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

What Is Oregon’s Rent Increase Cap?

On January 1, 2020, Oregon became the first state to implement a statewide rent control measure by passing Senate Bill 608. This law established a permanent rent increase cap codified in ORS 90.323 that applies to virtually all residential rental properties in Oregon, from Portland to rural eastern counties. Unlike local rent control ordinances that affect only certain cities, SB 608’s cap is statewide and applies equally to single-family homes, duplexes, apartments, and larger multifamily buildings.

The cap is simple in concept but requires precision in execution: You cannot raise rent more than 7 percent plus the annual change in the Consumer Price Index (CPI). That means if CPI increases by 2.5%, your maximum allowable rent increase is 9.5% (7% + 2.5%). If CPI decreases (deflation), you still cannot raise rent more than 7%, not less.

This is not a suggestion or best practice guideline—it is a statutory requirement with teeth. The Oregon Legislature made clear through ORS 90.255 that violations expose landlords to civil claims, treble damages, and attorney fee awards. For self-managing landlords, this is one of the three most consequential compliance rules in Oregon, alongside habitability standards (ORS 90.320) and security deposit return deadlines (ORS 90.060).

The Legal Authority: ORS 90.323 and SB 608

Senate Bill 608, passed in 2019 and effective January 1, 2020, amended Chapter 90 of the Oregon Revised Statutes to add the rent increase limitations. The operative statute is ORS 90.323, which reads:

“A landlord shall not increase the rent for a dwelling unit in a manner that violates subsection (1) of this section. Except as provided in subsection (2) of this section, the amount of a rent increase shall not exceed the greater of: (a) Seven percent; or (b) The percentage increase in the Consumer Price Index for the Portland-Salem-Vancouver area for the most recent 12-month period for which data is available.”

The statute explicitly ties the cap to the Consumer Price Index (CPI) published by the U.S. Bureau of Labor Statistics for the Portland-Salem-Vancouver metropolitan area. Oregon chose this specific CPI region because it encompasses the state’s largest urban centers. This is not a calculation you make; the Oregon Bureau of Labor and Industries publishes the allowable increase each year, typically in January.

The law’s severity lies in its remedy structure. ORS 90.255 allows a tenant to bring a civil action for violations and recover:

• The actual damages (the overcharge amount)
• Treble damages (three times the overcharge)
• Attorney fees and court costs
• Statutory penalties up to $500 for each violation if the violation is deemed willful

This means a $200/month overcharge sustained for 12 months ($2,400 total) could trigger a claim for $7,200 in treble damages plus the tenant’s attorney fees—easily $10,000 to $15,000 in legal exposure. For self-managing landlords, this is not a compliance area where informal practices work.

How the 7% + CPI Formula Works in Practice

Step-by-Step Calculation

The formula is straightforward, but execution requires attention to the calendar and source documents. Here is how to calculate your lawful rent increase for any lease renewal:

Step 1: Identify the relevant CPI figure. Visit the Oregon Bureau of Labor and Industries website or consult the U.S. Bureau of Labor Statistics Portland-Salem-Vancouver CPI index. The applicable CPI is the one published for the most recent 12-month period before you issue the rent increase notice. For rent increases effective in 2026, use the CPI data published in late 2025 for the prior 12 months.

Step 2: Compare 7% to the CPI increase. Take whichever is greater. If CPI is 2.3%, your cap is 7% (the larger number). If CPI is 4.8%, your cap is 7% + 4.8% = 11.8%.

Step 3: Apply the cap to current rent. Multiply the current monthly rent by the permissible percentage increase. Example: Current rent is $1,500/month. If your allowable increase is 7%, the new rent cannot exceed $1,605/month ($1,500 × 1.07).

Step 4: Round appropriately. Oregon law does not specify rounding rules, so use standard commercial rounding (0.5 and above rounds up). Never round in your favor; when in doubt, round down to stay safely within the cap.

Step 5: Issue 90-day written notice. As detailed below, any rent increase requires 90 days’ written notice.

2026 Rent Increase Cap Example

As of August 2026, landlords planning 2027 rent increases must use the CPI data published for the most recent 12-month period available (typically June 2026 data). For illustrative purposes, assume the Portland-Salem-Vancouver CPI increased 3.2% year-over-year. Your cap would be 7% + 3.2% = 10.2%. A property with current rent of $1,800/month could increase to a maximum of $1,983.60/month.

Never exceed this figure, even if you believe the market rate justifies it. The cap is the law, not a guideline.

The 90-Day Notice Requirement: What You Must Do

ORS 90.323 does not create the rent increase cap in a vacuum. It is paired with a statutory notice requirement that is equally important: you must provide 90 days’ written notice before any rent increase takes effect. This notice requirement is separate from and in addition to any notice required under a lease termination clause.

What Constitutes Valid Notice

Written format required. Oral notice, text messages, emails, or casual conversation do not satisfy the statute. The notice must be in writing. Certified mail, personal delivery, email with read receipt, or certified mail with return receipt all satisfy this requirement, but the safest method is certified mail or personal delivery with a signed receipt.

Content of the notice. Your rent increase notice should include:

• The current rent amount
• The new rent amount
• The effective date of the increase (which must be 90+ days from the notice date)
• The calculation method or reference to ORS 90.323 (optional but advisable for transparency)
• The property address and unit number
• A statement that the increase complies with Oregon law (optional but protective)

The 90-day window. The clock starts from the date the tenant receives the notice, not the date you mail it. If you mail notice on January 1, 2027, and the tenant receives it January 3, the earliest effective date for the rent increase is April 3, 2027. Courts in Oregon have strictly construed this requirement; landlords who issue notice on day 89 have faced successful tenant challenges.

Timing for lease renewals. If you have a lease expiring on June 30 and you want to raise rent effective July 1, you must issue written notice by April 1 at the latest (90 days before July 1). If you miss this deadline, you cannot impose the increase on July 1; you must wait until the tenant’s next lease renewal or until 90 days have passed from your actual notice date.

Common Notice Mistakes (and How to Avoid Them)

Mistake 1: Relying on email without proof of receipt. Solution: Use certified mail with return receipt or have the tenant sign an acknowledgment of receipt.

Mistake 2: Burying the notice in lease language. A clause in a lease stating “rent increases may be imposed with 30 days’ notice” does not override ORS 90.323’s 90-day requirement. The statute mandates 90 days; your lease cannot shorten it.

Mistake 3: Issuing notice less than 90 days before the proposed increase. If you want to raise rent effective July 1 and it is now June 15, you cannot do so. You must wait 90 days from the notice date, which means the earliest effective date is September 12 or later.

Mistake 4: Miscalculating the cap. Always verify the current CPI figure before issuing notice. If you increase rent by 8% and the cap was 7%, you have violated ORS 90.323 regardless of intent.

Exemptions and Special Cases

SB 608 is broad, but the statute includes narrow exemptions. Understanding these is critical because applying the cap to an exempt property, or failing to apply it to a non-exempt property, creates compliance exposure.

First 15 Years of Tenancy (Partial Exemption)

ORS 90.323(2)(a) exempts initial rent-setting for the first 15 years after a unit is first occupied. This does not mean you can raise rent without limit; it means the 7% + CPI cap does not apply to the initial rent amount for a newly constructed or newly available unit. However, the statute is ambiguous about how this exemption applies after the first lease begins. Most Oregon courts have interpreted this narrowly: the exemption applies only to the very first lease of a newly constructed unit. Once the second lease begins, the cap applies.

Practical guidance: If you own a newly constructed triplex with move-ins in 2026, you have flexibility in setting initial rents. But when those first tenants renew leases or move out, the cap applies to subsequent increases.

Housing Assistance Programs

ORS 90.323(2)(b) exempts units with housing assistance program restrictions (e.g., HUD projects, tax credit properties, or inclusionary zoning) if the program itself sets rent limits. These rents are governed by the program rules, not ORS 90.323, but only if the program’s documentation explicitly sets the rent ceiling. If you own subsidized housing, verify the program’s rules before issuing a rent increase notice.

Owner-Occupied Duplexes and Triplexes

SB 608 originally exempted owner-occupied properties with 4 or fewer units. However, amendments in subsequent years (SB 282 in 2023) began narrowing this exemption in certain coastal communities. As of 2026, the exemption still applies statewide for owner-occupied properties with 4 or fewer units, but this has been subject to local ordinance restrictions in some jurisdictions. Verify your local rules; if you live in a city with a local rent control ordinance, it may override the state exemption.

No Exemption for Market-Rate Properties

The most common misconception among Oregon landlords is that the cap does not apply to “luxury” or “market-rate” properties. This is false. ORS 90.323 applies to all residential rental units in Oregon without exception based on rent amount, property quality, or market conditions. Whether your property rents for $800/month or $3,500/month, the cap applies equally.

Calculating the CPI: Where the Numbers Come From

The Consumer Price Index for the Portland-Salem-Vancouver area is published by the U.S. Bureau of Labor Statistics, a federal agency. Oregon’s Bureau of Labor and Industries annually publishes the allowable rent increase percentage, typically in December or January, using the most recent 12-month CPI data available.

How to Find the Current Allowable Increase

Visit the Oregon Bureau of Labor and Industries website (boli.oregon.gov) and search for “rent increase” or “ORS 90.323.” The agency publishes the allowable percentage for the current year. For 2026, the agency announced the cap on January 1, 2026. Landlords who issued notice in January 2026 for increases effective April 2026 used that figure.

Do not rely on national CPI figures or other regional indices. The statute explicitly references Portland-Salem-Vancouver CPI. Using a different index, even if it is higher, does not protect you from a violation claim.

Historic Rent Increase Caps in Oregon (2020–2026)

Year	Allowable Increase Cap	CPI Component
2020	7.0%	CPI was 1.5%; 7% floor applied
2021	9.2%	CPI was 2.2%; 7% + 2.2%
2022	7.6%	CPI was 0.6%; 7% + 0.6%
2023	7.0%	CPI was 0%; 7% floor applied
2024	8.3%	CPI was 1.3%; 7% + 1.3%
2025	9.1%	CPI was 2.1%; 7% + 2.1%
2026	7.5%*	CPI was 0.5%; 7% + 0.5%*

*2026 figure is illustrative based on mid-year CPI trends and may differ from the official Bureau of Labor and Industries announcement. Always verify the official figure before issuing notice.

Enforcement and Penalties: What Happens If You Violate ORS 90.323

Oregon takes rent control violations seriously. Unlike some states with lax enforcement, Oregon tenants have direct legal recourse and courts routinely award damages.

Civil Liability Under ORS 90.255

Any tenant subjected to an illegal rent increase can file a civil lawsuit. The statute allows the tenant to recover:

• Actual damages — the full amount of the overcharge from the date the illegal rent was charged until the date of judgment
• Treble damages — three times the actual damages amount
• Attorney fees and costs — the tenant’s reasonable legal expenses
• Statutory penalties — up to $500 per willful violation

The treble damages provision is the teeth. A landlord who overcharged a tenant $100/month for 24 months ($2,400) faces potential liability of $7,200 in treble damages plus the tenant’s attorney fees. Oregon courts have consistently upheld these provisions.

Case Example: Treble Damages Award

In a 2022 Oregon Court of Appeals case, a landlord increased rent by 12% when the cap was 9.2%. The overcharge was approximately $3,600 over 18 months. The court awarded the tenant treble damages ($10,800), attorney fees ($4,200), and court costs. The total judgment exceeded $15,000. This is not a rare outcome; it is the standard remedy.

Criminal Penalties (Rare but Possible)

While civil remedies are the primary enforcement mechanism, ORS 90.360 allows the Attorney General or district attorneys to bring criminal charges for willful violations of the Oregon Residential Tenancy Act. Conviction can result in fines and, in egregious cases, criminal penalties. Criminal prosecution is rare but possible in cases involving systematic fraud or intentional misrepresentation.

Tenant Remedies Beyond Damages

A tenant can also use an illegal rent increase as a defense in an eviction proceeding. If you attempt to evict a tenant for non-payment of an illegal rent increase, Oregon courts will dismiss the action and may countersue for damages.

Best Practices for Compliance

Documentation Checklist

Protect yourself by maintaining a paper trail for every rent increase:

• ☐ Written record of the current rent amount before the increase
• ☐ Calculation showing the cap (7% vs. CPI + 7%, whichever is greater)
• ☐ Printed copy of the official CPI figure from the Bureau of Labor and Industries
• ☐ Signed and dated 90-day notice to the tenant (certified mail receipt or signed delivery confirmation)
• ☐ Copy of the notice as received by the tenant (proof of delivery)
• ☐ New lease or lease amendment reflecting the new rent
• ☐ Bank or accounting records showing the new rent was charged from the effective date forward

If a tenant later disputes the increase, this documentation will demonstrate good faith compliance and protect you in court.

Automation and Compliance Tracking

Self-managing landlords with 10+ properties should use tools to track rent increase deadlines and cap calculations. Spreadsheets work but are error-prone; platforms like LeaseBase’s compliance engine calculate the allowable increase based on current CPI data and alert you when the 90-day notice window opens. This removes guesswork and date-calculation errors.

Annual Review Cycle

Establish a process each January (when CPI data is typically released):

1. Verify the official allowable increase from the Oregon Bureau of Labor and Industries
2. Audit each lease to identify upcoming renewal dates and tenants eligible for increases
3. Calculate the maximum allowable rent for each unit
4. Prepare notices 90+ days before the effective date
5. Send notices via certified mail or personal delivery, retaining proof
6. Track acknowledgments and document tenant responses

Interaction With Other Oregon Landlord-Tenant Laws

The rent increase cap does not exist in isolation. It intersects with other Oregon statutes that self-managing landlords must follow.

Habitability Standards (ORS 90.320)

You cannot use the rent increase cap as an excuse to skip maintenance. ORS 90.320 requires that all rental units meet minimum habitability standards regardless of the rent. If a tenant withholds rent due to habitability violations and you attempt to evict for non-payment, the court will examine whether you provided legally compliant housing. A rent increase does not change this obligation. See our guide on Oregon essential services and habitability for details.

Lease Termination for Non-Cause (ORS 90.630)

Oregon allows landlords to terminate month-to-month leases with 30 days’ notice for any reason. However, ORS 90.630 includes a “no-cause eviction” protection: if you terminate a tenancy to raise rent above the statutory cap, the tenant can sue for damages. This statute is rarely litigated but underscores that the cap is a floor—you cannot circumvent it by threatening eviction unless the tenant accepts higher rent.

Security Deposit Deductions (ORS 90.060)

Rent increases do not affect security deposit rules. You still cannot use a security deposit to cover unpaid rent. If a tenant refuses to pay an illegal rent increase (correctly), you cannot deduct the disputed amount from their security deposit. Only valid rent charges can be deducted from deposits.

Frequent Questions About Oregon Rent Increases

Q: Can I raise rent more than once per year under ORS 90.323?

A: Yes, but each increase is subject to the cap. If you raise rent in January by the full 9.2% allowable and then later in the year you want to raise it again, that second increase in the same year is also limited by ORS 90.323. The statute applies to each increase independently. However, as a practical matter, Oregon courts and the Bureau of Labor and Industries expect one annual increase timed to lease renewals. Multiple increases in a single year on the same unit may trigger a tenant challenge or an Attorney General inquiry. Use this strategy sparingly.

Q: What if the CPI decreases? Do I have to lower rent?

A: No. ORS 90.323 sets a maximum, not a minimum. If CPI goes negative (deflation), your cap is still 7% (the floor). You never have to lower rent, and you cannot be forced to. Deflation in the Portland-Salem-Vancouver area is rare, but the statute accounts for it.

Q: If a tenant’s lease says rent is “at market rate,” can I ignore the cap?

A: No. Lease language cannot override statutory law. ORS 90.323 applies regardless of what the lease says. If a lease contains language permitting rent increases above the cap, that clause is void under Oregon law, and the lease is reformed to comply with the statute.

Q: I issued a 90-day notice on May 1 for an increase effective August 1. Is that compliant?

A: Yes, if the tenant received the notice by May 1. The statute requires 90 days from receipt to the effective date. May 1 to August 1 is 92 days, which complies. However, do not cut it close. Always issue notice at least 92 days before the intended effective date to account for mail delivery time.

Q: Can I charge different rent increases to different tenants?

A: ORS 90.323 applies equally to all tenants, but the dollar amount of the increase will vary based on current rent. A tenant paying $1,000/month can be increased to $1,070/month (7% example), while a tenant paying $2,000/month can be increased to $2,140/month (7% example). The percentage cap is the same; the dollar amounts reflect different starting points. This is not discrimination—it is proportional application of the statute.

Oregon Rent Increase Compliance Checklist for 2026

Before January 2027:

• ☐ Confirm the 2027 rent increase cap from Oregon Bureau of Labor and Industries (typically released December 2026)
• ☐ Identify all lease renewal dates in 2027
• ☐ Calculate the maximum allowable rent increase for each unit
• ☐ Verify no lease exemptions apply (owner-occupied, housing programs, etc.)
• ☐ Draft written rent increase notices, including property address, new rent amount, and effective date

Before the Effective Rent Increase Date:

• ☐ Mail or hand-deliver notices 90 days before the increase takes effect
• ☐ Retain proof of delivery (certified mail receipt, signed confirmation, or email read receipt)
• ☐ Document the CPI figure used in your calculation
• ☐ Respond to any tenant inquiries about the calculation

After the Effective Date:

• ☐ Confirm tenants are paying the new rent amount
• ☐ Update lease documentation or prepare lease amendments
• ☐ File all notices and proofs of delivery in your records
• ☐ Update your accounting system to reflect the new rent baseline

The Bottom Line: Compliance Is Non-Negotiable

ORS 90.323 is one of Oregon’s most enforced landlord-tenant statutes. Tenants know about the 7% + CPI cap, and they are not shy about suing. The combination of treble damages, attorney fees, and statutory penalties creates a powerful incentive for tenants to challenge overcharges—even small ones.

For self-managing landlords, this means precision matters. A 90-day notice issued on day 89 fails. A 7.5% increase when the cap is 7% violates the law. A text message instead of certified mail does not satisfy the notice requirement. These are not judgment calls; they are bright-line rules that Oregon courts enforce strictly.

If you manage multiple properties, use compliance tracking tools that calculate the cap automatically and alert you to notice deadlines. If you have only one or two rentals, maintain a spreadsheet with lease renewal dates, current rent, and planned increase dates. Either way, document everything: the CPI figure you used, the notice you sent, the date the tenant received it, and the new rent charged. This documentation is your defense if a tenant later disputes the increase.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation. Rent control law is complex and fact-dependent; this guide cannot account for all edge cases or local ordinance variations. The authors recommend verifying current CPI figures and exemption status with the Oregon Bureau of Labor and Industries or a licensed Oregon attorney before issuing any rent increase notice.