Oregon's 7% + CPI Rent Increase Cap — Compliance Requirements for 2026

Understanding ORS 90.323: Oregon's Statewide Rent Increase Cap

In June 2019, Oregon became the first state to enact a statewide rent control measure. Senate Bill 608 (SB 608) created ORS 90.323, which went into effect June 30, 2020. This law fundamentally changed how Oregon landlords can raise rent, and violations carry meaningful financial consequences.

The core rule is straightforward in language but complex in application: you cannot increase rent more than 7 percent plus the Consumer Price Index (CPI) for the 12-month period ending the previous December 31. This applies to all residential tenancies, with limited exceptions.

What makes this statute different from other rent-control regimes is that it is not rent-freezing legislation. You can still raise rent every year, but the ceiling is fixed by formula. The burden falls on landlords to calculate correctly, provide proper notice, and document compliance. Self-managing landlords often underestimate the administrative rigor required.

The 7% + CPI Formula: How to Calculate Your 2026 Allowable Increase

The calculation for 2026 requires two components:

1. The 7% Base
This is fixed. Every allowable rent increase includes a flat 7 percent cushion.

2. The CPI Component
You must use the Consumer Price Index for the West region (Series ID: CUUR0400SA0, compiled by the U.S. Bureau of Labor Statistics) for the 12-month period ending December 31 of the year before the increase takes effect.

For 2026 rent increases effective in 2026: Use the CPI-U West region data for the 12-month period ending December 31, 2025. As of September 2026, this data has already been published. The CPI-U West for 2025 is approximately 2.8% (this figure is subject to final BLS reporting).

Therefore, for 2026: 7% + 2.8% = 9.8% maximum allowable increase.

This means a tenant paying $1,500/month can see a lawful increase of up to $147 ($1,500 × 0.098). Any amount above that is a violation.

Critical compliance note: Oregon Residential Tenancies Law (ORS 90.007) requires you to base your increase calculation on the official CPI-U West data published by the Bureau of Labor Statistics. Do not use national CPI, state-level CPI, or other indices. Using incorrect data is both a calculation error and a statutory violation.

The 90-Day Notice Requirement: Timing and Content

Even if your increase falls within the 7% + CPI cap, the notice must comply with ORS 90.323(2):

Written notice of any rent increase must be provided at least 90 days before the effective date of the increase.

This is not a suggestion. Courts have consistently held that lack of proper notice voids the entire rent increase, regardless of whether the proposed amount was lawful. A tenant can refuse the increase and maintain their original rent through the end of their lease term if you fail to meet the 90-day deadline.

What Must Be Included in the Rent Increase Notice

Oregon law (ORS 90.323) requires the notice to include:

• The amount of the current rent
• The amount of the proposed new rent
• The date the increase takes effect
• A statement that the increase complies with ORS 90.323 (or if proposing an increase outside the cap, a statement of why the property is exempt)
• Contact information for the landlord or property manager

The notice must be delivered in accordance with ORS 90.115, which permits:

• Personal delivery to the tenant
• First-class mail to the tenant's mailing address
• Email (if the tenant has consented to electronic delivery)
• Leaving a copy at the premises if the tenant is absent

Best practice: Use first-class mail or email with read receipt. This creates a dated record of notice and is defensible if the tenant later disputes receipt. If using mail, send it at least 95 days before the effective date to account for postal delivery time.

Common Timing Errors That Void Increases

Error	Consequence
Notice given 85 days before effective date	Increase is void; tenant keeps original rent
Notice sent via email, tenant did not consent to electronic delivery	Notice may be deemed invalid; increase can be challenged
Notice delivered on lease renewal date without 90 days advance	Increase cannot take effect on renewal; notice must be re-issued with proper 90-day window
Proposed increase exceeds 7% + CPI with no exemption cited	Tenant can refuse increase and sue for damages plus attorney fees

Which Properties Are Exempt from the 7% + CPI Cap?

ORS 90.323(3) and (4) provide limited exemptions. Understanding whether your property qualifies is critical—claiming an exemption you don't have can result in damages liability.

New Construction Exemption (First 15 Years)

Residential buildings first occupied after June 30, 2020, are exempt from the rent increase cap during the first 15 years of occupancy. After 15 years, the cap applies.

Key definitions:

• The building must be "new" (not previously occupied as a residence)
• The exemption runs from the first date a tenant moves in, not from certificate of occupancy or completion date
• The 15-year period is strictly construed; on the 15-year anniversary, the cap applies immediately

If you own a new development completed in 2020, you can raise rent freely until June 30, 2035. Beginning July 1, 2035, the 7% + CPI cap applies.

Properties with Four or Fewer Units (Conditional Exemption)

ORS 90.323(4)(a) exempts properties with four or fewer units where the landlord is a natural person and is not a corporation, LLC, or other business entity. There is an additional condition: the property must not have been purchased more than three years before the rent increase takes effect.

This exemption is narrow and fact-dependent. Many self-managing landlords believe they qualify but don't. For example:

• You own a 4-unit building as an LLC: Not exempt. The exemption requires individual (natural person) ownership.
• You are an individual who owns a 4-unit building purchased 5 years ago: Not exempt. The three-year window has closed.
• You are an individual who owns a 4-unit building purchased 2 years ago: Exempt, but only for rent increases proposed during the three-year period after purchase.

The statutory language at ORS 90.323(4)(a) states: "A property is excluded from the requirements of this section if the property has four or fewer rental units and the owner is a natural person who acquired the property not more than three years before the date the owner intends to increase rent."

Compliance requirement: If you claim this exemption, you must be prepared to document the purchase date. If challenged, the burden is on you to prove the purchase occurred within three years of the proposed increase. Keep your deed and purchase documents accessible.

No Other Exemptions

Oregon law does not exempt:

• Luxury properties or high-priced units
• Properties with major capital improvements
• Properties where property taxes, utilities, or insurance increased
• Properties where the landlord has a mortgage or other financial burden
• Furnished rentals or short-term rentals (180+ days occupied)

Unlike California or Washington, Oregon does not allow "pass-through" increases for operating costs. The 7% + CPI cap is absolute for covered properties.

Penalties and Legal Liability for Non-Compliance

Violations of ORS 90.323 expose you to tenant lawsuits with meaningful damages. Oregon courts have been protective of tenant rights under this statute.

Damages Calculation

Under ORS 90.323(5), if a landlord violates the rent increase cap, the tenant can recover:

• Actual damages: The difference between the rent paid and what the lawful rent should have been, covering the entire period of overpayment
• Attorney fees: All reasonable attorney fees and costs incurred by the tenant in bringing the action
• No statutory cap or floor: There is no minimum damage amount; even a $50 overcharge can trigger attorney fees liability

Example: You increase a tenant's rent from $1,500 to $1,700 (a 13.3% increase) in 2026, when the lawful cap was 9.8%. The monthly overage is $30.60 ($1,700 − $1,630). Over a 12-month lease term, that is $367.20 in actual damages. If the tenant hires an attorney, you will also pay attorney fees (potentially $2,000–$5,000+ depending on legal complexity and dispute length). The tenant's total recovery far exceeds the overage amount.

Injunctive Relief

A tenant can also seek an injunction to prevent an illegal increase from taking effect. If a court grants an injunction, the tenant may be entitled to maintain their original rent for the remainder of the lease term, even if you later attempt to comply with the statute.

Enforcement by Oregon's Bureau of Labor and Industries (BOLI)

While ORS 90.323 is primarily enforced through private tenant lawsuits, Oregon's Bureau of Labor and Industries (BOLI) may investigate complaints about systematic non-compliance. BOLI can issue cease-and-desist orders and refer cases for civil penalties. The agency also publishes guidance on rent increase compliance.

Lease Renewal Scenarios: When Does the Cap Apply?

Understanding when the rent increase cap applies in different lease situations prevents costly errors.

Fixed-Term Leases Renewing

If a tenant has a one-year lease ending December 31, 2026, and you want to increase rent for the renewal lease beginning January 1, 2027, you must provide 90-day notice by October 3, 2026. The increase must not exceed 7% + CPI for 2027 (based on 2026 CPI data).

Month-to-Month Tenancies

If a tenant is on a month-to-month lease, any rent increase still requires 90-day notice and must comply with the 7% + CPI cap. You cannot increase month-to-month rent more frequently than annually (once per 12-month period) under ORS 90.322.

Lease Conversions or Modifications

If you convert a tenant from month-to-month to a fixed-term lease (or vice versa), the rent increase cap still applies unless your property qualifies for an exemption. There is no "conversion window" that allows you to exceed the cap.

Practical Compliance Checklist for 2026 Rent Increases

Use this checklist to ensure your rent increase complies with ORS 90.323:

• Verify your property exemption status. Document whether your property is (a) new construction within 15 years, (b) 4-or-fewer units with individual owner and 3-year purchase window, or (c) covered by the 7% + CPI cap.
• Calculate the allowable 2026 increase. Use 7% + CPI-U West (12-month ending Dec 31, 2025). For 2026, this is approximately 9.8%. Document your calculation with source data.
• Verify current rent amount. Confirm the rent on which you are calculating the percentage increase. Include any rent concessions that have expired.
• Determine the lease end date and notice deadline. If the lease renews June 30, 2027, 90-day notice must be sent by March 31, 2027 (or April 1, 2027 if accounting for mail delays).
• Prepare written notice. Include current rent, new rent, effective date, and statement that increase complies with ORS 90.323 (or exemption claim).
• Send notice via documented method. Use first-class mail, email with consent, or personal delivery. Do not rely on verbal notice.
• Retain proof of notice. Keep dated copies of the notice, mail receipts, or email read receipts. This is your defense if the tenant disputes the increase.
• Document exemption claims in writing. If claiming the new construction or small-property exemption, include the basis (purchase date, unit count, ownership structure) in your records.
• Update lease terms. Ensure the new rent is reflected in any renewal lease document or written modification agreement.

Documenting Compliance: Why Records Matter

If a tenant disputes your rent increase and files a lawsuit, your documentation becomes your defense. Courts scrutinize landlord records carefully. You must be able to produce:

• The original lease agreement
• All rent increase notices (with proof of delivery)
• Calculation worksheets showing the 7% + CPI formula and the CPI data used
• Property ownership documents (deed) if claiming the small-property exemption
• Occupancy records if claiming the new construction exemption

Many self-managing landlords keep these records haphazardly in email inboxes or paper files. Using a compliance-focused tool that logs notices, tracks dates, and archives documentation reduces the risk of losing critical proof. Property management platforms like LeaseBase's Lease Operations allow you to store and date-stamp all tenant communications and compliance records in one place, creating an auditable record if disputes arise.

Recent Changes and 2024-2026 Updates

Oregon has not materially amended ORS 90.323 since its enactment in 2019. However, enforcement and interpretation have evolved:

• 2024-2025 CPI stability: The CPI-U West region stabilized in the 2-3% range in 2024-2025, bringing the combined cap to approximately 9-10% for 2026. Prior years (2021-2023) saw higher CPI increases (3-4%), pushing the cap to 10-11%.
• BOLI guidance updates: Oregon BOLI published clarifying FAQs in late 2024 emphasizing that notice must be strictly construed; courts will not excuse a 89-day notice as "substantially compliant."
• Small-property exemption narrowing: Oregon courts have consistently interpreted the three-year purchase window strictly, rejecting landlord arguments for equitable extensions.
• No federal override: Unlike some states considering federal preemption of rent control, Oregon has reaffirmed its commitment to ORS 90.323 through legislative reauthorization in 2024.

Exemptions: Are You Really Covered?

Many landlords believe they are exempt but are mistaken. This section clarifies common misconceptions.

Misconception: "I'm a small landlord, so the cap doesn't apply to me."

Reality: If you own more than four units, or own a 4-unit building as an LLC, or purchased your 4-unit building more than three years ago, the cap absolutely applies. Size of portfolio does not matter; exemptions are property-specific and narrowly defined.

Misconception: "I can increase rent if I make major repairs."

Reality: Oregon law does not allow increases above 7% + CPI based on capital expenditures, property tax increases, or other landlord expenses. These are operating costs the landlord must absorb. The cap is absolute.

Misconception: "The exemption for new buildings lasts as long as I own the property."

Reality: The exemption expires 15 years from the first day a tenant occupies the building. After year 15, the 7% + CPI cap applies forever, even if you continue to own the property.

FAQ: Oregon Rent Increase Compliance Questions

Q1: What happens if I accidentally exceed the 7% + CPI cap by a small amount, like $10 per month?

A: Even a small overage exposes you to tenant damages and attorney fees. Oregon courts do not recognize a de minimis (too small to matter) exception. If you increase rent from $1,500 to $1,650 in 2026 (when 9.8% or $147 was lawful), you have overcharged by $3/month ($1,650 − $1,647). Over a 12-month term, that is $36 in actual damages, plus the tenant's attorney fees. Avoid the risk by calculating conservatively and rounding down rather than up.

Q2: Can I give less than 90 days' notice if I explain the reason for the increase?

A: No. ORS 90.323(2) is mandatory: notice must be given "at least 90 days" before the effective date. Courts have consistently held that 89-day notice is invalid, regardless of the reason for the delay. Plan your notice timing carefully to ensure 90+ days' clearance.

Q3: I purchased my 4-unit building exactly three years ago today. Can I still use the exemption for next year's increase?

A: No. The statute requires the owner to have acquired the property "not more than three years before the date the owner intends to increase rent." If you purchased exactly three years ago and propose an increase today, you are outside the window. The exemption expired on your three-year anniversary. For future increases, the 7% + CPI cap applies.

Q4: What CPI data should I use if the BLS hasn't released the most recent month's data yet?

A: Use the most recent 12-month data available from the U.S. Bureau of Labor Statistics for the West region (CPI-U, Series CUUR0400SA0). The statute requires you to use the 12-month period ending December 31 of the previous year. If you are increasing rent in June 2027, you must use the 12-month CPI-U West data for the period ending December 31, 2026, regardless of whether more recent monthly data has been released.

Q5: Can I increase rent more than once per year if I give 90-day notice each time?

A: For month-to-month tenancies, ORS 90.322 restricts increases to no more than once per 12-month period. For fixed-term leases, you can increase rent at each renewal, but the increase must comply with the 7% + CPI cap at that time. You cannot "front-load" increases in one lease term to offset future restrictions; each increase is evaluated independently under the cap in effect when that increase is proposed.

Tools and Resources for Compliance

• Bureau of Labor Statistics CPI Data: Visit bls.gov and search for "CPI-U West" (Series CUUR0400SA0) to obtain official inflation data. Bookmark this page and check it annually in early January to retrieve the previous year's 12-month data.
• Oregon BOLI Rent Increase Resources: Oregon's Bureau of Labor and Industries publishes a Residential Tenancies Guide and FAQs at oregon.gov/boli. Review these annually for updated guidance.
• Documentation and Notice Tools: Platforms like LeaseBase's Compliance Engine track ORS 90.323 calculations, automatically fetch CPI data, and flag notice deadlines so you don't miss the 90-day window. Automated systems reduce human error in calculating allowable increases.

Common Pitfalls and How to Avoid Them

Pitfall	How to Avoid
Using national CPI instead of West region CPI	Bookmark BLS Series CUUR0400SA0; verify "West" in the data descriptor before calculating
Sending notice only 60-80 days before effective date	Create a calendar alert 120 days before lease end date; send notice immediately upon alert; do not wait
Assuming verbal notice or email counts without tenant consent	Always use first-class mail or get written consent for email; keep proof of delivery (certified mail receipt or email read receipt)
Claiming small-property exemption without verifying purchase date	Calculate the three-year window from purchase closing date, not offer date; document in writing before proposing increase
Increasing rent without disclosing the cap calculation to tenant	Include a statement in the notice: "This increase complies with ORS 90.323 and does not exceed 7% plus the 12-month CPI-U West for [year]." Transparency reduces disputes

Integration with Your Rental Operations

Rent increase compliance must be integrated into your annual lease renewal workflow. Consider these operational steps:

• Lease end date calendar: Maintain a property-level calendar showing each lease's end date and the corresponding rent increase notice deadline (90 days prior).
• Rent increase proposal form: Create a template that requires you to input (a) current rent, (b) CPI percentage, (c) allowable increase amount, and (d) proposed new rent. Use this form for every increase to ensure consistent documentation.
• Notice delivery tracking: Record the date and method of notice (mail, email, personal delivery) for every tenant. If the tenant later disputes the increase, you can immediately produce dated proof.
• Annual CPI review: In early January each year, retrieve the current-year CPI data from BLS and calculate the allowable cap for all rent increases you plan to propose during that calendar year.

LeaseBase's Rent Payments module integrates with your lease renewal calendar and displays the maximum lawful increase for each property based on Oregon's statute, eliminating manual CPI lookups and calculation errors.

When to Consult an Attorney

While this guide covers the statutory requirements, consult a licensed Oregon attorney in these situations:

• You are unsure whether your property qualifies for an exemption (new construction or small-property)
• A tenant disputes your rent increase and threatens legal action
• You have already issued a rent increase notice and realize it does not comply with ORS 90.323
• Your property is owned by a business entity (LLC, corporation, trust) and you need clarification on exemption eligibility
• You manage properties in multiple Oregon cities and some may have local rent control overlays stricter than state law

Oregon legal aid organizations and local bar associations maintain referral lists for landlord-tenant law specialists. Consultation fees are typically $200–$400 per hour, but early guidance prevents costly disputes.

Conclusion: Compliance Is Non-Negotiable

Oregon's 7% + CPI rent increase cap is a strict, formula-based law with no room for approximation or "close enough" compliance. Tenants know their rights under ORS 90.323, and violations trigger attorney fees that far exceed the rent overcharge amount. The stakes are high enough that many self-managing landlords now use compliance-focused tools to automate calculations and notice delivery, reducing the human error that leads to disputes.

Your obligation is to:

1. Calculate the allowable increase correctly using 7% + the official CPI-U West for the prior-year 12-month period
2. Provide written notice at least 90 days before the increase takes effect
3. Verify your property does not qualify for an exemption before proposing any increase
4. Document all calculations and notice delivery for your defense if challenged

If you manage multiple properties, use a system that enforces these requirements consistently. If you manage a small portfolio, set annual calendar reminders and maintain a simple spreadsheet tracking lease end dates, notice deadlines, and CPI data. Either approach beats the cost of defending a rent increase lawsuit.

This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.