Key Takeaways
- Oregon exempts units less than 15 years old from the first certificate of occupancy
- For 2026, units with a CoO after January 1, 2011 are exempt from the rent cap
- The exemption is a rolling window that shifts every January 1 — properties age out of it
- Exempt properties are still subject to just cause eviction protections after year one
- Portland’s relocation assistance applies to exempt properties if rent increases 10%+
Oregon’s 15-Year New Construction Exemption
Oregon’s statewide rent cap under SB 608 includes a significant exemption for newer construction. Units that are less than 15 years old from the date of their first certificate of occupancy are exempt from the rent increase cap. This means landlords of these properties can raise rent by any amount, at any time (subject to notice requirements), without being limited by the 7% + CPI formula.
The purpose of this exemption is to encourage new housing construction by assuring developers and investors that their initial returns will not be capped during the early years of a building’s life. The legislature reasoned that rent control on brand-new construction could discourage development at a time when Oregon desperately needed new housing supply.
How to Calculate Whether Your Property Is Exempt
The calculation is straightforward: subtract the certificate of occupancy year from the current year. If the result is less than 15, the property is exempt.
For 2026:
Exempt if certificate of occupancy was issued after January 1, 2011
Example: CoO issued June 2012 → 2026 – 2012 = 14 years → EXEMPT
Example: CoO issued March 2010 → 2026 – 2010 = 16 years → NOT EXEMPT
Example: CoO issued December 2011 → 2026 – 2011 = 15 years → NOT EXEMPT (must be LESS than 15)
Year-by-Year Exemption Expiration
| Calendar Year | Exempt If CoO After | First Year of Coverage for CoO Issued |
|---|---|---|
| 2024 | January 1, 2009 | 2009 |
| 2025 | January 1, 2010 | 2010 |
| 2026 | January 1, 2011 | 2011 |
| 2027 | January 1, 2012 | 2012 |
| 2028 | January 1, 2013 | 2013 |
| 2029 | January 1, 2014 | 2014 |
| 2030 | January 1, 2015 | 2015 |
The key detail is that this is a rolling window. Every January 1, the window shifts forward by one year. A property that was exempt yesterday may lose its exemption on January 1 of the next year. Landlords who rely on this exemption must track the expiration date for each property and plan their rent strategy accordingly.
What Happens When the Exemption Expires
When a property’s 15-year exemption expires, the rent cap begins applying to that property immediately. The landlord can no longer raise rent above the annual cap (7% + CPI, currently 9.5% for 2026). However, the existing rent at the time of expiration becomes the new baseline — there is no requirement to roll back rent to what it would have been under the cap.
This creates an important strategic consideration. If you own a property approaching the end of its exemption window, you may want to adjust rent to market rate before the exemption expires. Once the cap takes effect, you are limited to annual increases of 7% + CPI (or 10% maximum), which means it could take years to reach market rate through incremental increases.
Example: Transitioning Out of Exemption
Property CoO: 2012
Exemption expires: January 1, 2027
Current rent (2026): $1,500/month
Market rent: $2,000/monthOption A: Raise to $2,000 before Jan 1, 2027 (while still exempt) — allowed
Option B: Wait until 2027, then raise $1,500 → $1,642 (9.5% cap) — would take 4+ years to reach marketNote: If in Portland, Option A would trigger $2,900–$4,500 relocation assistance (33% increase > 10%)
Oregon vs California vs Washington: Comparing Exemption Windows
All three West Coast rent control states include new construction exemptions, but the windows differ:
| State | Exemption Window | Measured From | 2026 Exemption Cutoff |
|---|---|---|---|
| Oregon (SB 608) | 15 years | First certificate of occupancy | CoO after Jan 1, 2011 |
| California (AB 1482) | 15 years | Certificate of occupancy | CoO after Jan 1, 2011 |
| Washington (HB 1217) | 12 years | First certificate of occupancy | CoO after Jan 1, 2014 |
Oregon and California share the same 15-year window, while Washington uses a shorter 12-year window. This means a property built in 2013 would be exempt in Oregon and California but subject to the rent cap in Washington. Landlords with properties in multiple West Coast states need to track different exemption timelines for each property.
The policy rationale behind different windows reflects different legislative priorities. Washington’s shorter 12-year window was a compromise during the HB 1217 debate — shorter exemptions mean more properties are covered by rent caps sooner, providing broader tenant protection. Oregon and California’s longer 15-year windows provide more runway for developers to achieve market returns before caps take effect.
Certificate of Occupancy: What Counts
The exemption is measured from the first certificate of occupancy (CoO), not from the date the building was purchased, the date the current owner acquired it, or the date of any renovation. This distinction matters in several scenarios:
Renovated Properties
If you purchase a building constructed in 1990 and perform a complete renovation in 2020, the property is not exempt. The CoO dates to 1990 (or whenever the original building first received its CoO), which is well beyond the 15-year window. Renovations, no matter how extensive, do not reset the CoO date unless the building is demolished and a entirely new structure is built.
Converted Properties
If a commercial building is converted to residential use, the relevant date is the residential certificate of occupancy. If a warehouse built in 2000 receives a residential CoO in 2018 after conversion, the 15-year window starts from 2018, and the property would be exempt through 2032.
Phased Developments
In multi-building developments where buildings receive separate certificates of occupancy at different times, each building’s exemption is calculated independently. Building A with a 2010 CoO would not be exempt in 2026, while Building B with a 2015 CoO would remain exempt through 2029.
How to Find Your CoO Date
If you don’t know your property’s certificate of occupancy date, you can:
- Check with your local city or county building department
- Review your property’s records on the county assessor’s website (often listed as “year built”)
- Request a copy of the original CoO from the jurisdiction that issued it
- Check title company records from your purchase closing
Note that “year built” on the assessor’s records may differ from the actual CoO date by a year or more, depending on construction timelines and permit processing. For properties near the 15-year boundary, the actual CoO date matters — rely on the official certificate, not the assessor’s estimated year.
Other Oregon Exemptions
The 15-year rule is the most common exemption, but Oregon also exempts two other categories from the rent cap:
Subsidized Housing
Units subject to federal, state, or local rent subsidies or rent restrictions through regulatory agreements are exempt from the SB 608 rent cap. This includes Section 8 project-based units, Low Income Housing Tax Credit (LIHTC) units, and units with other deed restrictions that already limit rents. The logic is that these units already have government-mandated rent limits that typically are stricter than the statewide cap.
Week-to-Week Tenancies
Tenancies where rent is paid on a week-to-week basis are exempt from the rent cap. This applies primarily to SRO (single room occupancy) hotels and similar short-term residential arrangements. Month-to-month and fixed-term leases are not exempt under this provision, even if the tenant pays weekly installments.
What the Exemption Does NOT Remove
The 15-year exemption only removes the rent cap. It does not exempt properties from:
- Just cause eviction protections — after the first year, no-cause terminations are banned even for exempt properties. The landlord must cite a qualifying reason under ORS 90.427.
- Notice requirements — the 90-day notice requirement for rent increases applies to all properties, exempt or not.
- One-increase-per-12-months rule — even exempt properties can only raise rent once per 12 months.
- Portland’s relocation assistance — if you raise rent 10% or more on an exempt property in Portland, you still owe relocation assistance ($2,900–$4,500 by unit size). The exemption removes the state cap but not the city’s relocation trigger.
- Portland’s Rental Registration Program — registration is required for all rental units in Portland.
- Portland’s screening criteria limitations — these apply to all landlords in Portland.
This is the most common misconception among landlords of newer properties. Being exempt from the rent cap does not mean you operate in an unregulated environment. Just cause eviction, notice requirements, and local ordinances still apply fully.
Strategic Considerations for Landlords
Properties Approaching Exemption Expiration
If your property’s exemption will expire within the next 1–3 years, consider:
- Adjust rent to market rate now. Once the cap takes effect, you can only increase by 7% + CPI annually. If your rent is significantly below market, the gap will widen each year under the cap.
- Factor in Portland relocation costs. If you’re in Portland and your market adjustment exceeds 10%, the relocation cost may eat into or exceed the near-term benefit of the increase.
- Document the CoO date. Ensure you have the official certificate of occupancy on file. If a tenant challenges your exemption claim, you need documentation.
- Plan notice timing. Even exempt properties require 90 days’ notice. If your exemption expires January 1, 2027, you need to serve notice by October 2, 2026 for the increase to take effect before the cap kicks in.
Properties Currently Exempt
If your property has many years of exemption remaining, you have flexibility on rent increases but should still:
- Track the expiration date and plan for the transition to cap coverage
- Be aware of Portland’s 10% relocation trigger, which applies regardless of exemption
- Comply with the 90-day notice requirement and one-increase-per-12-months rule
- Remember that just cause eviction protections apply after the first year
Frequently Asked Questions
Is my Oregon rental exempt from rent control?
Your property is exempt from the rent cap if it is less than 15 years old from the date of its first certificate of occupancy. For 2026, this means units with a CoO issued after January 1, 2011 are exempt. Subsidized housing and week-to-week tenancies are also exempt. Use the Oregon Rent Cap Calculator to check your specific property.
What happens when my 15-year exemption expires?
The rent cap begins applying immediately. Your current rent becomes the new baseline, and future increases are limited to 7% + CPI (or 10% maximum). There is no rent rollback. If your rent is below market, consider adjusting before the exemption expires.
Does a major renovation reset the 15-year clock?
No. The exemption is based on the first certificate of occupancy, not the date of renovation. Only demolition and construction of an entirely new building (with a new CoO) resets the clock. Gut renovations, seismic upgrades, and other major work do not qualify.
How does Oregon’s exemption compare to California and Washington?
Oregon and California both use a 15-year window from the certificate of occupancy. Washington uses a shorter 12-year window. A property built in 2013 is exempt in Oregon and California but covered in Washington. All three states measure from the first certificate of occupancy.
Do exempt properties have to follow just cause eviction rules?
Yes. The exemption only removes the rent cap. Just cause eviction protections under ORS 90.427 apply to all residential properties after the first year of tenancy, regardless of exemption status. Notice requirements and the one-increase-per-12-months rule also apply.
Track Your Exemption Automatically
The 15-year window is a moving target that shifts every year. LeaseBase tracks exemption expiration dates automatically for every property in your portfolio and alerts you before a property transitions from exempt to cap-covered. You can plan your rent strategy years in advance instead of being caught off guard.