Oregon Rent Increase Cap: 7% Plus CPI Compliance Guide — 2026

What Is Oregon's Rent Increase Cap?

Oregon's statewide rent control law, codified in ORS 90.323, limits how much a landlord can increase rent in any 12-month period. The cap is 7 percent plus the Consumer Price Index (CPI). This means if CPI is 2%, your maximum lawful increase is 9%. If CPI is 3.5%, the maximum is 10.5%.

This law applies to the vast majority of residential tenancies in Oregon, including:

• Single-family homes (except when owner-occupied)
• Apartments and multi-unit buildings
• Condos and townhomes
• Mobile home parks
• Subsidized housing (with some limitations)

The law took effect January 1, 2020, as part of Senate Bill 608 (SB 608), which the Oregon Legislature passed in 2019 as a statewide measure. Unlike some states, Oregon does not allow local jurisdictions to set lower caps—but they are allowed to set stricter caps. Portland, for example, has additional protections under Portland City Code 30.01.085, but those intersect with the state law.

The key compliance issue for self-managing landlords is that you cannot charge more than the legal cap, period. A tenant can challenge any increase above this threshold, and courts have consistently upheld the statute.

How to Calculate the Annual CPI Component

The "7% plus CPI" formula requires you to identify the correct Consumer Price Index figure for your year. Here's how:

Step 1: Identify the Applicable CPI Release

Oregon law specifies that the CPI used is the All Items Index for the Portland-Salem-Vancouver metropolitan area, as published by the U.S. Bureau of Labor Statistics (BLS). If the tenant's property is outside this metro area, use the U.S. city average index instead.

The statute (ORS 90.323(2)) ties the CPI to the "most recent" index available at the time the landlord must provide notice. In practice, this means:

• For rent increases effective January 1, 2027: Use the CPI index published by BLS in October 2026 (12-month change)
• For rent increases effective July 1, 2027: Use the CPI index published by April 2027 (12-month change)

Step 2: Calculate the 12-Month Percentage Change

CPI is published monthly. You need the 12-month change (not month-to-month). The BLS website publishes this directly in their news releases.

Example calculation for 2026:

• October 2025 All Items Index for Portland-Salem-Vancouver: 305.2
• October 2024 All Items Index for same area: 298.1
• 12-month change: (305.2 – 298.1) / 298.1 = 0.0237 or 2.37%
• Maximum legal increase: 7% + 2.37% = 9.37%

Step 3: Apply the Cap to Current Rent

Once you have the percentage, multiply it by the current monthly rent:

• Current rent: $1,500/month
• Maximum increase: $1,500 × 0.0937 = $140.55
• New legal rent: $1,640.55

Many landlords round to the nearest dollar or $5 increment. Oregon law does not prohibit rounding, but keep records of your calculation in case you are audited by a tenant's attorney.

The 90-Day Notice Requirement: Timing and Content

You cannot simply charge a tenant more rent on the next lease anniversary. Oregon law requires written notice at least 90 days before the end of the current tenancy period. Failure to provide proper notice makes the rent increase void—the tenant can refuse to pay the increase, and you cannot evict them for non-payment of an unlawful increase.

What "90 Days" Means in Practice

If your lease renews on June 1, 2027, the 90-day window opens on March 3, 2027 (exactly 90 days before). Any notice delivered between March 3 and June 1 satisfies the requirement. If you mail notice on June 2, it is late, and that rent increase is unenforceable.

The statute (ORS 90.323(1)) states the notice must be provided "not less than 90 days before the end of the tenancy period." Some landlords interpret "end of tenancy period" as the last day of the month, while others interpret it as the lease renewal date. Courts have generally applied the lease anniversary date as the controlling date.

Required Notice Content

Oregon law does not specify exact language, but your notice must clearly state:

• The effective date of the increase (e.g., "effective June 1, 2027")
• The new monthly rent amount
• The amount of the increase (in dollars)
• The percentage of the increase
• A statement that the increase complies with ORS 90.323 (recommended for documentation purposes)
• An explanation of the tenant's right to terminate the tenancy if they object to the increase (see "Tenant Termination Rights" below)

Example notice language:

"Notice of Rent Increase: Effective June 1, 2027, your monthly rent will increase from $1,500 to $1,640.55, an increase of $140.55 per month (9.37%). This increase is permitted under Oregon Revised Statutes 90.323. You have the right to terminate your tenancy by providing written notice as outlined in your lease, without penalty, if you object to this increase. If you have questions, contact [landlord contact information]."

How to Deliver the Notice

Oregon law (ORS 90.115) requires that notice be delivered via one of these methods:

• Personal delivery to the tenant or an adult occupant
• First-class mail to the tenant's mailing address on the lease
• Email (if the tenant has agreed to email communication and provided an email address)
• Text message (if the tenant has agreed to text communication and provided a phone number)

If you mail the notice, delivery is deemed complete three business days after deposit with the postal service. Keep proof of mailing (a USPS Certificate of Mailing or tracking number). Email and text messages should be sent to the contact information the tenant provided on the lease.

Best practice: Use certified mail with return receipt requested for all rent increase notices. This creates an undisputable record of delivery and timing.

Exemptions: When the 7% + CPI Cap Does Not Apply

While Oregon's rent control law is broad, certain tenancies are exempt. However, the exemptions are narrow and strictly construed by courts. Self-managing landlords often mistakenly believe they qualify for an exemption when they do not.

New Construction Exemption

Properties that have never been occupied or were first occupied after January 1, 2020, are exempt for 15 years from first occupancy. After 15 years, the 7% + CPI cap applies to all future increases.

This exemption is rarely available to self-managing landlords because most residential stock is older than 2020. If you own a newly built property, document the date of first occupancy carefully.

Public Housing Exemption

Public housing agencies and federally subsidized housing programs that set rents based on tenant income (income-based rent) are exempt from the cap. If you participate in a Section 8 or other HUD program, you can increase rent according to the program's formula, not ORS 90.323. However, you must still comply with program-specific notice requirements.

Owner-Occupied Duplex Exemption (Limited)

If you own a duplex and live in one unit as your primary residence, the rent-control cap does not apply to the other unit—but only if the building has no more than two units. The owner must occupy one of the units, and the exemption is lost if the owner moves out or the property is converted to more than two units.

This exemption is often misunderstood. You must meet all three criteria:

• Exactly two units (not three or more)
• You own the property
• You occupy one unit as your primary residence at the time of the rent increase

If you own a triplex or four-plex, this exemption does not apply, and you must comply with the cap for all units.

No Exemption for Single-Family Homes or Investment Property

A common misconception is that single-family rental homes are exempt. They are not. ORS 90.323 applies to single-family homes unless the owner lives in the home (in which case it is not a tenancy at all—it is an owner-occupied residence).

What Constitutes a Prohibited "Rent" Increase?

Landlords sometimes attempt to circumvent the 7% + CPI cap by increasing fees rather than base rent. Oregon law treats this as an unlawful practice. Any recurring charge or fee that is a condition of occupancy is considered "rent" and subject to the cap.

Charges That Count as Rent

The following cannot be increased beyond 7% + CPI:

• Parking fees (if parking is part of the tenancy)
• Pet fees (if stated as a monthly charge, not a one-time deposit)
• Utility service charges (if billed by the landlord and passed through)
• Amenity fees (gym, pool, community center access)
• Maintenance or grounds care fees
• Late fees, if they are recurring or automatic
• Mandatory service charges of any kind

Charges That May Be Changed (With Caution)

Non-recurring, one-time charges are not considered rent, but Oregon courts scrutinize these closely. For example:

• One-time pet deposit (not a monthly fee) — may be changed
• Move-out cleaning fees triggered only when tenant vacates — gray area; courts have ruled these can be changed but not retroactively applied to existing tenancies
• Application fees for new tenants — these apply to new applicants, not rent increases to existing tenants

Critical point: If you previously charged $50/month for parking, you cannot suddenly increase it to $75 and call it a "facilities fee." Courts will recharacterize it as rent and void the increase.

Penalties for Violating the Rent Increase Cap

Oregon law provides strong protections for tenants. Violations carry significant financial and legal consequences for landlords.

Statutory Damages

Under ORS 90.325, a tenant can sue for damages if a landlord charges rent in excess of the legal cap. The statute allows:

• Actual damages — the excess amount paid, calculated from the date of the illegal increase through the date of judgment
• Civil penalty of up to $2,000 per violation — a separate fine not tied to the actual overage
• Attorney fees and court costs — if the tenant prevails, the landlord pays the tenant's legal fees

Example damages calculation:

• Legal increase: 9.37% ($140.55/month)
• Charged increase: 15% ($225/month)
• Excess per month: $84.45
• Months overcharged: 12 (one lease year)
• Actual damages: $1,013.40
• Civil penalty: up to $2,000
• Attorney fees: $3,000–$8,000+ (depending on case complexity)
• Total exposure: $6,000–$11,000+ for one year of violation

Treble Damages for Willful Violations

If a court finds that a landlord knowingly and intentionally violated the rent cap, damages may be tripled (ORS 90.325(3)). Willfulness is established if the landlord had actual knowledge of the law or acted with reckless disregard for it. Claiming ignorance of the law is not a defense if the evidence shows you should have known.

Treble damages example:

• Actual damages: $1,013.40 × 3 = $3,040.20
• Civil penalty: $2,000
• Attorney fees: $5,000
• Total: $10,040.20

Eviction Protection for Tenants

A tenant cannot be evicted for refusing to pay an unlawful rent increase. If you attempt to evict for non-payment of an increase that violates ORS 90.323, the eviction will be dismissed, and you may face a counterclaim for damages.

Enforcement by Oregon Department of Consumer and Business Services (DCBS)

While private lawsuits are the primary enforcement mechanism, Oregon's Bureau of Labor and Industries (BOLI) can investigate complaints. They do not typically bring enforcement actions, but they can issue opinions and guidance that carry weight in court.

Special Considerations for Portland and Other Jurisdictions

Some Oregon cities have enacted additional rent-control measures that are stricter than the state law. The most notable is Portland.

Portland City Code 30.01.085

Portland's local ordinance imposes a 5% annual cap on rent increases (with a CPI adjustment built in). This is stricter than the state's 7% + CPI. For properties in Portland, you must comply with the more restrictive Portland cap, not the state cap. Failure to comply exposes you to Portland code enforcement proceedings and additional damages.

Other cities with local rent restrictions include:

• Bend: Local restrictions on rent-increase frequency and timing
• Eugene: Additional notice requirements and just-cause eviction rules

Before increasing rent, check your city code or consult a Portland or Oregon attorney to confirm whether local rules apply. Local rules typically do not lower the CPI threshold but may impose different notice periods or percentage caps.

Lease Language and Compliance Documentation

To reduce disputes and legal exposure, your lease should include clear language about rent increases:

Recommended Lease Clause

"Rent increases are subject to Oregon Revised Statutes 90.323, which limits annual increases to 7% plus the Consumer Price Index (CPI). Any rent increase will be provided in writing at least 90 days before the lease anniversary date, along with documentation of the applicable CPI figure."

This clause does not override the law (the law applies whether or not the lease mentions it), but it demonstrates that you understand your obligations and helps manage tenant expectations.

Record-Keeping Checklist

For every rent increase, maintain a file containing:

• Copy of the CPI press release or BLS data used in the calculation
• Dated calculation worksheet showing the 7% + CPI formula applied
• Written notice delivered to the tenant (proof of mailing or delivery confirmation)
• Lease anniversary date and confirmation the 90-day notice window was met
• Any communications with the tenant regarding the increase

This documentation protects you if a tenant later challenges the increase or if you are audited by a plaintiff's attorney.

Interaction with Lease Renewal and Month-to-Month Tenancies

Fixed-Term Leases

For a lease expiring June 1, 2027, the 90-day notice window opens March 3, 2027. If you and the tenant sign a new lease with a higher rent, the increase must not exceed the 7% + CPI cap. If the tenant does not sign a new lease, they become month-to-month, and the cap still applies to any further increases.

Month-to-Month Tenancies

Month-to-month tenants have the same protections. If you want to increase rent on a month-to-month tenant, you must provide 90 days' written notice before the effective date of the increase. The 90-day period is measured from the date notice is given to the first day of the rental period in which the increase takes effect.

Tenant Right to Terminate Without Penalty

Oregon law gives tenants an important protection: a tenant can terminate their tenancy without penalty if they receive a notice of rent increase. The tenant must provide notice to the landlord within 30 days of receiving the increase notice.

This means if you increase rent by 9.37% (the legal cap), the tenant can move out. You cannot charge them a penalty or withold their security deposit for choosing to leave due to the increase. This right is separate from the requirement that the increase comply with the 7% + CPI cap.

Integration with LeaseBase Compliance Tools

Managing rent-increase calculations and notice timing manually creates errors. LeaseBase's compliance engine automatically tracks lease anniversary dates and alerts you to the 90-day notice window for each tenant. The system stores your CPI calculation and generates compliant notices with the exact language required by ORS 90.323.

Rent payment tracking integrates with your increase notices, so you can document that the tenant began paying the new amount on the correct date. Reporting tools let you pull a summary of all active increases across your portfolio, with proof of notice delivery for each one.

For landlords managing multiple properties in Portland and other cities with stricter rules, the compliance engine flags when local caps are more restrictive than the state cap and automatically applies the correct threshold.

Frequently Asked Questions

Q: Can I increase rent by 7% + CPI every year indefinitely?

A: Yes, as long as you meet the 90-day notice requirement each year. The cap resets annually. There is no limit on how many times you can increase rent, only on how much you can increase in any 12-month period. However, remember that tenants can terminate their tenancy at any time if they object to the increase, so excessive use of maximum allowable increases may lead to high turnover.

Q: What if the tenant refuses to pay the increase and I try to evict?

A: If your increase violated ORS 90.323, the eviction will fail. The court will dismiss the non-payment eviction action, and the tenant can counterclaim for damages, treble damages, attorney fees, and a civil penalty up to $2,000. Do not attempt to evict for non-payment of an unlawful increase; this is one of the fastest ways to incur six figures in legal liability.

Q: If I mail notice on day 88 before the lease anniversary, is it valid?

A: No. The statute requires notice be provided "not less than 90 days before the end of the tenancy period." Day 88 is fewer than 90 days. Courts interpret this strictly. Use certified mail and allow time for postal delivery. Best practice: mail by day 87 to ensure it arrives within the window.

Q: Do I use the Portland CPI or the statewide average CPI?

A: If the property is located in the Portland-Salem-Vancouver metropolitan area (Multnomah, Washington, Clackamas, Marion, Polk, or Clark County), use the Portland-Salem-Vancouver All Items Index published by BLS. If the property is outside this area, use the U.S. city average index. Check the BLS website each October to confirm which index applies to your county.

Q: Can I charge a one-time "rent adjustment fee" instead of increasing the base rent?

A: No. Any recurring charge tied to occupancy is "rent" under ORS 90.323. A one-time fee might not be legally classified as "rent," but Oregon courts have ruled that circumventing the cap through fee increases is unlawful if the fee is designed to replace a rent increase. The intent and effect matter, not the label.

Q: If I own a duplex but my tenant occupies both units, does the exemption apply?

A: No. The owner-occupied duplex exemption applies only if you occupy one unit as your primary residence and the tenant occupies the other unit. If a single tenant occupies both units of a duplex, the property is effectively a 2-unit residential building, and the state cap applies to both units.

Action Items for Compliance

To ensure you remain compliant with Oregon's rent increase cap:

Action	Timeline	Responsibility
Confirm applicable CPI index for your property location	October each year	Landlord or property manager
Calculate 12-month CPI change using BLS data	October each year	Landlord or accountant
Determine maximum allowable increase (7% + CPI)	October each year	Landlord or property manager
Calculate new rent amount (with rounding if desired)	October–November	Landlord or accountant
Draft written notice with all required details	November–December	Landlord or attorney
Deliver notice by certified mail (90+ days before lease anniversary)	December–February	Landlord or property manager
File proof of mailing and calculation worksheet	Same day as mailing	Landlord or property manager
Confirm new rent payment begins on effective date	Lease anniversary date	Landlord or accountant

Conclusion: Stay Ahead of Disputes

Oregon's 7% + CPI rent increase cap is a clear, calculable limit. It is not a suggestion or a default—it is the law. Compliance requires three things: (1) accurate CPI calculation, (2) compliant notice delivery, and (3) documentation of both.

The most common landlord mistake is increasing rent without proper notice or by exceeding the cap and hoping the tenant will not notice. Tenants increasingly have access to legal resources and use online tools to verify rent-increase legality. A single violation can trigger a lawsuit that costs you 10–15 times more than the overage itself.

The cost of compliance is minimal: a few hours of calculation work and certified postage per tenant per year. The cost of non-compliance is substantial—treble damages, statutory penalties, and attorney fees.

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Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation, particularly if you are in Portland or another jurisdiction with local rent restrictions.