Announcing Oregon's 2026 Maximum Rent Increase Limit for Long-Term Residential Rentals

Christian Bryant
Oct 9
6 min read

As we head into the new year, landlords and tenants in Oregon need to stay informed about changes to rent control regulations. The Oregon Department of Administrative Services (DAS) has officially announced the maximum allowable rent increase for 2026 at 9.5% for most long-term residential rentals, such as apartments and houses covered under ORS 90.323. This limit applies to properties that are 15 years old or older, with exemptions for newer constructions built within the last 15 years. Note that for manufactured home facilities and marinas with more than 30 spaces, the cap is set at a lower 6%, while those with 30 or fewer spaces follow the 9.5% limit. This adjustment reflects ongoing efforts to balance housing affordability with economic realities for property owners.

Understanding the West Region CPI and Annual Rent Increase Calculations

To appreciate how this 9.5% figure was determined, it's essential to dive into the background of the Consumer Price Index (CPI) and Oregon's rent stabilization formula.

The CPI is a key economic indicator maintained by the U.S. Bureau of Labor Statistics (BLS). It measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, including food, housing, apparel, transportation, medical care, recreation, education, and more. Specifically for Oregon's rent laws, the relevant metric is the CPI for All Urban Consumers (CPI-U) in the West Region, which encompasses 13 states: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. (This is sometimes informally referred to as the "West Coast CPI," though it technically covers a broader western U.S. area.)

The annual change in the West Region CPI-U represents inflation in this region, calculated as the 12-month percent change based on the most recent data available before September 30 each year—typically the data for August, published in mid-September. For the 2026 calculation, the September annual 12-month average change in the CPI-U West Region was 2.5%, reflecting moderated inflation compared to previous years.

Oregon's rent control system, established under Senate Bill 608 in 2019 and updated by subsequent legislation like House Bill 3054, ties maximum rent increases to this CPI metric. According to ORS 90.324, the DAS Office of Economic Analysis calculates the maximum annual rent increase percentage each year by September 30 for the following calendar year using this formula:

Add 7% to the annual 12-month average change in the CPI-U West Region (All Items).
Take the lesser of that sum or 10%.

For 2026:

CPI change = 2.5%
7% + 2.5% = 9.5%
Since 9.5% < 10%, the maximum is 9.5%.

This process ensures rent increases are tied to inflation while providing a cap to protect tenants from excessive hikes. The calculation is published annually on the DAS website, along with supporting data in an Excel file detailing the CPI methodology.

Key Reminders: Rules for Rent Increases in Oregon

While the 9.5% cap is the headline, landlords must adhere to strict rules to implement any increase legally:

One Increase Per Year: Under ORS 90.323, landlords may only raise rent once in any 12-month period. This applies after the first year of tenancy and prevents multiple hikes within a year.
90-Day Notice Requirement: All rent increases require at least 90 days' written notice before the effective date. The notice must clearly state the amount of the increase, the new rent amount, and the date it takes effect. For week-to-week tenancies, only 7 days' notice is needed, but this is rare for long-term rentals.

Failure to follow these rules can result in the increase being invalid, potential penalties, or disputes in court.

How to Serve a Rent Increase Notice in Oregon

Serving the notice correctly is crucial to ensure it's enforceable. According to ORS 90.155, written notices like rent increases can be delivered via the following methods:

Personal Delivery: Handing the notice directly to the tenant or someone of suitable age at the residence.
First Class Mail: Sending via U.S. Postal Service first class mail (certificate of mailing is recommended for proof). The notice is considered served three days after mailing.
Personal Delivery and First Class Mail: Combining both for added security.
Electronic Mail (Email): If the rental agreement requires or allows it (for agreements executed or renewed after June 29, 2023), or if an email address has been provided in writing. If the email bounces or the recipient is unavailable, follow up with first class mail the next business day.

Posting the notice on the door is not typically allowed for rent increases unless other methods fail and it's permitted under specific circumstances for other notices. Always keep records of service, such as mailing receipts or delivery confirmations, to protect against disputes.

Resources for Landlords: Discounts on Forms Through PAROA

As a reminder, members of the Portland Area Rental Owners Association (www.PAROA.com) enjoy discounts on a wide range of landlord forms, including state-specific rent increase notices for Oregon and customized versions for the City of Portland. These forms are designed to comply with current laws, helping you avoid costly errors. If you're not already a member, consider joining to access these tools and other benefits tailored for property owners.

Stay compliant and informed—proper documentation is key to smooth landlord-tenant relationships.

Portland-Specific Considerations: Relocation Assistance for Housing Cost Increases

While Oregon's statewide rent stabilization laws provide a framework for rent increases, landlords operating within the City of Portland must also comply with additional local ordinances, including the Mandatory Renter Relocation Assistance program. This ordinance is designed to protect tenants from displacement due to significant cost increases or other qualifying actions.

Specifically, if a landlord issues a notice increasing a tenant's Rent or Associated Housing Costs by 10% or more over a rolling 12-month period, this triggers the relocation assistance requirement. Upon receiving such a notice, the tenant has the right to terminate the tenancy and receive a one-time relocation payment from the landlord, or they may choose to accept the increase and remain in the unit without receiving the payment.

What Counts as "Associated Housing Costs"?

Associated Housing Costs include, but are not limited to, any fees, utility charges, or service charges that are fixed and paid periodically to the landlord for the use of the property. This encompasses:

Basic rent charges.
Monthly fees for services like parking, storage, or amenities.
Fixed utility or service charges (e.g., a flat fee for water or trash).

However, usage-based utility charges (e.g., metered electricity paid based on consumption) are generally excluded unless the rental agreement is changed to shift such costs to the tenant in a way that increases their overall housing expenses. These costs are "controlled by the landlord" if they are set or modified through the rental agreement or notices issued by the landlord.

Importantly, even if the base rent increase stays below the statewide cap (9.5% for 2026), combining it with increases in associated housing costs could push the total over the 10% threshold, triggering the obligation. For properties exempt from the statewide rent cap—such as buildings constructed within the last 15 years—a rent increase alone of 10% or more would also activate this rule.

Relocation Assistance Amounts

The amount of relocation assistance depends on the size of the dwelling unit:

Unit Type	Assistance Amount
Studio or Single Room Occupancy (SRO)	$2,900
1-Bedroom	$3,300
2-Bedroom	$4,200
3-Bedroom or larger	$4,500

Payments must be made within a specified timeframe after the tenant notifies the landlord of their intent to relocate, and failure to comply can result in penalties, including up to three times the assistance amount plus actual damages.

Other Triggers and Exemptions

Beyond housing cost increases, relocation assistance is also triggered by:

No-cause evictions.
Non-renewal of a fixed-term lease (without converting to month-to-month).
Qualified landlord reasons for termination (e.g., owner move-in).
Substantial changes to lease terms that significantly impact the tenant.

Certain exemptions apply, such as for week-to-week tenancies, shared housing with the landlord, or regulated affordable housing units. Most exemptions require pre-approval from the Portland Housing Bureau (PHB) via an application process, and landlords must provide documentation to tenants.

Given the interplay between state and city rules, landlords should carefully calculate any proposed increases to avoid unintended triggers. For Portland-specific rent increase notices that incorporate relocation assistance language, www.PAROA.com members receive discounts on compliant forms.