Oregon's 2026 Rent Increase Rules, Explained Without the Legalese

Every January, like clockwork, I get the phone call. An owner has already mailed a rent increase notice, they are feeling good about themselves, and then some corner of their brain whispers "wait, is this legal?" So they call me. And sometimes the answer is a yes. And sometimes I have to be the person who explains that the notice they just sent could cost them three months of rent.

Let's make sure you are never the second call. Here is exactly how rent increases work in Oregon in 2026, in plain English, with the traps flagged.

The number for 2026 is 9.5%

Oregon caps how much you can raise rent each year. For 2026, the maximum allowable increase on most rentals is 9.5%.

That number is not random and it is not permanent. The state sets it every year using a formula: 7% plus the regional inflation rate, capped at a hard ceiling of 10%. Inflation ran about 2.5% this cycle, so 7 plus 2.5 gets you 9.5. Last year the number was 10%. In 2021 it was 9.2%. It moves. Which is the first trap: do not assume this year's cap matches last year's. The state publishes the new figure every September for the following year. Check it before you send anything.

There is also a separate, lower cap for manufactured home parks and floating home marinas with more than 30 spaces. Those are limited to 6% in 2026 under a new law. If that is you, the 9.5% number does not apply and you need the 6% one.

The three rules that go with the number

The percentage is only part of it. Three more rules apply to almost every tenancy, and breaking any one of them is where owners get hurt.

You cannot raise rent in the first year. During the first 12 months of a tenancy, rent is frozen. Full stop. It does not matter what the market does. This applies even to brand-new construction that is otherwise exempt from the cap, which surprises people.

You can only raise rent once every 12 months. No stacking two smaller increases in the same year to sneak past the cap. One increase, once per rolling 12-month period, per tenancy.

You must give 90 days' written notice. At least 90 days before the new rent takes effect, in writing, and the notice has to spell out the current rent, the new rent, the increase amount, and the date it starts. If you send the notice by mail only, build in extra days for mailing. Ninety days is not a suggestion. It is the difference between a valid increase and a void one.

The exemption most owners do not know they qualify for

Here is the good news I promised you last week.

If your rental's certificate of occupancy was issued less than 15 years ago, your property is exempt from the percentage cap entirely. Newer buildings can raise rent based on market conditions, not the 9.5% limit.

If you built or bought a home that was completed in, say, 2013 or later, you likely have far more room than your neighbor with the 1995 ranch. You are not stuck at 9.5%. You can move to market.

Two important catches, because there are always catches. First, this exemption is a rolling window tied to the age of the building, so a property ages into the cap once it crosses 15 years. The home that was exempt a few years ago may not be exempt now. Second, and this is the one people miss: the exemption gets you out of the percentage cap, but it does not get you out of the other three rules. You still cannot raise rent in year one. You still get one increase per 12 months. You still owe 90 days' written notice. And when you use the exemption, your notice has to state the reason the cap does not apply.

I bring this up because "my building is exempt" sometimes turns into "so I can do whatever I want," and that is not the case. The exemption is a bigger number, not a free-for-all.

What I recommend to owners

Just because you can raise rent 9.5% does not mean you should.

A good tenant who pays on time, takes care of your property, and does not call you at 9pm about things that are not emergencies is worth real money. Turnover is expensive. Between vacancy, cleaning, marketing, and re-leasing, losing a solid tenant to a maximum increase they resented almost never pencils out.

I generally steer owners toward a modest increase, often in the 3% to 5% range or no increase at all, for tenants they want to keep. You stay compliant, you keep pace with rising costs, and you keep the person who has been quietly protecting your investment for three years. Save the aggressive increases for turnover, when you are re-pricing to market anyway.

The math from my last two posts still applies here. Six weeks of vacancy on that $2,600 house costs $3,600. If maxing out the increase pushes a great tenant to leave, the increase cost you money.

The bottom line

Know your number, 9.5% for most properties. Never raise rent in the first year. Never more than once in 12 months. Always give 90 days' written notice in writing with all the required details. Check whether your building is under 15 years old and therefore exempt from the cap, and remember the exemption does not excuse the other rules. And get the paperwork right, because the penalty for getting it wrong is three months' rent.

None of this is complicated once you know it. We are happy to answer any questions you have as a homeowner. Reach out anytime!

Not sure if your rent increase is compliant, or whether your property qualifies for the exemption? This is exactly what we handle for owners every day, correctly and on time. Request a free management proposal or call us at (541) 388-1382.

This post is general information, not legal advice. For your specific situation, confirm the current figures with the Oregon Department of Administrative Services or a landlord-tenant attorney.