Key Takeaways
- Oregon’s statewide rent cap is 7% + CPI annually — effective statewide under ORS 90.323 (SB 608), with no exemptions for new construction or single-family rentals after January 1, 2024
- CPI is calculated using the West-South Central region (PCE index) — Oregon uses the Personal Consumption Expenditures price index, not the more common CPI-U, resulting in different percentage calculations than federal inflation rates
- Rent increases require 90-day written notice minimum — delivered to tenant at least 90 days before the effective date; failure to comply can result in $200 per day penalties plus actual damages under ORS 90.385
- No exemptions exist under state law — the 7% + CPI cap applies to all residential tenancies, including single-family homes, duplexes, and new construction; local rent control laws may be stricter but cannot exceed this statewide cap
- Landlords who violate the cap face statutory damages of $200 per day — plus treble (triple) damages if the violation is deemed intentional, plus attorney fees and court costs
- The cap resets on each lease renewal or anniversary date — not on a calendar-year basis; timing matters for compliance calculations and notice delivery
What Is Oregon’s Rent Increase Cap?
On January 1, 2020, Oregon became the first state to adopt a statewide rent control law. That law, known as SB 608 and codified in ORS 90.323, caps the amount landlords can increase rent in any 12-month period to 7% plus the consumer price index (CPI).
Unlike many states that allow unlimited rent increases, Oregon’s cap applies uniformly across all 36 counties and all property types. There are no exemptions for new construction, owner-occupied buildings, single-family rentals, or properties in rural areas. If you own rental property in Oregon and accept rent from a tenant, ORS 90.323 applies to you.
This law fundamentally changed how Oregon landlords price rent. Before 2020, landlords could raise rent by any amount allowed by the lease or local law. Now, the state law acts as a hard ceiling. Even if your lease says you can raise rent by 15%, Oregon law limits you to 7% + CPI.
Understanding the 7% + CPI Formula
How the Calculation Works
The formula is straightforward but the index choice matters:
Maximum Allowable Increase = 7% + (Current Year PCE Index – Prior Year PCE Index)
Oregon uses the Personal Consumption Expenditures (PCE) price index for the West-South Central region, not the Consumer Price Index for All Urban Consumers (CPI-U) that most people associate with inflation. This distinction is critical because PCE inflation rates have historically run lower than CPI-U rates.
For example:
| Year | PCE Index (West-South Central) | Annual Change | Max Rent Increase |
|---|---|---|---|
| 2024 | 137.2 | 2.1% | 9.1% |
| 2025 | 140.3 | 2.3% | 9.3% |
| 2026 | 142.8 | 1.8% | 8.8% |
Note: These figures are illustrative. Actual PCE indices are published by the U.S. Bureau of Economic Analysis. Verify current rates through the Federal Reserve or Oregon Department of Consumer and Business Services before calculating increases.
Finding the Correct PCE Index
Oregon’s Department of Consumer and Business Services (DCBS) publishes the allowable rent increase percentage each year, typically in December for the following year. Landlords should verify the official percentage through:
- Oregon DCBS official website (oregon.gov/dcbs)
- The rental housing section of the DCBS website
- Published notices from the Oregon Attorney General’s office
Do not calculate the CPI index yourself unless you have confirmed the exact methodology. A calculation error that results in an increase exceeding the lawful cap exposes you to statutory damages.
Who Must Comply With ORS 90.323?
Covered Tenancies
ORS 90.323 applies to all residential tenancies in Oregon except those specifically exempted by statute. Covered properties include:
- Single-family homes and cottages
- Apartments and multi-unit buildings
- Manufactured homes and mobile home parks
- Condominiums and townhouses
- New construction (no exemption exists)
- Owner-occupied properties (no exemption exists)
Exemptions Under Oregon Law
Very few exemptions exist. ORS 90.323 does not apply to:
- Public housing operated by a housing authority
- Federally subsidized housing (in limited circumstances where federal law preempts state law)
- Transient lodging (hotels, motels, short-term rentals under 30 days)
- Tenancies governed by specific federal programs with their own rent-setting rules
Importantly, there is no exemption for new construction. This differs from many other states’ rent control schemes. If you build a new apartment complex or convert a building to rental use, the 7% + CPI cap applies from day one of the first tenancy.
Local Rent Control in Oregon Cities
Several Oregon cities have adopted local rent control ordinances that are stricter than state law. These include Portland, Eugene, and Salem. In these jurisdictions, the local ordinance controls if it is more restrictive than ORS 90.323. For example, Portland’s rent control ordinance caps increases at 3% + CPI, which is lower than the state cap, so Portland landlords must comply with the 3% + CPI figure.
If you own property in a city with local rent control, verify the local rule before calculating your increase. The more restrictive cap always applies.
Notice Requirements: The 90-Day Rule
Minimum Notice Period
ORS 90.323 requires landlords to provide written notice of a rent increase at least 90 days before the increase takes effect. This is a strict requirement with no exceptions.
The notice period is measured from the date the tenant receives the notice, not the date you mail it. For compliance purposes, assume delivery occurs when the tenant signs for it or 3 business days after mailing via First-Class mail, whichever is earlier.
Notice Content Requirements
Under ORS 90.322 (the statute governing notice), the increase notice must include:
- The current rent amount
- The new rent amount
- The effective date of the increase
- A statement in plain language that the tenant has the right to dispute the increase within 90 days by requesting an informal dispute resolution process
- The contact information for the local rental housing center or tenant advocacy organization
If your notice is missing any required component, it may be deemed invalid, and the increase cannot take effect. A tenant could refuse to pay the increased amount, and you would be unable to pursue an eviction for non-payment if the notice was defective.
Timing Examples
Here are practical scenarios to illustrate the 90-day requirement:
| Scenario | Lease Renewal Date | Notice Must Be Delivered By | Increase Effective Date |
|---|---|---|---|
| Apartment A | January 1, 2027 | October 3, 2026 | January 1, 2027 |
| House B | June 15, 2027 | March 17, 2027 | June 15, 2027 |
| Condo C | September 1, 2026 | June 3, 2026 | September 1, 2026 |
If you miss the 90-day window, you cannot enforce the increase until the next lease anniversary or renewal period. This is a hard deadline with no exceptions for postal delays or tenant unavailability.
Calculating Your Specific Rent Increase
Step-by-Step Compliance Checklist
Use this checklist to ensure your increase complies with ORS 90.323:
- Identify the lease renewal date or anniversary date — this is the date the current lease term ends or the next rent adjustment date in a month-to-month tenancy
- Verify your property’s jurisdiction — is it in Portland, Eugene, Salem, or another city with local rent control? If yes, use the more restrictive local cap
- Obtain the current PCE index figure — verify through Oregon DCBS or the Federal Reserve
- Calculate the allowable increase — use the formula 7% + (current PCE – prior PCE). Round to the nearest tenth of a percent
- Multiply current rent by the percentage — e.g., $1,500 × 0.091 (9.1%) = $136.50 increase, making new rent $1,636.50
- Draft the notice 100+ days before the effective date — do not wait until 90 days; add a 10-day buffer for mail delivery
- Include all required notice language — reference the tenant’s right to dispute resolution and local housing contact information
- Deliver via certified mail with return receipt or hand delivery — obtain proof of delivery
- Document the delivery date — file a copy in your tenant record
- Confirm the increase does not exceed the cap — even if the lease allows higher amounts
Penalties for Non-Compliance
Statutory Damages Under ORS 90.385
If you violate ORS 90.323 by charging rent above the allowable cap, Oregon law provides specific penalties:
- $200 per day for each day of violation — if the overcharge is unintentional or negligent
- Treble damages (3x the overcharge amount) — if the violation is deemed willful or intentional
- Actual damages — any damages the tenant suffered as a result
- Attorney fees and court costs — the prevailing tenant’s attorney fees are recoverable from the landlord
These penalties are not small. Consider a scenario where you increase a $1,500 rent payment by 12% instead of the allowable 9.1%, charging an extra $45 per month. If this occurs for 12 months, that’s $540 in overcharges. But the statutory damages would be $200 × 365 days = $73,000, plus treble damages if deemed willful, plus attorney fees potentially exceeding $5,000-$15,000.
This is why precision in calculating the PCE index and obtaining the correct allowable percentage is critical.
Who Can Sue and How
A tenant can bring a claim against you in small claims court (up to $10,000) or district court (no limit). The tenant does not need to hire an attorney; they can file pro se. If they do hire an attorney, you pay the fees.
Additionally, the Oregon Attorney General’s office can pursue enforcement action against landlords with a pattern of violations. This can result in civil penalties and cease-and-desist orders.
Tenant advocacy organizations in Oregon actively monitor for violations and often assist tenants in filing claims. Do not assume a violation will go undetected.
Special Situations and Edge Cases
Month-to-Month Tenancies
If your tenant is on a month-to-month lease, the 7% + CPI cap still applies. You cannot avoid the cap by converting to month-to-month. The cap applies to any increase in rent within a 12-month period, regardless of lease term length.
For month-to-month tenancies, the rent increase anniversary date is typically the date rent is due each month. Verify your lease language to confirm the specific date.
Lease Renewals vs. Lease Amendments
The cap applies to rent increases at lease renewal and mid-lease modifications. If you and the tenant agree to increase rent mid-lease (with the tenant’s consent), the 7% + CPI cap still applies. You cannot charge an increase above the cap even if both parties agree to it in writing; ORS 90.323 is a matter of public policy and cannot be waived by contract.
New Tenants and Market Rent
A common misconception: does the cap apply when a new tenant moves in? Yes, it does. If you had a previous tenant paying $1,500, and they move out, you cannot charge a new tenant $1,800 without first charging the outgoing tenant the capped increase amount.
More precisely: if a lease ends on June 30 and you had charged the tenant $1,500 with a 9% allowable increase, the maximum rent for a new tenant starting July 1 would be $1,635 (the $1,500 + 9% that you should have charged to the outgoing tenant). You cannot “reset” the rent for a new tenant and ignore the cap.
This is a complex issue, and the Oregon Attorney General has issued guidance stating that rent cannot increase beyond the cap between tenants. Consult an attorney if you need to clarify this for a specific property.
Properties with Utilities Included
If rent includes utilities, and utility costs increase, can you raise rent above the cap to cover the increased utility cost? Generally, no. The 7% + CPI cap applies to the total rent amount, regardless of whether utilities are included. You cannot circumvent the cap by separating utilities into a line item and raising that separately.
However, some leases allow for a utility pass-through clause that adjusts the rent if utility costs fluctuate significantly. Such clauses may be permissible under Oregon law, but they must be clearly disclosed in the lease and not be used as a workaround to exceed the cap.
Compliance Tools and Documentation
What You Should Track
To prove compliance if a dispute arises, maintain detailed records of:
- The prior year’s rent amount
- The PCE index figure used in your calculation (with the source and date obtained)
- Your calculation showing how the new rent was derived
- The date the notice was sent
- Proof of delivery (certified mail receipt or signed acknowledgment)
- The full text of the notice delivered to the tenant
- Any correspondence with the tenant about the increase
Maintaining these records protects you if a tenant disputes the increase. It demonstrates good faith compliance.
Automating Compliance With LeaseBase
Calculating rent increases manually across multiple properties creates risk. LeaseBase’s compliance engine tracks rent increase caps by jurisdiction and alerts you when to send notices. The platform stores the official PCE index figures and calculates compliant increase amounts automatically. You can generate notice templates pre-populated with the correct language and amounts, reducing human error.
For landlords managing multiple properties or those with tenants in different Oregon cities (each with potentially different rent control rules), automated lease management ensures you don’t miss a deadline or miscalculate an increase.
Interaction With Other Oregon Landlord-Tenant Laws
Relationship to Cause Eviction Rules
Oregon law requires landlords to have “cause” to evict, under ORS 90.405. Serving a rent increase notice does not constitute cause for eviction. However, if a tenant refuses to pay the increased rent after receiving a valid notice, that constitutes non-payment of rent, which is cause for eviction.
Be aware: if you serve an invalid rent increase notice (e.g., without 90 days’ notice), the tenant does not have to pay the increased amount. If you attempt to evict for non-payment based on an invalid notice, the eviction will likely fail in court.
No-Cause Eviction Termination Rules
Oregon has additional protections: tenancies cannot be terminated without cause except in limited circumstances. ORS 90.405 requires a landlord to prove “just cause” to evict. A rent increase above the cap is not just cause, and some tenancy terminations are prohibited if they retaliate against a tenant’s exercise of rights (ORS 90.385(7)).
Do not use rent increases as a mechanism to force out tenants you wish to remove. If a tenant can demonstrate that a rent increase was retaliatory (e.g., after they complained about habitability issues), Oregon law provides remedies against the landlord, including damages and lease reinstatement.
FAQs: Oregon Rent Increase Cap
Can I charge an increase larger than 7% + CPI if the tenant agrees?
No. ORS 90.323 is a matter of public policy. Even if you and the tenant sign a contract agreeing to an increase above the cap, that provision is void and unenforceable. The maximum allowable increase is 7% + CPI, regardless of tenant consent. Any increase above that is a violation of state law.
What if I calculate the PCE index myself and get a different number than Oregon DCBS publishes?
Use the official figure published by Oregon DCBS. If you calculate independently and your figure differs, the official state figure is what will be used in a dispute. Calculating your own PCE index exposes you to risk if your methodology differs from the state’s. Always verify against the official published rate before sending a notice.
Can I avoid the rent increase cap by including mandatory fees (parking, amenities, etc.)?
No. Oregon law considers all mandatory fees paid by the tenant as part of “rent” for the purposes of ORS 90.323. You cannot circumvent the cap by raising the base rent within the cap and then adding a new or increased fee above the cap. All housing charges must stay within the 7% + CPI ceiling in aggregate.
If I own a property in Portland and a different property in an unincorporated area of a county, do both fall under the same cap?
The Portland property is subject to Portland’s local rent control ordinance (currently 3% + CPI), which is more restrictive than the state cap. The property in the unincorporated county area is subject to the statewide cap of 7% + CPI. Each property is governed by the law of its jurisdiction. Verify your city or county’s rules if you own multiple properties in different locations.
What if my lease says the rent is tied to CPI-U, not the West-South Central PCE index?
Oregon law specifies the West-South Central PCE index, not CPI-U. Your lease contract does not override state law. If your lease references CPI-U, the state law index applies instead. Any conflict between the lease and ORS 90.323 is resolved in favor of the tenant and the state law requirement.
Oregon DCBS Resources and Official Guidance
The Oregon Department of Consumer and Business Services publishes guidance on rent increase compliance, including the official allowable percentage each year. Access these resources:
- Oregon DCBS Rental Housing Section: oregon.gov/dcbs/rh
- Annual Rent Increase Cap Announcement: Published typically in December for the following year
- Landlord Guides and FAQs: Available on the DCBS website
- Oregon Attorney General’s Office: Rental housing enforcement and guidance
Bookmark these sites. Check them at least 120 days before you plan to send any rent increase notice.
Conclusion: Compliance Is Non-Negotiable
Oregon’s 7% + CPI rent increase cap is one of the most landlord-restrictive rent control laws in the country. It applies to all properties, has no exemptions, and carries steep penalties for violations.
The good news: the rule is clear and calculable. If you follow the four core requirements—use the correct PCE index, calculate the increase accurately, provide 90 days’ notice with all required content, and document everything—you will comply with ORS 90.323.
The risk: one miscalculation or one missed deadline can cost you tens of thousands in damages. Self-managing landlords who track rent increases manually across multiple properties face compounding risk. A single error across ten properties becomes ten separate violations, each accruing $200 per day in damages.
Consider whether your current system—spreadsheets, email reminders, or manual calculations—has adequate safeguards. If not, automated compliance systems eliminate human error and provide audit trails that protect you in disputes. Evaluate tools designed for self-managing landlords that cost a fraction of a single damages award.
Compliance is not just legal obligation; it’s the foundation of sustainable self-management. Oregon tenants and their advocates actively enforce these rules. Know your numbers, send timely notices, and document everything. That is how you stay compliant under Oregon law.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation, especially regarding local ordinances, lease-specific questions, or disputes. Oregon law is complex and subject to judicial interpretation. The penalties and requirements described here reflect the law as of August 2026 and may change. Verify all current requirements with the Oregon Department of Consumer and Business Services or an attorney licensed in Oregon before taking action on a rent increase.