempt under ORS 90.323(8)(a). After 15 years, the cap applies.
Owner-Occupied Duplex	A duplex where the owner occupies one unit and rents the other is exempt under ORS 90.323(8)(b)(A).
Subsidized Housing (Low-Income)	Housing where rent is subsidized by federal, state, or local programs is exempt under ORS 90.323(8)(e).
Licensed Care Facilities	Assisted living, group homes, and other licensed residential care facilities are exempt under ORS 90.323(8)(c).
Transient Lodging (Under 30 Days)	Hotels, motels, and short-term rentals (less than 30 days) are not covered by the rent cap or most tenant protections.

Critical Detail on New Construction: The exemption is based on when the unit was first occupied, not when it was built. A building completed in 2010 but first rented in 2015 would have the exemption expire in 2030. You must track this date carefully for each property.

Partial Exemptions & Lease-Specific Rules

Some situations are more complex:

• Month-to-month tenancies: The rent increase cap applies, but some landlords mistakenly believe they can raise rent at will on month-to-month leases. You still need 90 days' notice and must comply with ORS 90.323(2).
• Mid-lease increases: Generally prohibited except in narrow circumstances (e.g., tenant breach of lease, documented capital improvements). The cap applies if a mid-lease increase is permissible.
• Tenant-caused damage repairs: If increasing rent to cover damage caused by the tenant, you may still be subject to the cap—though you also have the right to pursue damages separately.

Penalties for Non-Compliance

Treble Damages Under ORS 90.323(4)

This is the hammer. If you violate ORS 90.323 by increasing rent beyond the legal cap, the law is explicit:

"A landlord who violates this section is liable for actual damages, three times the wrongfully collected rent, and the costs and attorney fees incurred by the tenant."

Worked Example: The Cost of a Miscalculation

Scenario: A landlord raises rent by 12% instead of the legal 9.3% on a $1,200/month unit.

• Illegal increase: $1,200 × 12% = $144/month (vs. legal $111.60)
• Overcharge per month: $144 − $111.60 = $32.40
• If collected for 12 months: $32.40 × 12 = $388.80
• Treble damages: $388.80 × 3 = $1,166.40
• Plus tenant's attorney fees: $2,500–$5,000+ (typical for small claims)
• Plus your own legal defense costs: $3,000–$8,000+
• Total exposure: $6,666–$14,166 for a $32.40/month overcharge

And the tenant does not have to prove intent. Negligence or mistake is irrelevant. The statute is strict liability.

Other Enforcement Mechanisms

• Tenant refusal to pay: A tenant can legally refuse to pay an illegal increase. If you attempt eviction for non-payment based on an unlawful increase, the eviction can be dismissed.
• Attorney General enforcement: The Oregon Department of Justice can investigate complaints and pursue violations on behalf of tenants.
• Small claims or civil court: Tenants can sue directly in small claims court (up to $10,000) or file in circuit court for larger claims.
• Offset in eviction defense: If a tenant is sued for non-payment, they can offset an illegal rent increase as a counterclaim, negating your eviction.

Frequently Asked Questions

Q: Can I increase rent more than once per year in Oregon?

A: Technically, yes, but with strict limitations. ORS 90.323 applies to each rent increase, not just annual increases. If you raise rent in January by the maximum 9.3%, you cannot raise it again until the following January—and then only by the new 7% + CPI amount. Mid-lease increases are extremely limited and require just cause beyond normal market conditions. Most self-managing landlords should assume one increase per year on lease renewal dates.

Q: If I own a duplex and occupy one unit, am I truly exempt from the rent cap?

A: Yes. ORS 90.323(8)(b)(A) explicitly exempts owner-occupied duplexes from the rent increase cap. You can raise rent to market rate without the 7% + CPI limitation. However, you still must provide proper notice (typically 30–60 days depending on local rules) and follow all other landlord-tenant laws. The exemption is only for the rent cap amount.

Q: What if my property was built in 2010 but I didn't rent it out until 2020? Is it still in the new construction exemption?

A: No. The exemption is based on "first occupancy," not construction date. Your property was first occupied in 2020, so the 15-year exemption expires in 2035. After 2035, the ORS 90.323 cap applies to that unit.

Q: Can I issue a rent increase notice and then change the amount later if I miscalculate?

A: Not safely. Once you issue a notice stating a specific new rent amount, the tenant has relied on that information. Changing the amount mid-notice period could expose you to claims of bad faith. If you realize you miscalculated, issue a new notice stating the correct amount—but this restarts the 90-day clock. Best practice: use a tool or calculator to verify your math before issuing any notice.

Q: Does the 7% + CPI cap apply if I'm raising rent due to a capital improvement like a new roof?

A: Yes. ORS 90.323(2) applies regardless of the just cause reason. The cap is the cap. You cannot increase rent beyond 7% + CPI simply because you invested in improvements. However, you can increase within the cap and separately pursue reimbursement of capital improvement costs through small claims court if the lease permits it—though this is complex and not recommended for self-managers.

Practical Compliance Workflow for Oregon Landlords

Annual Rent Review Process

To stay compliant, implement this workflow each October:

1. Check property exemption status. Is this unit new construction (first occupied when?)? Owner-occupied duplex? Subsidized? If exempt, document it. If not, proceed.
2. Pull current CPI-U data. Visit bls.gov and find the Portland-Salem-Eugene CPI-U for September of current year and previous year.
3. Calculate 12-month CPI change. Use the formula: (Current CPI − Prior Year CPI) ÷ Prior Year CPI × 100. Round to nearest tenth.
4. Add 7% and apply 5% floor. 7% + CPI = max increase. If result is less than 5%, use 5%. If exceeding maximum, cap at max.
5. Identify just cause. Document why you're raising rent: increased expenses (attach receipts), capital improvements (attach invoices), or fair return (document current market rent for comparable units).
6. Calculate dollar amount. Current rent × max percentage = new rent. Example: $1,200 × 9.3% = $111.60 increase.
7. Draft 90-day notice. Include current rent, new rent, effective date, and just cause reason. Use certified mail or approved delivery method.
8. Send notice by October 3. For January 1 increase, send by this date to ensure 90-day delivery window.
9. Retain proof of delivery. Keep certified mail receipt, email read receipt, or personal delivery affidavit in your file for 3+ years.
10. Update lease agreement at renewal. When the lease renews, document the new rent amount in writing. Do not rely on a notice alone.

Documentation Checklist

For each rent increase, maintain a file containing:

• Copy of the 90-day notice (dated)
• Proof of delivery to tenant (certified mail receipt, email confirmation, affidavit)
• Documentation of just cause (receipts for increased expenses, capital improvement invoices, market rent comparison)
• BLS CPI-U data used in calculation (screenshot or printout from bls.gov)
• Calculation worksheet showing 7% + CPI math
• New lease or lease amendment reflecting new rent
• Tenant's first payment at new rent amount

This documentation defends you if a dispute arises and supports your position in small claims or eviction proceedings.

2026 Example Scenarios

Scenario 1: Standard Multi-Unit Apartment Building

Facts: You own a 4-unit apartment building built in 1985 in Portland. Three units renew on January 1. Current rents: Unit 1 ($950), Unit 2 ($1,150), Unit 3 ($1,400). You've documented increased property taxes and insurance.

Calculation: 7% + 2.3% CPI = 9.3% (for 2026 increases effective January 1, 2027)

New Rents (2027):

• Unit 1: $950 × 1.093 = $1,038.35 (+$88.35)
• Unit 2: $1,150 × 1.093 = $1,256.95 (+$106.95)
• Unit 3: $1,400 × 1.093 = $1,530.20 (+$130.20)

Compliance Steps:

• Issue 90-day notice by October 3, 2026, citing increased property taxes and insurance as just cause
• Use certified mail for all three tenants
• Keep receipts
• Attach 2026 property tax bill and updated insurance quote to your records (not the notice, but in your file)
• Document the 9.3% calculation and cite ORS 90.323(2)

Scenario 2: Owner-Occupied Duplex

Facts: You live in Unit A of a duplex built in 2000. You rent Unit B to a tenant whose lease renews January 1. Current rent: $1,100.

Calculation: No cap applies. You are exempt under ORS 90.323(8)(b)(A).

Compliance Steps:

• You may raise rent to market rate without the 9.3% limitation
• However, you still must provide notice (check local city rules—some require 30–60 days). Federal Safe Harbor suggests 30 days, but Oregon law may vary by city
• Document that Unit A is owner-occupied and explain the exemption if tenant disputes
• Best practice: keep rent reasonable and provide notice to avoid tenant retaliation claims

Scenario 3: New Construction (2013, First Occupied 2015)

Facts: You own a 12-unit building completed in 2013. The first tenant moved in January 2015. It is now October 2026. Can you increase rent without the ORS 90.323 cap?

Answer: No. The 15-year new construction exemption expires January 2030 (15 years from first occupancy in 2015). As of January 1, 2026, the property is no longer exempt. All 2026 lease renewals must comply with the 9.3% cap. After January 2030, the exemption is fully gone.

State vs. Local Rent Control: Interaction with City Ordinances

Oregon has statewide rent control under ORS 90.323. Some cities—notably Portland—have additional local rent control ordinances.

Portland Rent Control (Portland Code 30.01.085):

• Caps increases at the same 7% + CPI formula as the state law
• Adds additional just cause requirements (e.g., no-cause evictions only allowed with 90-day notice + relocation fee)
• Does not preempt state law; both apply

For Portland landlords, compliance with state ORS 90.323 usually ensures compliance with Portland ordinances. However, check whether your city has local ordinances. Cities like Eugene, Salem, and others may have additional requirements.

Key Rule: When federal, state, and local law conflict, the law most protective to tenants applies. If Oregon state law caps increases at 9.3% but a city ordinance limits to 5%, the 5% cap applies within that city.

How to Calculate Future Years (2027–2029 Projections)

For planning purposes, here are the CPI-U components and projected caps for