2026 Rent Increase Caps, State by State
California, Oregon, and Washington all adjusted their allowable rent increases this year. Here's what small landlords need to know before serving a notice.
Statewide rent caps changed in three jurisdictions this year, and a handful of cities quietly tightened their own ordinances. If you own rentals in California, Oregon, or Washington — or in any city with local rent stabilization — the ceiling on your next increase is probably lower than it was in 2025.
California (AB 1482)
The statewide cap remains the lesser of 5% + regional CPI or 10% annually, but the CPI figures used to compute the 2026 ceiling dropped meaningfully in the Bay Area and Los Angeles metro. For most covered units, the effective cap runs between 7.6% and 8.4% depending on the region.
Oregon (SB 611)
Oregon's formula shifted to the lesser of 7% + CPI or 10%. The Department of Administrative Services published the 2026 maximum at 10.0%, unchanged from last year's ceiling, but the underlying CPI component is lower — expect that to change in 2027.
Washington (HB 1217)
Washington's first-ever statewide cap took effect mid-2025 and applies to full increases from January 2026 onward. The cap is 7% + CPI, not to exceed 10%.
What to do before serving a rent increase notice
Confirm three things: (1) whether your unit is exempt (most single-family homes owned by individuals are), (2) the correct notice period for your state, and (3) whether a local ordinance overrides the state cap. Then generate the notice with the current CPI-adjusted figure, not last year's.