Oregon Rent Increase Limits 2026: 9.5% Cap Explained

Oregon’s Rent Cap for 2026: The 9.5% Maximum Explained

Oregon’s statewide rent cap for 2026 is 9.5%. This is calculated using the formula established by Senate Bill 608 (2019): 7% plus the Consumer Price Index. For 2026, the West Region CPI-U 12-month average is 2.5%, producing a combined rate of 9.5%. Because this falls below the 10% hard cap added by SB 611 in 2023, the formula result applies directly.

This makes Oregon’s 2026 cap slightly lower than Washington’s 9.68% (under HB 1217) and higher than most California regions under AB 1482, where caps range from roughly 6.3% to 8.8% depending on the metro area. Oregon’s single statewide rate simplifies compliance compared to California’s multi-region approach, but the formula itself is more generous to landlords than California’s 5% + CPI baseline.

How Oregon Became the First State with Statewide Rent Control

When Governor Kate Brown signed SB 608 on February 28, 2019, Oregon became the first state in American history to enact statewide rent control. The legislation emerged from a housing affordability crisis that had been building across the state for years. Portland, Eugene, and Bend were experiencing rapid rent growth that was displacing long-term residents, and the legislature acted before any of these cities had passed their own comprehensive rent control measures.

SB 608 established two core protections. First, it capped annual rent increases at 7% plus the Consumer Price Index — a formula designed to exceed typical inflation but prevent sudden, dramatic increases. Second, it created statewide just cause eviction protections after the first year of tenancy, preventing landlords from using no-cause terminations as a backdoor way to reset rents to market rate.

The original law did not include an absolute ceiling on rent increases. In years when inflation spiked, the 7% + CPI formula could produce caps well above 10%. This became a practical concern during the post-pandemic inflation surge of 2022-2023, when CPI figures climbed above 5% in many regions. In response, the legislature passed SB 611 in 2023, adding a 10% hard cap as an absolute maximum. The effective cap is now always the lower of 7% + CPI or 10%.

The Formula: 7% + CPI, Capped at 10%

Oregon’s rent cap formula is straightforward:

• Base rate: 7%
• Plus CPI: West Region CPI-U, 12-month average
• Hard cap: 10% maximum (SB 611)
• Effective cap: The lower of (7% + CPI) or 10%

Unlike California, which uses multiple metropolitan area CPI figures (Sacramento-Roseville, LA-Long Beach-Anaheim, SF-Oakland-Berkeley, San Diego, Riverside), Oregon uses a single regional CPI figure for the entire state. This is the West Region CPI-U 12-month average, as published by the Bureau of Labor Statistics. The Oregon Department of Administrative Services (DAS) Office of Economic Analysis takes this data and publishes the official maximum allowable rent increase percentage by September 30 each year for the following calendar year.

2026 Calculation

Base rate: 7.0%
West Region CPI-U (12-month average): 2.5%
Formula result: 7.0% + 2.5% = 9.5%
10% hard cap check: 9.5% < 10% — cap does not apply
2026 effective cap: 9.5%

Example: Portland 2-Bedroom at $1,800/month

Current rent: $1,800/month
Maximum increase: 9.5%
Maximum dollar increase: $1,800 × 0.095 = $171.00
Maximum new rent: $1,971.00
Notice required: 90 days written notice

How Oregon Compares to Washington and California

All three West Coast states now have statewide rent caps, but the formulas, CPI sources, and exemption windows differ in important ways:

Feature	Oregon (SB 608)	Washington (HB 1217)	California (AB 1482)
Formula	7% + CPI	7% + CPI	5% + CPI
Hard cap	10%	10%	10%
2026 effective cap	9.5%	9.68%	~6.3%–8.8% (by region)
CPI source	West Region CPI-U	Seattle-Tacoma-Bellevue CPI-U	Metro-specific CPI
New construction exemption	15 years from CoO	12 years from CoO	15 years from CoO
Rent increase notice	90 days	90 days (180 in Seattle)	30 days (≤10%)
Just cause eviction	After first year	From day one	After 12 months
Vacancy decontrol	Yes	Yes	Yes
Published by	OR DAS by Sep 30	WA Dept of Commerce	BLS data (Aug cycle)

The most notable difference is the base rate. Oregon and Washington both use a 7% base, while California uses a more restrictive 5% base. This means Oregon and Washington landlords can generally raise rents more than their California counterparts in any given year. However, Oregon’s 90-day notice requirement is significantly stricter than California’s 30-day requirement for increases at or below 10%.

The One-Increase-Per-12-Months Rule

Oregon law limits landlords to one rent increase per 12-month period. This is measured from the effective date of the last increase, not from the date the notice was served. The rule prevents landlords from imposing multiple smaller increases that collectively exceed the annual cap.

For example, if your last rent increase took effect on March 1, 2026, the earliest your next increase can take effect is March 1, 2027. You must provide 90 days’ written notice, which means the notice must be served by December 1, 2026 for a March 1, 2027 effective date.

This rule applies regardless of whether the property is exempt from the rent cap itself. Even if your property qualifies for the 15-year new construction exemption, you are still limited to one increase per 12 months.

When the Cap Changes: The September 30 Publication Cycle

Oregon’s rent cap follows a calendar-year cycle. The Oregon DAS Office of Economic Analysis publishes the official maximum allowable rent increase percentage by September 30 each year for the following calendar year. The new rate takes effect on January 1.

This differs from California, where new CPI rates take effect August 1 based on April-to-April BLS data, and from Washington, which also uses a calendar-year cycle but relies on June CPI data.

For practical compliance, this means Oregon landlords know their maximum increase rate for the entire upcoming year by October 1. You can plan your rent increase strategy for the following year with certainty, which is a significant advantage over states with rolling or mid-year rate changes.

Practical Compliance Steps for Oregon Landlords

1. Check the DAS publication each October. The official maximum rent increase percentage is published by September 30. Bookmark the Oregon DAS Office of Economic Analysis page and check it annually.
2. Calculate your specific maximum. Multiply your current rent by the published cap rate. Use the Oregon Rent Cap Calculator to factor in exemptions, Portland relocation triggers, and manufactured housing rules.
3. Serve notice 90+ days before the effective date. Oregon requires 90 days’ written notice for rent increases on month-to-month tenancies. Build this lead time into your calendar.
4. Track the 12-month rule. Note the effective date of each increase. You cannot increase rent again within 12 months of the last effective date.
5. Verify your exemption status annually. The 15-year window shifts every January 1. A property exempt in 2026 may lose its exemption in 2027.
6. Check Portland-specific requirements. If your property is in Portland, verify relocation assistance obligations, rental registration status, and screening compliance.
7. Document everything. Keep copies of all rent increase notices, delivery confirmations, and calculations showing your increase is within the cap.

What Happens If You Exceed the Cap?

Oregon law allows tenants to challenge rent increases that exceed the allowable cap. If a landlord imposes an increase above the maximum, the tenant can refuse to pay the excess amount and the landlord cannot terminate the tenancy for nonpayment of the excess portion. Tenants may also file complaints with the Oregon Bureau of Labor and Industries or pursue civil action to recover excess rent paid.

There is no formal penalty structure comparable to California’s punitive damages framework, but the practical consequences of exceeding the cap — including potential lawsuits, forced rent rollbacks, and reputational damage — make compliance essential. Errors are most commonly caused by landlords who don’t check the annual DAS publication or who miscalculate the 12-month interval between increases.

Manufactured Housing: A Separate Compliance Track

If you own or operate a manufactured home park with 30 or more spaces, you are subject to a separate 6% annual rent increase cap under HB 3054 (2025), regardless of the CPI. Smaller parks (30 or fewer spaces) follow the standard 7% + CPI formula. This distinction is critical — applying the wrong cap could expose you to tenant challenges and forced rent rollbacks. Read our complete guide to Oregon’s manufactured home rent cap for details.

Frequently Asked Questions

What is the Oregon rent cap for 2026?

The maximum annual rent increase in Oregon for 2026 is 9.5%, calculated as 7% plus the West Region CPI-U 12-month average of 2.5%. The 10% hard cap does not apply because 9.5% is already below 10%. For manufactured home parks with 30 or more spaces, a separate 6% cap applies under HB 3054.

How does Oregon calculate the rent cap?

Oregon uses the formula: 7% + West Region CPI-U (12-month average), with a hard cap of 10%. The Oregon DAS Office of Economic Analysis publishes the official maximum by September 30 each year for the following calendar year. Unlike California, Oregon uses a single statewide CPI figure rather than metro-specific rates.

When does the Oregon rent cap change?

The new rate is published by September 30 and takes effect January 1 of the following year. For 2026, the 9.5% rate was published by September 30, 2025, and applies to all rent increases with effective dates in calendar year 2026.

How does Oregon compare to Washington and California?

Oregon and Washington both use a 7% + CPI formula, while California uses 5% + CPI. All three cap at 10%. Oregon’s 2026 rate is 9.5%, Washington’s is 9.68%, and California varies by region (6.3%–8.8%). Oregon requires 90 days’ notice, matching Washington’s statewide minimum but far exceeding California’s 30 days.

Can I increase rent more than once in a year?

No. Oregon law limits landlords to one rent increase per 12-month period. The 12 months is measured from the effective date of the last increase, not from when notice was served. This rule applies regardless of whether the property is exempt from the rent cap.

Stay Compliant Without the Guesswork

Oregon’s rent cap is simpler than California’s multi-region system, but the Portland overlay, manufactured housing rules, and just cause eviction protections create real compliance complexity. LeaseBase tracks SB 608 compliance automatically for every property in your portfolio — including the annual cap rate, notice deadlines, exemption expiration dates, Portland relocation triggers, and manufactured housing caps. You see a clear dashboard instead of guessing whether you’re compliant.

Related reading

• Oregon Rent Cap Calculator
• Portland Relocation Assistance: Raise Rent 10% and You Owe Up to $4,500
• Oregon’s 15-Year Exemption: When Your Rental Isn’t Covered
• No-Cause Evictions in Oregon: What Changed After Year One
• Oregon Manufactured Home Park Rent: The Separate 6% Cap
• Washington Rent Cap Calculator

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