Key Takeaways
- Annual rent increase limit is 7% plus the Consumer Price Index (CPI) — violations expose landlords to treble damages (triple the overcharge amount) under ORS 90.323(1)
- 90-day written notice required before any rent increase takes effect — notice must include the new rent amount, effective date, and calculation methodology per ORS 90.323(2)
- CPI is calculated using the West Urban 12-month average — the U.S. Bureau of Labor Statistics figure published in September applies to increases effective the following year (January 1)
- Exemptions exist for new construction (first 15 years), owner-occupied buildings with 1–4 units, and properties granted local exemptions — verify your property status before applying the cap
- Non-compliant increases are void; tenants can sue for treble damages plus attorney fees — no statute of limitations waiver exists, and the burden of proof is on the landlord to demonstrate compliance
- CPI calculation for 2026 increases: 7% + September 2025 CPI index — errors in math or documentation are strictly enforced by Oregon courts
Understanding Oregon’s Rent Increase Cap Under ORS 90.323
In 2017, Oregon became the first state in the nation to impose a statewide rent increase cap. Since then, the law—codified in ORS 90.323 and often referred to as “SB 608″—has fundamentally altered how landlords approach annual rent adjustments. For self-managing landlords in Oregon, misunderstanding or misapplying this rule is one of the costliest compliance mistakes. A single illegal rent increase can trigger treble damages liability, attorney fees, and damage to your reputation as a landlord.
The core requirement is simple in concept but requires precision in execution: You cannot raise rent more than 7 percent plus the annual Consumer Price Index (CPI) in any 12-month period. Unlike other states with flat percentage caps, Oregon’s formula is dynamic—it changes year to year based on inflation data published by the U.S. Bureau of Labor Statistics.
This guide walks you through the calculation, notice requirements, exemptions, and enforcement mechanisms. We’ll also show you how to document your compliance to defend yourself if a tenant challenges the increase.
The 7% + CPI Formula: How It Works
Breaking Down the Components
Oregon’s rent increase cap consists of two parts:
- Base percentage: 7% — This is fixed and non-negotiable. Every landlord gets 7% regardless of inflation.
- CPI adjustment: Annual inflation rate — This varies year to year and is tied to a specific data source: the “U.S. city average all-items Consumer Price Index for all urban consumers” on a 12-month change basis, published by the Bureau of Labor Statistics.
Example: If the CPI published in September 2025 is 2.4%, then the maximum allowable rent increase for leases renewing in 2026 is 7% + 2.4% = 9.4%.
Critically, under ORS 90.323, the CPI figure used is the one published in September of the prior year. This means landlords must plan ahead and know the previous September’s CPI before drafting rent increase notices.
Which CPI Index Does Oregon Use?
The statute references “the U.S. city average all-items Consumer Price Index for all urban consumers (CPI-U)” on a 12-month change basis. This is the broadest measure of inflation and is published monthly by the Bureau of Labor Statistics (BLS) at bls.gov.
Landlords often make mistakes by using:
- Regional CPI (e.g., Portland-Salem-Vancouver CPI) instead of the national urban average
- Core CPI (which excludes food and energy)
- Month-over-month changes instead of 12-month changes
- CPI data published in a month other than September
Each of these errors can render the rent increase non-compliant. The statute is unambiguous: use the national all-items CPI-U, 12-month average, published in September. No substitutes.
2026 Rent Increase: The Current Calculation
For rent increases effective January 1, 2026 through December 31, 2026, the allowable cap is calculated using the CPI published in September 2025. As of late 2025, this figure had not yet been officially released, but landlords must wait for the BLS to publish it before sending increase notices.
Once published, you’ll add that CPI percentage to 7% to determine your maximum increase. If the CPI is 2.5%, the cap for 2026 is 9.5%. If it’s 3.0%, the cap is 10%.
| Year of Increase | CPI Reference Month | Maximum Allowable Increase |
|---|---|---|
| 2024 | September 2023 | 7% + 3.8% = 10.8% |
| 2025 | September 2024 | 7% + 2.4% = 9.4% |
| 2026 | September 2025 | 7% + [TBD] = [TBD] |
| 2027 | September 2026 | 7% + [TBD] = [TBD] |
Notice Requirements: The 90-Day Rule
Timing and Delivery
ORS 90.323(2) requires landlords to give 90 days’ written notice before a rent increase takes effect. This is a strict deadline. If you serve a 60-day notice, it is legally insufficient, and the rent increase does not bind the tenant.
The 90-day period is calculated from the date the notice is received by the tenant (or deemed received under ORS 90.007). If you mail the notice on September 1, the earliest effective date is December 1 (90 days later).
For month-to-month tenancies, the notice must specify:
- The current rent amount
- The new rent amount
- The effective date of the increase
- The calculation showing how the new amount complies with the 7% + CPI cap
Many landlords omit the calculation, assuming tenants won’t verify it. This is a compliance gamble. If the tenant disputes the increase and sues, the burden of proof is on you to show the math was correct. If you have no documentation of how you arrived at the number, a court may rule the increase invalid regardless of whether it actually complied with the cap.
What Happens if the Tenant Doesn’t Respond?
Silence is not acceptance. Even if a tenant doesn’t formally challenge the rent increase, if it exceeds the legal cap, it remains void. The tenant can raise the defense years later in an eviction case or file a separate lawsuit for damages. There is no statute of limitations waiver for rent increase violations in Oregon.
Calculating Your Specific Rent Increase: Step-by-Step
Step 1: Confirm the Current CPI Figure
Visit bls.gov and locate the September CPI-U all-items index. This should be labeled “U.S. city average all-items, 12-month percent change.” Write this number down. Do not estimate or use an older figure.
Step 2: Add 7% to the CPI
Example:
- September 2025 CPI: 2.5%
- Base allowable increase: 7%
- Maximum rent increase: 7% + 2.5% = 9.5%
Step 3: Calculate the Dollar Amount
Multiply the current rent by the maximum percentage increase.
- Current rent: $1,500
- Maximum increase: 9.5%
- Dollar increase: $1,500 × 0.095 = $142.50
- New rent: $1,500 + $142.50 = $1,642.50
You can increase the rent to any amount up to this maximum. You do not have to use the full cap. However, if you exceed it by even $1, the entire increase is void and you have exposed yourself to treble damages liability.
Step 4: Draft the Notice
Use a written notice that includes all required elements (see the checklist below). Keep a copy for your records.
Step 5: Deliver the Notice Properly
ORS 90.007 specifies valid methods of delivery: personal delivery, mailing to the tenant’s last known address, or posting on the unit door if mail cannot be delivered. Email is not a valid method unless the lease specifically allows it and the tenant agrees. Document how and when you served the notice.
Step 6: Wait 90 Days
The rent increase does not take effect until 90 days after the notice is received. If the tenant disputes the calculation during this period, address it immediately. Do not assume the matter is settled.
Exemptions: Properties Not Subject to the Cap
Not all Oregon properties are subject to ORS 90.323. Understanding the exemptions is critical to avoid over-restricting your own rent increases.
New Construction (15-Year Exemption)
Residential buildings completed after January 1, 2020, are exempt from the rent increase cap for 15 years from the date of completion. This exemption applies only to the first tenancy of a unit. Once a tenant moves out after the 15-year period ends, the cap applies to all subsequent leases in that unit.
The exemption does not apply to:
- Buildings substantially remodeled or rehabilitated (new construction doctrine does not extend to major renovations)
- Subsequent leases after the first tenant vacates (even within the 15-year window for a new tenant)
Owner-Occupied 1–4 Unit Buildings
Landlords who own and reside in a building with 1–4 units are exempt from the rent increase cap. However, the exemption is lost if the landlord moves out or if the building is converted to a rental property operated as a business. Many self-managing landlords assume this exemption applies broadly; it does not. You must actively reside in the building as your primary residence.
Local Exemptions
Some Oregon cities (e.g., Portland, Eugene) have enacted stricter rent control rules than the state cap. Conversely, some cities have obtained exemptions from the statewide cap. Check your city’s current ordinances. If your city has an exemption, the state cap does not apply, but you must still comply with any local rent increase rules in place.
As of 2026, no major Oregon municipalities have been exempted from ORS 90.323. However, local rules may impose additional notice requirements or other restrictions that go beyond state law.
Penalties for Non-Compliance
Treble Damages
Under ORS 90.323(1), a landlord who violates the rent increase cap is liable for “three times the overcharge amount plus court costs and a reasonable attorney fee.” This is not liquidated damages; it is treble (triple) damages.
Example:
- Illegal increase: $200 per month over the cap
- Duration of violation: 12 months
- Total overcharge: $200 × 12 = $2,400
- Treble damages award: $2,400 × 3 = $7,200
- Plus: Attorney fees (often $3,000–$8,000 for a straightforward case)
- Plus: Court costs
A single year of non-compliance can result in $10,000+ in liability, even for small rental units.
Enforcement by the Oregon Department of Consumer and Business Services
Tenants can report rent increase violations to Oregon’s bureau of consumer affairs. While the state does not have a dedicated enforcement unit, complaints are logged and may trigger investigation if patterns emerge. More importantly, complaints create a paper trail that strengthens a tenant’s case in civil court.
Defense Burden
If a tenant alleges a violation, the burden of proof is on the landlord to demonstrate compliance. You must produce:
- Documentation of the CPI figure used (with the source and publication date)
- Mathematical calculation showing the rent increase does not exceed 7% + CPI
- A copy of the notice delivered to the tenant
- Proof of delivery (mailing receipt, signed acknowledgment, or posting documentation)
If you cannot produce this documentation, the court may find the increase non-compliant regardless of its actual calculation.
Special Situations and Edge Cases
Mid-Year Rent Increases
The 7% + CPI cap applies to rent increases within any 12-month period. If you raise rent in March 2026, you cannot raise it again until March 2027, even if the calendar year changes. The 12-month clock starts when the last increase took effect.
Lease Renewals vs. Month-to-Month Increases
ORS 90.323 applies to all rent increases, including lease renewals. If a tenant has a one-year fixed lease at $1,500/month, and the lease expires, you cannot demand more than 7% + CPI when offering a renewal. The cap applies equally to new leases and continued tenancies.
Rent Decreases and the “Reset” Question
If you voluntarily decrease rent (e.g., to retain a good tenant), does this reset the 12-month clock for future increases? The statute does not explicitly address this. The safest approach is to treat the decrease as a new baseline and measure the next increase from that lower amount. Some attorneys argue a voluntary decrease does not reset the clock, but litigation risk exists either way. Document your reasoning in writing.
Property Tax Increases and the Rent Cap
Oregon’s statute does not provide an exception for rising property taxes or other landlord costs. You cannot exceed the 7% + CPI cap even if your taxes, insurance, or maintenance costs rise sharply. This is a point of frustration for landlords, but it is the law. Budget conservatively for years with high-cost growth.
Compliance Checklist: Ensuring Your Rent Increase Is Legal
Use this checklist before serving any rent increase notice:
- ☐ Verified the September CPI-U all-items 12-month change figure from bls.gov
- ☐ Calculated the maximum allowable increase: 7% + CPI
- ☐ Confirmed the property is not exempt (new construction within 15 years, owner-occupied 1–4 units, or locally exempted)
- ☐ Verified that at least 12 months have passed since the last rent increase for this tenant
- ☐ Calculated the proposed rent increase; confirmed it does not exceed the cap by any amount
- ☐ Drafted a written notice including: current rent, new rent, effective date, and calculation methodology
- ☐ Ensured the notice is signed and dated
- ☐ Delivered the notice using one of the valid methods under ORS 90.007 (personal delivery, mail, or posting)
- ☐ Documented the delivery method and date; kept a copy for your records
- ☐ Confirmed that at least 90 days have elapsed from delivery before the effective date
- ☐ Preserved all documentation (CPI source, calculation, delivery proof) for at least 7 years
How LeaseBase Keeps You Compliant
Managing rent increases manually invites calculation errors, missed deadlines, and incomplete documentation. LeaseBase’s compliance engine automatically flags when rent increases are due, stores the current CPI figures from authoritative sources, and calculates the maximum allowable increase for your property based on its exemption status and local rules. When you’re ready to send a notice, the platform generates a compliant template with the math pre-verified and delivery dates locked in.
For landlords managing 2–75 units, LeaseBase consolidates rent increase compliance, notice tracking, and documentation storage in one place—eliminating the spreadsheet chaos that leads to expensive mistakes.
FAQ: Oregon Rent Increase Cap Questions
Q: Can I charge more rent if the tenant signs an addendum agreeing to waive the cap?
A: No. ORS 90.323 is a mandatory statute. Any provision in a lease or agreement that waives the rent increase cap is void and unenforceable. The cap cannot be contracted around.
Q: What if I miscalculate and overcharge the tenant by $50? Is the entire increase void, or just the $50?
A: The entire increase is void. Oregon courts have held that rent increases exceeding the cap—even by a small amount—are wholly unenforceable. The tenant owes the original rent amount, not the increased amount. You cannot collect the overcharge and must reimburse any overpayment the tenant made.
Q: Does the rent increase cap apply to commercial tenants or mixed-use buildings?
A: ORS 90.323 applies only to residential tenancies. Commercial space, offices, and mixed-use buildings (where some units are commercial) are exempt. However, if a mixed-use building has residential units, the cap applies to those units only.
Q: Can I include a “CPI adjustment clause” in the lease that automatically increases rent each year without notice?
A: No. The statute requires 90-day written notice before any rent increase takes effect, regardless of what the lease says. Automatic renewal clauses or CPI escalators are overridden by ORS 90.323. You must provide a separate notice each year.
Q: If a tenant disputes the CPI figure I used, who has to prove it was correct?
A: You do. If a tenant challenges the rent increase, the burden is on the landlord to produce documentation showing: (1) the official BLS CPI figure you relied on, (2) the date it was published, and (3) the mathematical calculation. Failure to produce this evidence may result in a finding that the increase was non-compliant, even if it actually was legal.
Q: Are there any inflation-rate thresholds where the rent increase cap goes away or increases?
A: No. The cap is fixed at 7% + CPI, regardless of how high inflation climbs. Even if inflation hits 10%, the cap remains 7% + 10% = 17% (not 0% or some other emergency figure). The legislature has not modified the formula since 2017, despite years of discussion.
Resources and Further Reading
- ORS 90.323 (full text) — Oregon Revised Statutes, Chapter 90, Residential Tenancies
- Bureau of Labor Statistics CPI Data — bls.gov/regions (search “all-items CPI-U” for national figure)
- Oregon Department of Consumer and Business Services — oregon.gov/consumer (rent increase complaint filing)
- Legal Aid Center of Southern Oregon — Offers free tenant rights clinics; many provide landlord-tenant law reference materials
- Oregon Landlord Association — olapdx.org; advocacy and compliance resources for Oregon landlords
Summary: Staying Out of Treble Damages Territory
Oregon’s rent increase cap is straightforward in theory but requires precision in execution. The formula—7% plus the September CPI-U—changes annually, and one calculation error or missed deadline can expose you to treble damages, attorney fees, and court costs.
The most common landlord mistakes are:
- Using the wrong CPI figure (regional, core, or outdated)
- Miscalculating the percentage or dollar amount
- Serving less than 90 days’ notice
- Failing to document the calculation and delivery method
- Assuming tenant silence means acceptance
To stay compliant: verify the official CPI, do the math twice, document everything, and allow 90+ days for notice. If you manage multiple units, centralize your rent increase records so no tenant falls through the cracks.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation. Oregon landlord-tenant law is complex, and enforcement agencies and courts regularly issue new interpretations. Always verify current statutes and case law before taking action.