How Much to Raise Rent in 2027: Run the Renewal Math Before You Pick 10%
Every fall I get the same question: how much should I raise rent next year? This year the question comes with a big number attached. The State of Oregon set the 2027 maximum at 10%, the highest ceiling we've seen under the rent cap law. A lot of owners hear that and assume 10% is the new normal. It isn't, and for a lot of units it's the wrong answer.
We already covered the legal side in our post on Oregon's 2027 rent cap: the ceiling, the notice calendar and the Portland tripwire. This post is about the business decision. How much to raise rent in 2027 comes down to one comparison: what the increase earns you versus what a turnover costs you.
How much to raise rent in 2027 starts with the ceiling
Let's get the legal guardrails out of the way. For tenancies covered by ORS 90.323, the Oregon DAS maximum for 2027 is 10%. You still need 90 days' written notice, only one increase in 12 months, and no increase in the first year. Newer buildings (first certificate of occupancy less than 15 years before the notice) are exempt from the percentage but not from the notice rules.
That's the ceiling. Everything below it is your call, and that's where the money is made or lost.
Step one: what does the market actually say?
The cap tells you what's legal, not what the market will pay. In our recent look at the Portland apartment market, vacancy was around 6.3% while rents held roughly flat. That's not a market that rewards aggressive renewals. A tenant who sees a 10% increase can open a listing site and find comparable units at today's rent, sometimes with move-in specials.
Before you set a number, pull five or six active listings that match the unit: same neighborhood, same bedroom count, similar condition and amenities. If your renewal rent would land above those listings, expect the tenant to shop.
Step two: price the turnover
Most owners underestimate turnover because the costs are spread out. Add them up for one unit:
Lost rent while the unit sits empty. One month on an $1,800 unit is $1,800.
Make-ready: paint, cleaning, carpet or floor repairs, small fixes.
Leasing time and costs: photos, listings, showings, screening.
Risk: a new tenant is a new unknown. The one you have pays on time.
Using illustrative numbers on an $1,800 unit: a 10% increase brings in $2,160 over a year. A 5% increase brings in $1,080. One vacant month plus about $2,500 in turnover and leasing costs is $4,300. If the bigger increase causes a move-out, you can lose more than two years of the extra rent in one turnover.
and now a couple shameless plugs.
PAROA members get landlord forms written for Oregon law, including rent increase notices, plus member support when you're not sure how a rule applies to your unit. If you manage your own rentals, the Portland Area Rental Owners Association (PAROA) is built for you.
Don't want to run renewal numbers on every unit yourself? Northwest Real Estate and Property Management (NWRPM) prices renewals, serves the notices and keeps good tenants in place for owners across the Portland Metro and Central Oregon areas.
Step three: in Portland, 10% is also the relocation trigger
If your rental is inside Portland city limits, Portland City Code 30.01.085 says an increase of 10% or more in a rolling 12-month period lets the tenant request relocation assistance within 45 days. The amounts are $2,900 for a studio, $3,300 for a one-bedroom, $4,200 for a two-bedroom and $4,500 for three bedrooms or more. You pay within 31 days of the request.
So in Portland, the full state maximum is also the exact number that triggers the payment. On a two-bedroom at $1,800, a 10% increase earns $2,160 over a year and can cost $4,200 up front, plus a likely move-out. A 9.9% increase does not trigger the city rule. That's why many Portland owners who want a meaningful increase stop below the line.
The city's policy may change. A lower trigger was discussed at a September 2026 council committee briefing, as we covered in our relocation assistance post. Nothing has been adopted, but if you're planning multi-year increases in Portland, keep an eye on it.
Step four: decide by tenant, not by spreadsheet
Blanket increases are easy. They're rarely smart. Sort your units into three groups:
Long-term, low-maintenance tenants who pay on time: protect these relationships. A modest increase that keeps them is usually the best return.
Units well below market after years of small increases: you may have room for a larger step, but consider two smaller steps over two years.
Tenancies with ongoing problems: the rent increase is not the tool for that. Use your lease and the law.
Step five: get the notice right
Whatever number you choose, the notice has to be correct. It must state the amount of the increase, the new rent and the effective date, and it must give at least 90 days, plus three days if you mail it. In Portland, any increase notice must also include the description of the tenant's relocation rights the city requires. Keep proof of service.
and now a couple shameless plugs.
Want help with the notice itself? PAROA members can use our landlord forms and get answers when a rule is unclear.
Want someone else to handle the whole renewal? NWRPM manages renewals, notices and documentation so you don't have to.
Three renewal scenarios
The seven-year tenant at $1,550
She pays on time, calls only when something's actually broken, and the unit could probably rent for $1,800 today. A 10% increase gets you to $1,705. A 5% increase gets you $1,627.50. If she leaves either way, you lose a month and pay to turn a unit that hasn't been painted in seven years, which won't be cheap. For a tenant like this, a moderate increase now and another next year usually beats one big jump.
The one-year tenant already at market
He's paying $1,795 and comparable listings are at $1,800 with a free half month. There's no room. Even 3% may push him to shop. This is where a small increase, or holding flat in exchange for a longer lease term, can be the best call.
The Portland two-bedroom that's far below market
It's at $1,450 and the market says $1,750. The gap is tempting, but a 10% increase triggers relocation assistance. A 9.5% increase to about $1,587 doesn't, and you can take another step in 12 months. Two steps under the line can get you close to market without writing a $4,200 check.
Mistakes we see at renewal time
Applying the same percentage to every unit because it's easier to track.
Picking the number in January when the notice deadline for a March increase was in November.
Forgetting that the 12-month clock is rolling. A raise in March 2027 means the next one can't take effect until March 2028.
Treating a tenant's silence as acceptance. Plenty of tenants say nothing and then give notice 30 days before the increase.
Not talking to the tenant at all. A short conversation about the increase and why you're making it goes a long way.
And keep good notes. If anyone ever questions why one tenant got 4% and another got 8%, you want a written, business reason for each decision, like market comparisons, length of tenancy and the condition of the unit, not a guess you can't explain.
The short answer
How much to raise rent in 2027? Enough to keep up with your costs and the market, and not so much that you trade a good tenant for a vacancy. For many Oregon owners that's well under 10%. In Portland, it's almost always under 10%. Run the numbers unit by unit, write down why you picked each number, and serve your notices early.
This post is general education, not legal advice. Confirm current law before serving any notice.
Christian Bryant
President of both the Portland Area Rental Owners Association (PAROA)
Join PAROA for Oregon landlord forms, member support and plain-English updates on rent increase rules.
Own rentals in the Portland Metro or Central Oregon areas? Hire NWRPM for full management or eviction processing, including renewal pricing and notices.
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