Oregon’s maximum rent increase for 2027 is 10%.
Before you implement a 10% increase with your next lease renewal, or any increase of any kind, you need to follow 2 additional requirements;
Follow required notice of increase requirements.
Confirm the rent has not been increased in the last 12 months.
If your rental property is in Portland, Oregon, you need to take into account the Portland Relocation Ordinance. Increases above the allowable amount can trigger landlord obligations to the tenant.
Key Takeaways
Make sure your lease renewal offer keeps any rent increases at or below the maximum allowable amount.
Oregon’s rent cap for 2027 is 10%.
Portland landlords should check local laws or could trigger the Portland relocation ordinance which obligates landlords to pay their tenants thousands of dollars.
Rent cannot be raised during the first 12 months of a tenancy (applies even to month-to-month agreements).
How Is The Rent Cap Calculated?
Oregon’s rent cap is a maximum limit of 10%, or 7% plus CPI, whichever is less.
Every September The Oregon Department of Administrative Services publishes the new Consumer Price Index (CPI). On September 28, 2026 the department indicated that the CPI was 3%.
City Specific Factors to Consider
While the state limit is 10%, both the City of Portland and the City of Eugene have relocation ordinances that trigger when increases are 10% or more.
For example, on $2,000.00 rent, a 10% increase is $200.00 which triggers relocation, but a 9.9% increase is $198.00 and doesn’t.
The city of Portland requires landlords to pay tenants who receive an increase of 10% or more between $2,900.00 and $4,500.00 if they choose to move-out because of the increase. The actual payment due is based on the total number of bedrooms.
Below is a table that outlines the number of bedrooms and the total amount a landlord will be required to pay.
| Number of Bedrooms | Amount of Payment Required |
|---|---|
| Studio or Single Room Occupancy (SRO) | $2,900.00 |
| 1-Bedroom | $3,300.00 |
| 2-Bedroom | $4,200.00 |
| 3-Bedroom or Larger | $4,500.00 |
The city of Eugene doesn’t calculate relocation based on the number of bedrooms. Instead they calculate the total amount based on the rent. Eugene landlords must pay 2x the rent (minus any applicable state relocation payment).
| Eugene Relocation Multiple | A $2,000.00/mo. Rental Payou |
|---|---|
| 2X | $4,000.00 |
Landlords Exempt from the State Rent Limit
Regulated affordable housing may be exempt from the state cap.
Properties whose certificate of occupancy was issued less than 15 years ago are also exempt.
Notice Requirements You Must Follow
Rent increases for renewal offers and for month-to-month tenancies require 90 days notice. The notice must specify;
The amount of the increase
The amount of the new rent
If any landlord exceptions apply
The date the rent increase will be effective.
Limits on the Frequency of Rent Increases
Oregon law prohibits landlords from increasing the rent more than once in any 12 month period. This means if your last increase was within the last 12 months, you must wait before you can issue another increase.
Penalties for Violating the Law
Failure to comply with the state law can result in significant penalties. The statutory penalty is 3 months rent plus actual damages.
3 months rent is already substantial, but you don’t want to overlook actual damages. If a tenant moved and incurred a variety of expenses because of your unlawful increase, they could seek to recover all expenses incurred such as moving costs (labor, materials, truck rental, etc) and more.
Frequently Asked Questions
Here are answers to questions owners ask about the 2027 rent cap.
How much should I increase my rent?
Rent is ultimately set by the market. You can ask for whatever increase you want (within the bounds of the law), but if the market doesn’t support that increase, your tenant may move.
If a tenant moves you have turnover costs so you want to ensure you properly evaluate the market before sending your renewal offer.
Do I need to give 90 days notice to increase the rent on a month to month tenancy?
Yes, in Oregon, even month-to-month tenancies require 90 days notice before a rent increase can be effective.
What is the maximum rent increase allowed in Portland, Oregon that won’t trigger relocation?
An increase of 10% or more within 12 months triggers the Portland Relocation Ordinance. Even landlords who are exempt from the state's maximum rent limit can still be responsible for paying relocation if the increase is 10% or more.
Why are some landlords and developers exempt from the maximum rent limit?
Landlords who are already renting their property below market need a way to keep pace with inflation. If the rent is too low over time, the landlord may not be able to properly care for the property.
Developing real estate costs money, is high risk, and has a variety of stakeholders involved. With new construction, a lot is riding on the developer’s ability to stabilize the building rents. Depending on the state of the economy and housing inventory, this could happen quickly or take much longer than expected. By allowing new properties to be exempt, it increases the number of developers who wish to build and lenders who wish to lend.
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More Resources
Oregon Department of Administrative Services
Portland Housing Bureau - Rental Services (Portland Relocation)
Sleep Sound Property Management, Inc. is located in Portland, Oregon and manages homes, plexes, and apartments in the Portland metro and Vancouver, Washington area.
