Oregon made national headlines in 2019 as the first state to pass statewide rent control, and Senate Bill 608 still shapes nearly every rent increase and lease termination decision Portland landlords make today.
The law has been updated since it first passed, most notably through SB 611 in 2023, and Portland layers its own additional requirements on top of the state rules, which means a lot of owners are working from an outdated or incomplete picture of what's actually required right now.
Key Takeaways
Oregon's rent increase cap for 2026 is 9.5%, calculated as 7% plus the regional Consumer Price Index, with a hard ceiling of 10%.
The rent cap only applies to properties 15 years or older, and that exemption window rolls forward every year.
Just cause is required to end a tenancy after 12 months of occupancy, regardless of whether the property is otherwise exempt from the rent cap.
Portland adds its own relocation assistance requirement on top of state law for larger rent increases and no-cause terminations.
Violating the rent cap or eviction rules can expose a landlord to damages of up to three times the tenant's actual losses, plus attorney's fees.
The Rent Increase Cap Under SB 608
Oregon's statewide rent stabilization law, ORS 90.323, caps most annual rent increases at 7% plus the regional Consumer Price Index, never exceeding 10% total. The Oregon Department of Administrative Services calculates and publishes this figure by September 30 each year for the following calendar year.
For 2026, that cap is 9.5%, reflecting a 2.5% CPI adjustment on top of the 7% base rate. Landlords can only raise rent once in any 12-month period, and no rent increase is permitted at all during a tenant's first year of occupancy. Manufactured home parks operate under a separate, lower cap of 3% plus CPI, up to a maximum of 7%.
Notice requirements scale with the size of the increase. Increases below 10% require 90 days of written notice, while increases of 10% or more require 180 days. Week-to-week tenancies are exempt from the percentage cap but still require 7 days' notice for any increase.
The 15-Year Exemption Rolls Forward Every Year
The rent cap only applies to residential properties that are 15 years or older, but this isn't a fixed cutoff date. It's a rolling threshold that moves forward every year. In 2026, that generally means properties built before roughly 2011 are covered by the cap, while anything built more recently is exempt from the rent increase limit.
A property that was exempt two or three years ago may have aged into coverage by now, so it's worth checking a property's exact age annually rather than assuming last year's exemption status still holds. Keeping this documented is exactly the kind of detail we build into how we manage properties for owners across the Portland area.
Just Cause Eviction Requirements After 12 Months
Separate from the rent cap, Oregon law under ORS 90.427 requires just cause to end a tenancy once a tenant has occupied a unit for 12 months or longer, and this requirement applies regardless of whether the property is exempt from the rent cap based on its age. Landlords need a legally recognized reason to terminate a tenancy at this point, and no-cause terminations for long-term tenants generally require relocation assistance.
This is one of the most common areas of confusion we see, since a newer property being exempt from the rent cap doesn't mean it's exempt from just cause requirements once a tenant has been in place for a year.
Portland's Additional Layer: Relocation Assistance Requirements
Portland adds its own requirements on top of Oregon's statewide law through the city's Renter Additional Protections ordinance. Within Portland city limits, landlords issuing a rent increase of 10% or more, or terminating certain tenancies without cause, are generally required to pay relocation assistance to the affected tenant, with typical amounts running from roughly $2,900 to $4,500 depending on unit size.
This creates what amounts to a lower practical ceiling for many Portland landlords, since even an increase that technically complies with the statewide cap can trigger a relocation assistance obligation under the city's rules. Owners managing properties inside Portland city limits need to check both the state cap and the city's additional requirements before finalizing a rent increase or a lease termination.
Our eviction process is built to account for both layers so terminations are handled correctly the first time.
Penalties for Non-Compliance
Oregon doesn't treat a violation of the rent cap or just cause requirements as a minor paperwork issue. A landlord found to have illegally raised rent or evicted a tenant without proper cause can be liable for up to three months' rent plus twice the tenant's actual damages, and a tenant can sue to recover three times an illegally charged rent increase.
Courts can also award attorney's fees and costs to a tenant who prevails in this kind of case. Given how specific the notice timelines and exemption rules are, a documented, consistent process protects an owner far more than good intentions alone, especially since a single missed detail can undo an otherwise valid rent increase or termination.
Reviewing your current lease templates and rent increase procedures through our owner resources page is a good place to start if you're not certain your properties are fully compliant.
FAQ
What's the maximum rent increase allowed in Oregon for 2026?
9.5%, calculated as 7% plus the region's Consumer Price Index, with a statutory ceiling of 10% regardless of how high CPI runs.
Are newly built properties exempt from all of Oregon's rental protections?
Only from the rent increase cap. Properties less than 15 years old are exempt from the percentage cap, but just cause eviction requirements still apply once a tenant has lived there 12 months or longer.
Does Portland have additional rules beyond the statewide rent cap?
Yes. Portland requires relocation assistance for rent increases of 10% or more and certain no-cause terminations, which can apply even to increases that comply with the state cap.
What happens if I raise rent above the legal cap?
You can be liable for up to three months' rent plus twice the tenant's actual damages, and the tenant may recover attorney's fees and costs if the case goes to court.
Staying Compliant as Oregon's Rules Keep Evolving
Oregon's rent control framework has changed since it first passed in 2019, and Portland's added relocation assistance rules mean local landlords are dealing with more layers than most of the state. Confirming your properties' exemption status, applying the correct notice period, and understanding when Portland's additional requirements kick in protects you from penalties that cost far more than the compliance review itself.
If you'd like help reviewing your Portland rental properties for SB 608 and city-level compliance, reach out to our team today.
