Key Takeaways
- Oregon rent increases are capped at the annual CPI-U percentage — ORS 90.323(2) ties the maximum allowable increase to the Bureau of Labor Statistics Consumer Price Index for All Urban Consumers (CPI-U), calculated year-over-year for the 12-month period ending September 30.
- For 2026, the cap is 2.49% — based on September 2025 CPI-U data. This applies to all month-to-month tenancies and fixed-term leases upon renewal, with limited exceptions for newly constructed units.
- Failure to comply results in rent being deemed excessive — tenants can challenge increases exceeding the cap in court, and landlords may face attorney fees and damages under ORS 90.385.
- You must provide 90 days’ notice before any rent increase — notice must be in writing and comply with ORS 90.322 delivery requirements (personal delivery, certified mail, or posting).
- The CPI calculation is automatic and non-discretionary — Oregon does not allow landlords to increase rent by any amount above the CPI-U cap, even if property taxes or maintenance costs rise.
- New construction exemptions expire after 15 years — units built after January 1, 2004, are exempt from the rent control cap for the first 15 years; after that, the CPI cap applies.
Understanding Oregon’s Rent Increase Cap Under ORS 90.323
Oregon is one of 12 states with statewide rent control, and it operates differently than California, Washington, or New York. The system is simple on its face but requires precision in execution. Unlike jurisdictions with fixed percentage caps (like Washington’s 7% + CPI formula), Oregon ties the entire allowable increase to a single metric: the Consumer Price Index for All Urban Consumers (CPI-U) for the 12-month period ending September 30 of the preceding year.
This means your rent increase calculation for 2026 is already set. You cannot decide to increase rent by 3% because your mortgage payment went up. You cannot charge 4% because the property tax assessment increased. Oregon law caps rent increases at the CPI-U percentage, period.
The statute language is direct: “A landlord may increase the rent for a month-to-month tenancy only once every 12 months, and only by the percentage of increase in the Consumer Price Index for All Urban Consumers (CPI-U) for the 12-month period ending September 30 of the prior year.” (ORS 90.323(2))
Compliance here means two things: (1) calculating the correct percentage based on published BLS data, and (2) delivering the notice properly within the statutory timeframe. Get either wrong, and your tenant has a legal claim against you.
The 2026 Oregon Rent Increase Cap: 2.49%
For rent increases effective in 2026, the allowable cap is 2.49%, based on the CPI-U index for the 12-month period ending September 30, 2025.
This is calculated by the Bureau of Labor Statistics (BLS), not by you. The Oregon Department of Consumer and Business Services (DCBS) does not establish or publish a separate cap. Instead, landlords and tenants rely on the official CPI-U data released by the U.S. Bureau of Labor Statistics each month, with the September-year figure being the controlling number for the following calendar year’s increases.
For reference, here are the recent CPI-U caps for Oregon rent increases:
| Effective Year | CPI-U Cap | Based On Period Ending |
|---|---|---|
| 2024 | 3.5% | September 30, 2023 |
| 2025 | 3.15% | September 30, 2024 |
| 2026 | 2.49% | September 30, 2025 |
If you increase rent by more than 2.49% in 2026, that excess amount is deemed illegal under ORS 90.323. The tenant can withhold the overage, file a complaint with the Oregon Bureau of Labor and Industries (BOLI), or sue for damages and attorney fees.
Step-by-Step: How to Calculate Your Allowable 2026 Rent Increase
While the percentage is already set by BLS data, the practical application to individual units requires careful attention to your lease terms and timing.
Step 1: Identify Which Leases Are Subject to the Cap
The CPI cap in ORS 90.323(2) applies to:
- Month-to-month tenancies — any time a tenant is renting without a fixed-term lease or after a fixed-term lease expires and the tenant remains in possession
- Fixed-term leases upon renewal — when a lease term ends and a new lease is executed, the increase for that new term is capped at CPI-U
Exceptions (not subject to the cap):
- New construction (units built after January 1, 2004, in their first 15 years) — these units are exempt from the CPI-U cap. After 15 years of occupancy or January 1, 2019, whichever is later, the cap applies. (ORS 90.323(3))
- Vacant unit re-renting — when a tenant vacates and a new tenant moves in, ORS 90.323(1) permits the landlord to charge market rent with no cap. The cap only applies to increases for tenants who remain in occupancy.
This distinction is critical. If a tenant in Unit 3 has been there since 2023 and pays $1,400/month, you can raise it to $1,435/month (2.49% increase). But if that tenant leaves and you re-rent Unit 3 to a new tenant in 2026, you can charge $1,600/month if the market supports it. The cap does not apply to new tenants.
Step 2: Determine the Rent Increase Date
For month-to-month tenancies, you can increase rent once per 12-month period. The key date is when the increase takes effect, not when you serve notice.
Example: A tenant’s month-to-month lease anniversary is March 1. You can serve a rent increase notice on December 1 (90 days in advance, as required) for an increase effective March 1. After that increase takes effect, you cannot increase rent again until the next March 1 anniversary.
For fixed-term leases, the increase applies upon renewal. If a lease expires on June 30, 2026, and a new lease begins July 1, 2026, the new rent on that lease can reflect the 2.49% cap (or market rate if it’s a vacant re-rent).
Step 3: Calculate the New Rent Amount
The math is straightforward:
Current Rent × 1.0249 = New Rent Amount
(For 2026, multiply by 1.0249 to add 2.49%)
Example:
- Current rent: $1,200/month
- 2026 allowable increase: 2.49%
- Calculation: $1,200 × 1.0249 = $1,229.88
- New rent: $1,229.88/month (round to nearest cent)
You can round the final amount to the nearest dollar if desired, but rounding up above the calculation is not permitted.
Step 4: Serve Written Notice 90 Days in Advance
This is where many landlords fail to comply. ORS 90.322 requires 90 days’ written notice before any rent increase becomes effective.
Notice requirements under ORS 90.322:
- Form: Written notice (not oral, text, or email, unless email is specifically authorized in the lease)
- Content: The notice must state the amount of the new rent, the date it takes effect, and the amount of the increase
- Timing: Must be delivered at least 90 calendar days before the effective date of the increase
- Delivery method: Personal delivery, certified mail with return receipt, or posting on the property (if personal delivery or mail is not reasonably available)
If you serve notice on December 1, the earliest effective date is March 1 (90 days later). If you serve notice on August 1, the earliest effective date is November 1.
Penalty for inadequate notice: If you fail to provide 90 days’ notice, the rent increase is void, and the rent remains at the previous amount until proper notice is served. ORS 90.322 does not specify a damages amount for improper notice, but a tenant can file a complaint with BOLI or sue, and attorney fees may be awarded under ORS 90.385.
Exceptions: When the CPI-U Cap Does Not Apply
Newly Constructed Units (15-Year Exemption)
Oregon provides landlords with one meaningful exception to rent control: newly constructed residential units are exempt from the CPI-U cap for 15 years from the date of initial occupancy.
“Newly constructed” means a dwelling unit that was not previously occupied, built after January 1, 2004. (ORS 90.323(3))
The exemption window runs from the date of initial occupancy. If a unit was first occupied on June 15, 2024, the exemption expires on June 15, 2039. After that date, the CPI-U cap applies to any rent increases for that unit.
Key compliance point: You must track the original occupancy date for each newly constructed unit. If you lose this documentation, a tenant can challenge your claim that the exemption applies, and you may need to prove the date in court. Some Oregon landlords create and retain a dated certificate of occupancy or initial lease execution document to establish occupancy dates.
The exemption is not a blank check to increase rent by any amount. It simply removes the CPI-U cap. You can charge market rent, but that rent must still be reasonable under the general requirement that all lease terms be non-discriminatory and not in retaliation for a tenant exercise of rights (ORS 90.385).
Vacant Unit Re-Renting
When a tenant vacates a unit and you re-rent it to a new tenant, ORS 90.323(1) explicitly permits you to charge market rent:
“A landlord may increase the rent for a dwelling unit rented to a new tenant who has not previously occupied the dwelling unit during the prior tenancy or tenancies only by the amount permitted by market forces, except as provided in subsection (2) of this section.”
This is one of the few areas where landlords have pricing flexibility under Oregon law. Once a new tenant’s lease begins, the CPI-U cap applies to increases for that tenant, but you can set initial rent at market rate.
Compliance caveat: You cannot circumvent the cap by constructively evicting a tenant or terminating their month-to-month agreement solely to raise rent. That would violate ORS 90.385’s anti-retaliation provision. Terminating a tenancy primarily to re-rent at higher rent, without legitimate business reason, can expose you to damages of up to three months’ rent plus attorney fees.
Tracking and Documentation Best Practices
To prove compliance in a dispute, maintain a record for each unit showing:
- Lease execution date and unit construction date (to confirm whether new construction exemption applies)
- Current rent amount and increase history (to show year-over-year increases do not exceed cap)
- Date of rent increase notice served and delivery method proof (certified mail receipt, signed acceptance, or dated posting photo)
- Effective date of increase and new rent amount
- CPI-U percentage used for calculation (with reference to the BLS data for the relevant September 30 period)
This documentation protects you if a tenant disputes the increase or if BOLI investigates a complaint. You can demonstrate you calculated the increase correctly and provided proper notice.
Many property management platforms, including LeaseBase lease operations tools, include templates for rent increase notices and calculation worksheets that auto-populate the current CPI-U cap for your state, reducing the risk of error.
Legal Consequences of Non-Compliance
Rent Deemed Excessive and Void
If you increase rent by more than the CPI-U cap (or without 90 days’ notice), that portion of the rent is deemed excess and illegal. The tenant can:
- Refuse to pay the excess amount and deposit it in a bank account, demonstrating good faith (ORS 90.324)
- File a complaint with the Oregon Bureau of Labor and Industries (BOLI)
- Sue for damages and attorney fees under ORS 90.385
The excess amount is recoverable by the tenant, and landlords have no legal claim to collect it.
Penalty Structure Under ORS 90.385
Oregon’s remedies for landlord non-compliance with rent control are strict:
| Violation Type | Tenant Remedy | Additional Consequences |
|---|---|---|
| Rent increase exceeds CPI-U cap | Recover excess paid + attorney fees | BOLI can pursue civil penalties; rent reduction applies prospectively |
| Rent increase without 90 days’ notice | Increase is void; rent stays at prior level until proper notice served | Attorney fees if tenant disputes; BOLI complaint possible |
| Retaliation (raising rent to punish tenant) | Up to 3 months’ rent in damages + attorney fees | Presumption of retaliation if increase follows protected activity (complaint, repair request, etc.) |
Attorney fees are one of the most significant penalties. If a tenant sues and wins, you must pay their legal costs. In a landlord-tenant dispute, this often exceeds the amount of the excess rent itself.
BOLI Enforcement
The Oregon Bureau of Labor and Industries investigates rent control complaints under ORS 90.323. A tenant can file a complaint without hiring an attorney. If BOLI finds a violation, it can issue a cease-and-desist order and seek civil penalties.
BOLI does not have a published penalty schedule for rent control violations, but enforcement can result in forced rent reduction, payment of tenant damages, and agency costs.
How to Determine the Current Year’s CPI-U Cap
You must know which CPI-U figure to use before serving notice. The rule is straightforward:
For rent increases effective in any year, use the CPI-U percentage for the 12-month period ending September 30 of the prior year.
How to find the data:
- Visit the U.S. Bureau of Labor Statistics (BLS) website: www.bls.gov
- Locate the “CPI Inflation Calculator” or “Average Energy Prices” section (search for “Consumer Price Index”)
- Find the 12-month percentage change for the “All Items” category (not seasonally adjusted or adjusted, both are published)
- Note the reference period: September 2025 data is released in mid-October 2025; use this figure for 2026 rent increases
Oregon-specific data: The BLS publishes separate CPI data for the Portland-Salem-Corvallis, OR metropolitan area as well as national averages. For ORS 90.323, use the national CPI-U for All Urban Consumers, not the regional figure. This is the standard interpretation by Oregon courts and BOLI.
Publication schedule: The BLS releases the CPI-U report around the 10th–15th of each month for the prior month’s data. The September report (containing the year-over-year figure for 2026 increases) is typically released in mid-October 2025.
Recent Legal Developments and 2024–2026 Changes
No major changes to ORS 90.323 have been enacted since the statute’s 2019 codification. The CPI-U rent control cap remains the binding rule for all Oregon landlords, with no exemptions or adjustments for inflation in specific cost categories (property taxes, utilities, repairs).
In 2024, Oregon legislators proposed but did not pass HB 3090, which would have created an exemption for “necessary cost increases” (utilities, property taxes, maintenance). The bill died in committee, and no similar proposal has advanced in the 2025 or 2026 sessions. For now, landlords in Oregon operate under the strict CPI-U cap with no flexibility for rising costs.
Tenant advocacy impact: Oregon is a tenant-favorable state. Anti-rent-increase ballot measures and legislative proposals continue to emerge. Monitor updates from the Oregon Residential Tenants Association and BOLI for any rule changes affecting rent calculation.
Compliance Checklist for 2026 Rent Increases
Use this checklist before serving any rent increase notice:
Pre-Notice Verification
- ☐ Confirm tenant is in month-to-month tenancy or existing fixed-term lease (not new tenant in vacant unit)
- ☐ Verify unit is NOT newly constructed (or confirm 15-year exemption window has not expired)
- ☐ Check last rent increase date to confirm 12 months have passed (for month-to-month)
- ☐ Confirm 2026 CPI-U cap is 2.49% (or verify current year cap from BLS)
- ☐ Calculate new rent: current rent × 1.0249
- ☐ Round to nearest cent (no rounding up beyond calculation)
Notice Service Requirements
- ☐ Prepare written notice with: (1) current rent, (2) new rent amount, (3) effective date, (4) increase percentage
- ☐ Verify notice will be delivered 90+ days before effective date
- ☐ Choose delivery method: personal delivery, certified mail with return receipt, or posted on property
- ☐ Retain proof of delivery (signed receipt, certified mail receipt, or dated photo of posting)
- ☐ Do not serve notice via text, email, or verbal communication alone
Post-Service Documentation
- ☐ File copy of notice in tenant file with delivery proof attached
- ☐ Record effective date and new rent in property management system
- ☐ Note the 2026 CPI-U cap (2.49%) used for calculation in file
- ☐ Do not increase rent further until 12 months after effective date of this increase
- ☐ If tenant disputes increase, preserve all documentation for potential BOLI complaint or lawsuit
FAQ: Oregon Rent Increase Calculations
Q1: Can I increase rent by less than the CPI-U cap?
A: Yes. The CPI-U percentage is the maximum allowable increase, not the minimum. You can increase rent by 1%, 1.5%, or 2% if you choose—as long as it does not exceed the cap. Many landlords increase by a lower percentage to remain competitive in the rental market or maintain tenant retention. There is no penalty for increasing by less than the cap.
Q2: If a tenant moves out mid-year, can I increase rent for a new tenant immediately?
A: Yes. ORS 90.323(1) permits market-rate rent for new tenants. You can increase rent for a vacant re-renting any time, and by any amount, as long as the new rent is not discriminatory or retaliatory. Once the new tenant moves in, the CPI-U cap applies to future increases for that tenant, but not to the initial rent set for their occupancy.
Q3: What happens if I serve a rent increase notice but the tenant moves out before the effective date?
A: If the tenant vacates before the effective date of the increase, the increase does not apply. The tenant’s security deposit must be returned per ORS 90.300 within 30 days of move-out. If a new tenant rents the unit, you can set their initial rent at market rate, regardless of what you had planned to charge the departing tenant.
Q4: Can I increase rent if the tenant refuses to sign a new lease?
A: If a tenant is in a month-to-month tenancy (which is the default in Oregon after a fixed-term lease expires), you can increase rent by serving proper written notice. The tenant does not need to sign a new lease. The increase takes effect at the beginning of the next rental period after the 90-day notice window closes. If the tenant refuses to pay the new rent, you can then pursue eviction for nonpayment under ORS 105.105 et seq.
Q5: Is the CPI-U cap the same for every Oregon county?
A: Yes. ORS 90.323 applies statewide. There is no county-level variation or local opt-out. Every landlord in Oregon uses the same national CPI-U percentage for the 12-month period ending September 30. Some cities (like Portland or Eugene) may have additional local regulations, but the state statute is the baseline for all regions.
What You Need to Do Right Now
If you have tenants in month-to-month occupancy in 2026, and their last rent increase was in 2025 or earlier, you may be eligible to increase rent now. Here is what to do:
- Pull your lease files for each property and identify the last rent increase date
- Confirm the current rent amount for each tenant
- Calculate the new rent by multiplying current rent by 1.0249 (2026 cap)
- Prepare written rent increase notices stating current rent, new rent, effective date (at least 90 days out), and the increase percentage
- Serve notice via certified mail or personal delivery, and keep delivery receipts
- Update your property management records with the new rent and effective date
If you manage multiple units across Oregon, this process can be complex, especially if different tenants have different lease anniversary dates. Many self-managing landlords use property management software to automate rent tracking and notice generation, reducing the risk of missing deadlines or violating the CPI-U cap.
Staying Compliant as Rules Change
Oregon’s rent control landscape could change. Monitor these sources for updates:
- Oregon Legislature (oregonlegislature.gov): Search for bills affecting ORS 90.323
- Oregon Bureau of Labor and Industries (boli.oregon.gov): Enforcement guidance and complaints
- Oregon Residential Tenants Association (ortenant.org): Advocacy updates and legal resources
- Local landlord associations: Portland Landlord Association, Lane County Landlord Association, etc.
Annually, review the September CPI-U figure (released in October) to confirm the cap for the following year before serving any rent increase notices.
Disclaimer
This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney licensed in Oregon for guidance specific to your situation. Rent increase laws are complex and change periodically. Property owners should verify current statutes and BOLI guidance before serving any notice to tenants.