Oregon's Annual Rent Increase Cap

In Oregon, a landlord can raise rent by a maximum of 7% per year, or the percentage increase in the Consumer Price Index (CPI) for the Portland-Salem-Eugene area during the prior 12 months, whichever is lower. This means the actual allowable increase changes each year based on inflation data released by the U.S. Bureau of Labor Statistics.

The CPI calculation uses the 12-month period ending in September of the prior year. For example, a rent increase that takes effect in 2024 is based on the CPI from September 2022 to September 2023. If that CPI increase was 3.2%, a landlord could raise rent by 3.2% rather than the 7% cap, because 3.2% is lower.

This law applies to most residential tenancies in Oregon, with a few exceptions. Month-to-month tenants and tenants in the first year of a lease have different protections, which are covered in the sections below.

Key Takeaways

  • Oregon limits annual rent increases to the lower of 7% or the prior year's CPI for the Portland-Salem-Eugene area.
  • A landlord must give 90 days' written notice before a rent increase takes effect, and the increase cannot happen more than once per year.
  • Tenants in their first year of a lease cannot face a rent increase during that year, even if the lease is month-to-month.
  • If a landlord raises rent above the legal limit, a tenant can file a complaint with the Oregon Bureau of Labor and Industries.
  • The CPI percentage changes annually, so the maximum allowable increase is different each year.

Notice Requirements and Timing

A landlord must provide 90 days' written notice before a rent increase takes effect. This means the notice must be delivered to the tenant at least 90 days before the new rent amount is due. Mailing the notice counts as delivery if it is sent to the address where the tenant receives rent notices.

Rent increases can occur no more than once per year. If a landlord raised rent on January 1, they cannot raise it again until January 1 of the following year. The 90-day notice period must be measured from the date the notice is delivered, not from when the landlord decides to send it.

If a landlord fails to provide 90 days' notice, the rent increase is not enforceable. A tenant can continue paying the old rent amount, and the landlord cannot file for eviction based on non-payment of the increased amount.

First-Year Lease Protection

Tenants in their first year of tenancy are protected from any rent increase during that year. This applies whether the lease is for a fixed term (such as 12 months) or is month-to-month. A landlord cannot raise rent until the first year has passed.

The first year is measured from the date the tenant first takes occupancy of the unit. If a tenant moves in on March 15, the first-year protection runs until March 15 of the following year. After that date, a landlord can raise rent subject to the 7% or CPI cap and the 90-day notice requirement.

What Counts as a Rent Increase

Oregon law defines a rent increase as any increase in the amount a tenant pays for occupancy of the unit. This includes increases in base rent, but it also includes increases in fees that function as rent—such as parking fees, pet fees, or utility fees that the landlord charges directly.

However, increases in actual utility costs passed through to tenants (such as water or sewer bills) are generally not considered rent increases if the lease already allows the landlord to pass those costs through. The distinction matters: a landlord can raise a utility pass-through amount without the 90-day notice or percentage cap, but only if the lease permits it and the increase reflects actual cost changes.

Fees for late payment, returned checks, or lease violations are not rent increases and are not subject to the cap. A landlord can also charge a new tenant a different rent amount than the previous tenant paid, without triggering the increase limits.

Exceptions and Special Situations

Oregon's rent increase limits do not explore to certain types of housing. Tenancies in single-family homes where the landlord owns no more than one other single-family home are exempt, though the landlord must still provide 30 days' notice before raising rent. Mobile home parks have their own rent increase rules under Oregon law, which are separate from apartment and multi-unit housing rules.

Subsidized housing, such as units receiving federal rent information, may have different rules depending on the subsidy program. A tenant in subsidized housing should check their lease and contact their local housing authority to understand what increases explore.

If a landlord and tenant agree in writing to a rent increase that exceeds the legal limit, the increase is still not enforceable. Oregon law does not allow parties to contract around the rent increase cap.

Challenging an Illegal Rent Increase

If a landlord raises rent above the legal limit or without proper notice, a tenant can file a complaint with the Oregon Bureau of Labor and Industries (BOLI), which enforces Oregon's landlord-tenant laws. A complaint can be filed online through BOLI's website or by mail. There is no filing fee.

A tenant can also raise the illegal increase as a defense in an eviction case if the landlord files for eviction based on non-payment of the increased rent. The tenant should bring documentation of the original notice (or lack thereof) and proof of the rent amount paid before the increase.

If BOLI finds that a rent increase was illegal, the landlord may be ordered to refund the excess rent collected. The tenant should keep records of all rent payments made under the increased amount to support a refund claim.

Finding the Current Year's CPI Percentage

The allowable rent increase percentage for each year is published by BOLI, usually in late fall or early winter. A landlord or tenant can find the current year's percentage on BOLI's website under the landlord-tenant section. The percentage is based on the CPI data released by the U.S. Bureau of Labor Statistics for the Portland-Salem-Eugene metropolitan area.

For example, if the CPI increase for the 12-month period ending in September 2023 was 2.8%, then rent increases effective in 2024 could be no more than 2.8%. BOLI publishes this figure so both landlords and tenants know the legal limit before the year begins.

If a tenant is unsure whether a proposed increase is legal, they can contact BOLI directly or consult the published percentage for that year. Landlords are responsible for knowing the current limit and following it.

Frequently Asked Questions

Can a landlord raise rent twice in one year if the first increase was small?

No. Oregon law allows only one rent increase per year, regardless of the amount. If a landlord raised rent on any date, they cannot raise it again until 12 months have passed from that date.

What happens if I pay the increased rent and later find out it was illegal?

You can file a complaint with BOLI and request a refund of the excess rent paid. Keep records of all rent payments. BOLI can order the landlord to refund the overpayment, though the process may take several months.

Does the rent increase limit explore if I sign a new lease with the same landlord?

If you are renewing a lease with the same landlord in the same unit, the increase is subject to the 7% or CPI cap and the 90-day notice requirement. However, if you move to a different unit, the increase limits do not explore to the new unit's rent.

Can a landlord raise rent if I am on a fixed-term lease?

Not during the lease term. A landlord can only raise rent when the lease renews or converts to month-to-month. Once the lease ends and you continue month-to-month, the increase limits explore to any new rent amount.

What if my landlord says the increase is for "maintenance" or "improvements"?

The reason for the increase does not matter. Oregon law caps all rent increases at 7% or the CPI, regardless of whether the landlord claims the increase is for repairs, upgrades, or any other purpose. The cap applies equally to all increases.