Oregon Rent Increases in 2026: A Landlord’s Step-by-Step Guide to the 9.5% Cap and Keeping Good Tenants

Christian Bryant
Jan 21
4 min read

By Christian Bryant

Hey, fellow Oregon landlords—January 2026 is underway, and a lot of us are planning rent adjustments for the coming months. The state capped the maximum allowable increase at 9.5% this year (7% + CPI). That gives us room to cover rising costs, but only if we handle it correctly. Mess it up, and you could face disputes, lose good tenants, or—in Portland—trigger mandatory relocation payments.

Let’s break it down step by step so you can move forward with confidence while keeping great tenants in place.

Portland Oregon apartment building rental property 2026 — Planning your 2026 rent adjustment in the Portland metro area?

What the 2026 Cap Actually Means

Oregon’s rent stabilization law limits most protected properties to a 9.5% maximum increase in any 12-month period. The Oregon Department of Administrative Services announced this cap last fall.

Fully or partially exempt properties include:

Newer buildings (certificate of occupancy issued within the last 15 years)
Subsidized housing
Certain other categories

If your property is exempt from the state cap, Portland’s local rules may still apply.

When You Can Raise Rent

Fixed-term leases: Generally only at renewal, unless your lease explicitly allows mid-term increases.
Month-to-month tenancies: Requires at least 90 days’ written notice.

Only one increase is allowed in any rolling 12-month period.

Step-by-Step Notice Process

Calculate the new rent accurately (examples below).
Prepare written notice (90 days for month-to-month or include with renewal offer).
Include required details: current rent, new rent, effective date, and statement that the increase complies with state law.
Serve properly: first-class mail plus proof (certified mail, personal delivery, or mail with certificate).
Keep records of service.

Sample 90-day notice wording (adapt as needed, but highly reccommended that you purchase from www.paroa.com ):

Dear [Tenant Name], This is your 90-day notice of rent increase under ORS 90.323. Current monthly rent: $1,800 New monthly rent effective April 1, 2026: $1,971 This 9.5% increase complies with Oregon’s 2026 rent stabilization limit. We value you as a tenant and are happy to discuss any questions. Sincerely, [Your Name/Property Manager]

Calculating the Increase Correctly

Small math errors can invalidate the whole notice.

Example 1: Current rent $2,000 → max increase $190 → new rent $2,190 Example 2: Current rent $1,750 → max increase $166.25 → new rent $1,916.25

Calculating Oregon rent increase with calculator and lease — Calculating a compliant 9.5% rent increase—simple when you know the steps.

Pro tip: While the law allows up to 9.5%, many experienced landlords apply smaller increases—typically 3–5%—for reliable, on-time-paying tenants. Turnover costs (vacancy, cleaning, marketing, leasing) almost always outweigh the extra $20–$40 a month you might gain by going to the max.

Portland-Specific Alert: The 10% Relocation Assistance Trigger

Inside the City of Portland, the local renter protection ordinance (PCC 30.01.085) adds an important layer. Relocation assistance is triggered when a landlord raises rent or any landlord-controlled fixed monthly housing costs by 10% or more (combined) within any 12-month period and the tenant chooses to terminate the tenancy after receiving the notice.

“Landlord-controlled fixed monthly housing costs” means base rent plus any fixed fees you set—such as assigned parking, fixed garbage/recycling fees, flat utility fees, or clubhouse/storage fees. Variable charges that fluctuate with usage (for example, RUBS amounts based on actual consumption) do not count toward the 10% calculation because they are not a fixed increase chosen by the landlord.

Since the state caps base rent at 9.5% in 2026, a pure base-rent increase alone will stay under Portland’s 10% threshold. However, if you are simultaneously raising any fixed landlord-controlled fees, add the percentage impact of those increases to the base-rent increase. If the total reaches 10% or more, relocation assistance may be required (current amounts range from approximately $2,900–$4,500 depending on household size).

Plan carefully—most Portland landlords intentionally keep the combined increase below 10% to avoid the expense and paperwork.

Communication and Retention Best Practices

Present the increase positively: highlight property improvements, rising taxes/insurance, or the value you place on their tenancy. Offer small concessions when possible (fresh paint, minor repairs, or a small rent credit). Timing the notice with a renewal offer that emphasizes stability often improves retention dramatically.

Landlord and tenant positive relationship Portland Oregon rental — Good communication helps keep great tenants through rent adjustments.

Common Pitfalls to Avoid

Raising rent mid-fixed-term without lease permission
Incorrect service or missing proof
Math errors or improper rounding
In Portland, unintentionally pushing combined base rent + fixed landlord-controlled fees to 10% or above
Forgetting that fair housing rules always apply

If a Tenant Objects or Refuses to Pay

Document everything. If they don’t pay the new amount, you may issue a 10-day nonpayment notice (or follow longer local timelines). Mediation can sometimes save a good tenancy—eviction is expensive for everyone.

Proactive Tips for 2026

Pair modest increases with visible upgrades (landscaping, lighting, appliances) so tenants feel they’re getting value. Long-term renewals with built-in smaller annual bumps often keep occupancy high and turnover low.

Bottom line: a thoughtful, compliant rent adjustment protects your income and your tenancy.

For sample notices, templates, and ongoing legislative updates, join PAROA at www.PAROA.org.

If you’re tired of tracking every rule change and would rather hand the day-to-day compliance to professionals, visit Northwest Rental Property Management at www.NWRPM.com.

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