Oregon Rent Increase Cap: 7% + CPI Rule Under SB 608 — Landlord Compliance Guide (2026)

Overview: Oregon’s Statewide Rent Increase Cap

On January 1, 2020, Oregon enacted Senate Bill 608 (now codified as ORS 90.323), establishing the first statewide rent increase cap in the nation. This law restricts annual rent increases to a maximum of 7% plus the Consumer Price Index (CPI) for the Portland-Salem-Eugene area.

For self-managing landlords, this statute is non-negotiable. Violations expose you to:

• Tenant lawsuits for actual damages plus three additional months’ rent
• Attorney fee recovery by the tenant
• Complaints filed with Oregon BOLI resulting in investigation and potential enforcement action
• Loss of credibility in future lease disputes

Unlike many rent control regimes that apply only to specific jurisdictions or older buildings, ORS 90.323 applies statewide to all residential tenancies—from Portland to rural Eastern Oregon, from luxury apartments to single-family rentals. The only exceptions are specific property types (see below), and even then, local ordinances may impose stricter limits.

This guide walks you through the precise requirements, calculation methodology, notice procedures, and penalties you must understand to remain compliant.

What ORS 90.323 Actually Says: Statute and Scope

Applicable Properties and Tenancies

ORS 90.323 applies to all residential tenancies in Oregon, including:

• Single-family rental homes
• Condominiums and townhomes
• Apartment buildings (2-75 units and larger)
• Mobile home parks
• Room rentals within a dwelling

The statute applies regardless of whether the tenant has occupied the unit for one year or ten years, and regardless of the initial rent amount.

Properties Explicitly Exempt from ORS 90.323

The following property types are exempt from the 7% + CPI cap under ORS 90.323(1):

• Owner-occupied single-family homes or duplexes — where the landlord owns and occupies one of the units as their primary residence
• New construction — the first tenancy in a dwelling unit constructed after January 1, 2020, for the first five years of occupancy by the first tenant. After five years, the cap applies to subsequent tenancies and lease renewals
• Residential properties where the owner owns five or fewer single-family homes, condos, or mobile home lots — Oregon’s small-landlord exemption, effective through December 31, 2024 (see 2024 amendments below)

Critical compliance point: If you believe your property qualifies for an exemption, document that exemption in your files before issuing a lease or notice of increase. Exemptions must be claimed affirmatively; you cannot discover them during litigation.

2024 Amendment: Small Landlord Exemption Expiration

For years, Oregon law exempted owners of five or fewer residential units from the rent increase cap. That exemption expired on December 31, 2024. Effective January 1, 2025, the 7% + CPI cap applies to all residential properties regardless of the number of units owned—with the limited exceptions noted above.

If you own 2-75 units (LeaseBase’s typical customer base), you have been subject to ORS 90.323 since 2020, but if you own fewer than six units, your exemption has now ended. Update your internal compliance procedures immediately.

The 7% + CPI Formula: How to Calculate Your Maximum Increase

Understanding the Formula

The maximum rent increase is calculated as:

Maximum Increase = (7% + CPI Percentage) × Current Rent

For example, if the CPI for the Portland-Salem-Eugene area is 3.2%, the maximum increase would be:

10.2% × Current Rent = Maximum Increase

This is not a fixed 7% across the board. The CPI component changes every year, so your maximum allowable increase recalculates annually.

Which CPI Index Does Oregon Use?

ORS 90.323(1)(b) specifies that the CPI used is the Consumer Price Index for All Urban Consumers (CPI-U), published by the U.S. Bureau of Labor Statistics (BLS), specifically for the Portland-Salem-Eugene, OR-WA area (Series ID: CUUR49RSA0).

The law uses the average CPI for the 12 months ending in August of the prior calendar year. This means:

• For increases effective January 1, 2026: The applicable CPI was the average of August 2024 through July 2025
• For increases effective January 1, 2027: The applicable CPI will be the average of August 2025 through July 2026
• For increases effective January 1, 2028: The applicable CPI will be the average of August 2026 through July 2027

The Oregon Department of Consumer and Business Services publishes the applicable CPI percentage each year on or before December 1. You can access this official determination at oregon.gov/employes-hr under the CPI Schedule or contact your local BOLI office.

Practical Calculation Example (July 2026)

Assume:

• Current monthly rent: $1,500
• Applicable CPI for 2026 increases: 2.9%
• Maximum increase: 7% + 2.9% = 9.9%
• Dollar increase: 9.9% × $1,500 = $148.50
• New maximum rent: $1,500 + $148.50 = $1,648.50

You cannot increase the rent to $1,648.51. The calculation must not exceed the statutory formula. If your calculation results in a fraction of a cent, round down to the nearest cent to stay compliant.

Compounding Effect and Multi-Year Increases

The 7% + CPI cap applies annually. Each year’s increase is calculated on the current rent, not the original rent. This creates a compounding effect over multiple years.

Year-by-year example (assuming stable 2.9% CPI):

• Year 1 (2024): $1,500 × 9.9% = $148.50 → New rent: $1,648.50
• Year 2 (2025): $1,648.50 × 9.9% = $163.00 → New rent: $1,811.50
• Year 3 (2026): $1,811.50 × 9.9% = $179.34 → New rent: $1,990.84

Note: You are not required to increase rent annually. You can increase once every two years, every three years, or not at all. The cap only restricts the amount of increase in any given year; it does not mandate an increase.

Notice Requirements: Timing, Content, and Service

30-Day Written Notice Rule

ORS 90.323(2)(a) requires that any rent increase be preceded by at least 30 days’ written notice before the increase takes effect.

Key compliance points:

• 30 days means 30 calendar days, not business days. If you provide notice on January 1, the earliest effective date is January 31.
• Notice must be in writing. Email, text message, or verbal notice is insufficient. You must deliver written notice via one of the methods specified in ORS 90.160 (see below).
• The notice period runs from the date of service, not the date you draft the notice. If you email notice on January 1 at 11:59 p.m., the 30-day clock starts January 1, not January 2.
• The increase is void if proper notice is not given. Tenants can recover damages plus attorney fees for rent increases imposed without the required notice.

Methods of Service (ORS 90.160)

Written notice of rent increase must be served on the tenant using one of the following methods:

Service Method	Compliance Rules	Proof Required
Hand delivery to tenant	Delivered directly to tenant in person. Confirm they received it.	Written receipt from tenant or witness signature.
First-class mail, postage prepaid, to the address where rent is paid	Must be sent to the address where the tenant pays rent (typically the rental property address). Notice is deemed served three days after mailing.	Certified mail receipt (USPS tracking). Keep a copy of the letter sent.
Email with confirmation of receipt	Only if tenant has agreed in writing to receive notices via email. Confirmation of receipt is required (read receipt must be enabled).	Email with read receipt timestamp or tenant’s written acknowledgment.
Posting on the premises and certified mail	Post notice on the rental unit door and send certified mail. Use if tenant avoids receipt. Notice is deemed served five days after posting and mailing.	Certified mail receipt and dated photograph of posted notice on unit door.

Recommended practice for compliance: Use certified mail with return receipt requested. This creates a paper trail that proves service date beyond dispute. Keep the green receipt card and the certified mail receipt in your lease file for each unit.

Content of the Notice

The notice of rent increase must include the following information:

• The current rent amount
• The new rent amount
• The date the new rent becomes effective (at least 30 days after service)
• A statement that the increase complies with ORS 90.323 or, if exempt, the basis for the exemption
• Contact information for the landlord or property manager
• A notice of tenant rights under Oregon law (see “Notice of Tenant Rights” section below)

Oregon BOLI provides a model notice form. While not legally mandated, using the BOLI form significantly reduces the risk of a notice being deemed defective. You can download the current form at oregon.gov/boli/workers/pages/model-notice-of-rent-increase.aspx.

Notice of Tenant Rights (Required Addendum)

Under ORS 90.323(2)(d), every notice of rent increase must include a summary of tenant rights under Oregon law, including:

• The right to request a meeting with the landlord to discuss the increase
• Information about tenant resources (legal aid, local housing authority contact)
• The right to organize with other tenants
• Contact information for BOLI to file complaints

The Oregon Bureau of Labor and Industries publishes the required statutory notice language. If your notice does not include this language, the notice may be voidable, and you could face a complaint with BOLI.

Local Rent Control Ordinances: When Stricter Rules Apply

Cities with Rent Control Caps Lower Than 7% + CPI

Several Oregon cities have enacted local rent control ordinances that impose stricter limits than the state 7% + CPI cap. When local and state law conflict, the lower cap applies. You must comply with whichever rule is more restrictive.

City / Jurisdiction	Local Cap	Statute / Ordinance	Additional Restrictions
Portland	5% or CPI, whichever is lower	Portland City Code 30.01.085	Just cause required for non-renewal; additional notice requirements.
Eugene	5% per year (no CPI allowance)	Eugene City Code 29.260–29.285	Just cause for non-renewal; exemptions for new construction (5 years) and owner-occupied.
Salem	7% + CPI (state default)	ORS 90.323	No additional local ordinance; state law applies.
Corvallis	7% + CPI (state default)	ORS 90.323	No local ordinance; state law applies.

Compliance trigger: Before increasing rent on any unit, verify the city where the unit is located. If the unit is in Portland, the 5% or CPI (whichever is lower) cap applies, not the state 7% + CPI. Many landlords unknowingly over-increase by relying on state law in Portland.

Just Cause Requirements in Local Ordinances

Portland and Eugene not only have lower rent caps—they also restrict lease non-renewals. Landlords cannot simply refuse to renew a lease to circumvent rent control caps. A non-renewal is only valid if based on one of several “just causes” (e.g., owner occupancy, property sale, rehabilitation, repeated lease violations).

If you own units in Portland or Eugene, consult the local city code and consider whether a non-renewal based on just cause is available before attempting to terminate a tenancy to reset rent.

Calculating and Recording the 2026 CPI for Increases Effective January 1, 2027

As of July 2026, you may already be planning 2027 rent increases. Here’s the timeline for obtaining the correct CPI:

• August 2025–July 2026: The CPI-U data is being published monthly by BLS. The average of these 12 months will determine the CPI percentage for 2027 increases.
• On or before December 1, 2026: Oregon Department of Consumer and Business Services will publish the official CPI percentage for 2027 increases.
• Between December 1, 2026, and December 31, 2026: You can begin serving 30-day notice of increases effective January 1, 2027, using the official state CPI figure.

Do not estimate or use preliminary BLS data. Wait for the official state determination published by December 1. Using an incorrect CPI percentage, even if it’s close, can expose you to damages and complaints.

Penalties for Non-Compliance: Damages and Enforcement

Tenant Damages for Illegal Increases

If you impose a rent increase that violates ORS 90.323, the tenant can sue you under ORS 90.323(3). The remedy structure is severe:

• Damages equal to three months’ rent at the illegal increase amount (not just the difference between the illegal and legal increase)
• Plus actual damages (money the tenant paid above the legal maximum)
• Plus reasonable attorney fees and court costs (the tenant does not bear the cost of litigation)

Example: You increase rent by 12% (exceeding the 9.9% cap) on a tenant paying $1,500/month. The illegal amount is $180/month. Damages owed would be:

• Three months’ × $180 = $540 (statutory damages)
• Plus 12 months of actual overpayment (if suit is filed after 12 months of the illegal increase) = $2,160
• Plus tenant’s attorney fees (typically $5,000–$15,000+ depending on case complexity)
• Plus court costs
• Total exposure: $7,700+

This is not a situation where the tenant’s attorney might take a pass due to small damages. Even a $100/month overcharge creates $300 in statutory damages plus attorney fees, making it economical for legal representation.

Oregon Bureau of Labor and Industries (BOLI) Enforcement

Tenants can also file a wage and hour complaint with Oregon BOLI. BOLI investigates violations of ORS 90.323 as a labor standards issue.

BOLI complaint outcome: BOLI can investigate, determine that a violation occurred, and issue an order requiring the landlord to refund illegal increases plus penalties. Failure to comply with a BOLI order can result in:

• Wage and hour liens against the landlord’s property
• Collection action by BOLI on behalf of the tenant
• Civil penalties in addition to refunds owed

BOLI contact information: Oregon Bureau of Labor and Industries, Wage and Hour Division, (503) 731-4070 or oregon.gov/boli.

Criminal Penalties (Limited)

ORS 90.323 does not impose criminal penalties. However, repeated or willful violations could potentially trigger unfair practice claims under Oregon consumer protection law or trigger increased scrutiny from BOLI and local housing authorities, damaging your reputation as a landlord.

Procedural Compliance Checklist for Rent Increases

Use this checklist every time you increase rent:

1. Verify property exemption status. Is the property owner-occupied, newly constructed (within 5 years), or otherwise exempt? If exempt, document the exemption in the lease file.
2. Identify the property city and jurisdiction. Check if local rent control laws apply (e.g., Portland 5% cap, Eugene 5% cap). If local laws are stricter than state law, use the local cap.
3. Obtain the current official CPI percentage. Use the Oregon Department of Consumer and Business Services’ published CPI for the applicable year. Do not estimate.
4. Calculate the maximum allowable increase. Maximum = (7% + CPI%) × Current Rent. Round down to the nearest cent.
5. Decide the increase amount. You are not required to increase to the maximum. You can increase less or not at all. But you cannot exceed the maximum.
6. Draft the notice of rent increase. Include current rent, new rent, effective date, and the full Oregon BOLI notice of tenant rights addendum.
7. Select service method. Certified mail with return receipt is recommended for proof of service. Mail at least 31 days before the effective date.
8. Serve the notice. Do not serve the notice less than 30 days before the effective date.
9. Document service. Keep the certified mail receipt card, the return receipt, and a copy of the notice in your lease file.
10. Track the effective date. Update your accounting system to reflect the new rent amount starting on the effective date. Do not collect the old amount after the effective date.
11. Store records for at least 6 years. BOLI investigations often go back several years. Keep all notices of increase, payment records, and service proofs.

Special Situations and Edge Cases

Month-to-Month Tenancies

Month-to-month tenants have the same protections as fixed-term lease holders. A rent increase on a month-to-month tenant is subject to the 7% + CPI cap and requires 30 days’ written notice. The increase takes effect at the end of the 30-day notice period.

Fixed-Term Leases: Can You Increase Mid-Lease?

Generally, no. If a tenant has a fixed-term lease (e.g., a one-year lease), you cannot increase the rent during the lease term unless the lease specifically allows it. The cap applies when you seek to increase rent at renewal or the end of the lease term.

However, if the lease contains a clause allowing annual adjustments (e.g., “rent may increase by up to 7% annually”), you must still comply with the 30-day notice requirement and cannot exceed the 7% + CPI formula even if the lease language is broader.

Utilities, Maintenance Fees, and Pass-Through Charges

The 7% + CPI cap applies to base rent. However, you may separately increase utility charges, parking fees, pet deposits, or other pass-through costs—subject to the requirement that such charges must be reasonable and clearly disclosed to the tenant.

Be careful not to disguise a rent increase as a fee increase. For example, if you increase “rent” by 5% and “maintenance fee” by 10%, the combined effect may violate the cap depending on how the charges are structured. Consult your lease language and consider local tenant protections.

Lease Renewal vs. New Tenancy

The cap applies to both lease renewals (existing tenants) and new tenancies. You cannot charge a new tenant significantly more than the previous tenant paid without documenting a legitimate market rate change. Discriminatory pricing based on protected class (race, disability, familial status, etc.) violates fair housing law regardless of the rent cap.

Documentation and Record-Keeping Requirements

Maintain the following records for each unit for at least six years:

• Lease agreements — signed by both parties, showing start date and initial rent
• Notices of rent increase — original copy with date served and service method
• Proof of service — certified mail receipts, email read receipts, or signed acknowledgments
• Payment records — showing rent paid, date received, and amount for each month
• CPI documentation — the official state determination of the applicable CPI percentage used for each increase calculation
• Exemption documentation — if claiming exemption (new construction, owner-occupied, small landlord prior to 2025), maintain documentation supporting the exemption

Digital record-keeping is acceptable and recommended. A property management platform like LeaseBase Lease Operations can automatically track notice timelines, store documents, and flag compliance deadlines. If you are managing multiple units, automated documentation reduces the risk of missing a 30-day notice deadline or losing proof of service.

Frequently Asked Questions (FAQ)

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

A: The statute does not prohibit multiple increases per calendar year, but each increase is subject to the 7% + CPI cap. For example, if you increase rent on January 1 by the maximum amount, you cannot increase again until the following January 1 using the updated CPI. Practically, most landlords increase once per year on the lease anniversary or January 1. Frequent increases invite tenant pushback and legal challenges.

Q: What if I provide notice but the tenant contests the increase in court?

A: If a tenant sues you after receiving notice, you must prove that your increase complies with ORS 90.323. You bear the burden of proving compliance—not the tenant. This means you must have calculated the increase correctly, documented the CPI used, and provided proper notice. Burden of proof is on you. Keep all documentation organized and accessible.

Q: If I own property in both Portland and Eugene, do I use different rent caps for each?

A: Yes. Portland has a 5% or CPI (whichever is lower) cap. Eugene has a 5% flat cap. If you own units in both cities, calculate the maximum increase for each city using its local ordinance. You cannot average them or apply the state cap uniformly.

Q: What happens if I discover I calculated an increase incorrectly after issuing notice?

A: If you notice the error before the increase takes effect, immediately notify the tenant in writing with a corrected notice. If you have already collected the overage, offer to refund the difference. Document the correction. If you wait until after the tenant sues to correct the error, a court is unlikely to find the correction sufficient to defeat the tenant’s claim for damages and attorney fees.

Q: Do I need to use the Oregon BOLI template for the notice of rent increase?

A: The template is not legally required, but it is strongly recommended. The template includes all required statutory language (notice of tenant rights, CPI explanation, contact information). If your custom notice omits required language, a tenant can argue the notice is defective and void, forcing you to start the 30-day clock over. Use the BOLI template.

Integration with Lease Operations and Compliance Systems

Managing rent increases across multiple units manually is error-prone. Using a dedicated platform to track leases, notice timelines, and compliance deadlines significantly reduces the risk of non-compliance.

LeaseBase Compliance Engine can automatically calculate allowable rent increases based on the property location, verify the applicable CPI, and flag when 30-day notice periods are approaching. Lease Operations stores all notices and service records digitally, creating an auditable trail if BOLI or a tenant initiates a complaint.

For landlords managing 2-75 units, a dedicated compliance and operations platform costs significantly less than the potential liability from a single incorrectly calculated increase and is far simpler than tracking multiple CPI rates, jurisdictions, and notice deadlines in spreadsheets.

Conclusion: The Bottom Line for Oregon Landlords