The Oregon Rent Cap, for Investors: What the 9.5% Actually Means
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
More money gets lost to bad information about Oregon's rent cap than to almost any other rule in the state. Here is what the law actually says, dated to 2026, and what it does and does not do to a rental deal.
How much can a landlord raise rent in Oregon in 2026?
9.5% for calendar 2026. Oregon's Department of Administrative Services sets the number every year using a formula in ORS 90.324: the lesser of 10%, or 7% plus the prior year's CPI-U for the West Region. For 2026 the CPI piece landed around 2.5%, so 7% plus 2.5% produced 9.5%, under the 10% ceiling. The figure resets every year, so confirm the current year's number before serving any increase notice. One separate rule matters for a specific asset class: manufactured-home parks and floating-home marinas with more than 30 spaces carry their own lower cap of 6%, while parks with 30 or fewer spaces follow the standard 9.5%.
Cap figures as announced for calendar 2026; Oregon recalculates every year, so verify the current number with the Department of Administrative Services before relying on it.
Can I reset the rent to market when a tenant moves out?
Yes, and this is the correction that matters most. Oregon's cap is a vacancy decontrol system: it limits increases only for a continuing, sitting tenant. When a unit turns over and a new tenancy begins, the landlord may set the first rent at any market rate, with no cap between tenancies. So the widely-repeated idea that an Oregon rental's rent "can never go up more than 9.5%" is simply wrong. It can reset fully at turnover. The cap governs the pace of increases inside a tenancy, not the ceiling on what the property can earn over time. That distinction changes value-add math, and it is the piece most out-of-state investors miss.
Is my new-construction rental exempt from Oregon's rent cap?
Yes, and generously. A unit is exempt from the statewide cap entirely if its first certificate of occupancy was issued less than 15 years before the rent-increase notice. That is a rolling 15-year window measured from the certificate date, not from your purchase date, so a 2014 build is aging toward the end of its window while a 2020 build stays exempt into the mid-2030s. For an investor, newer product can be priced to market every year with no cap at all, which is a real reason to weigh building age in acquisition. Keep the certificate date in your file, and confirm the exemption's application with an Oregon attorney before you rely on it.
Does Portland have stricter rent rules than the rest of Oregon?
In effect, yes. On top of the statewide 9.5% cap, the City of Portland's Renter Relocation Assistance ordinance requires a landlord to pay mandatory relocation assistance ($2,900 for a studio, $3,300 for a one-bedroom, $4,200 for a two-bedroom, on the current schedule) whenever a rent increase of 10% or more in any rolling 12-month period causes a tenant to move, or on a no-cause termination. For a covered unit already under Oregon's 9.5% 2026 cap, an ordinary annual increase usually will not reach Portland's 10% relocation trigger. The Portland rule still bites in other scenarios: exempt units (new construction under 15 years), no-cause terminations, and any notice that crosses the city's 10% threshold. The dollar amounts adjust periodically, so treat these as of 2026 and confirm the current schedule before serving notice. This is a Portland-specific overlay; the rest of Oregon lives under the state cap alone.
How does Oregon's rent cap compare to Washington's?
They rhyme but they are not the same number, and conflating them causes real errors for investors working both sides of the Columbia. Both use a 7%-plus-CPI formula under a 10% hard cap, but they run on different CPI regions and different months. Oregon's 2026 cap is 9.5% (built on a West-Region CPI measured in September); Washington's 9.683% for 2026 uses a Seattle-area June CPI. Never quote one number for "the Pacific Northwest." If your portfolio spans Portland and Vancouver, each rental follows its own state's clock. The Washington side is covered on our sister site; here, the Oregon number governs.
Can I evict a tenant to renovate or sell my Oregon rental?
After the first 12 months of tenancy, only for a qualifying reason. SB 608 established for-cause protections statewide: past the first year, a landlord needs a qualifying for-cause reason under SB 608 to end a tenancy, which includes nonpayment or a lease violation, and also landlord-based grounds like a landlord or family member moving in, a sale to a buyer who will occupy the home, or qualifying repairs or demolition. Landlord-based terminations generally require written notice and, in some cases, a relocation payment. This matters most when you plan an exit or a major renovation, so build the notice timeline into your hold plan. Your Oregon attorney confirms which ground fits your situation.
What the cap does (and doesn't) do to your loan
It does nothing to how a DSCR loan qualifies. Qualification uses the rent that exists today, the in-place lease or the appraiser's Form 1007 market figure, never projected rent growth. What the cap constrains is your multi-year pro forma. A value-add plan that assumed aggressive mid-tenancy increases needs a timeline built to the capped trajectory, with turnover resets doing the catching up. We flag this in deal reviews because no other lender page connects the statute to the loan math.
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Frequently asked questions
How much can a landlord raise rent in Oregon in 2026?
9.5% for calendar 2026, set by the Department of Administrative Services as the lesser of 10% or 7% plus West-Region CPI (about 2.5% this cycle). It applies only to a sitting tenant and resets every year. Manufactured-home parks and floating-home marinas over 30 spaces carry a separate lower 6% cap. Confirm the current year's figure before serving notice.
Can I reset the rent to market rate when a tenant moves out in Oregon?
Yes. Oregon uses vacancy decontrol: the cap limits increases for a continuing tenant, but the rent on a new tenancy can be set at any market rate with no cap between tenancies. The claim that an Oregon rental can never rise more than 9.5% is wrong; it can reset fully at turnover. The cap governs the pace inside a tenancy, not the property's long-run ceiling.
Is my new-construction rental exempt from Oregon's rent cap?
Yes, if the unit's first certificate of occupancy was issued less than 15 years before the rent-increase notice. It is a rolling 15-year window measured from the certificate date, not your purchase date, so newer product can be priced to market every year with no cap. Keep the certificate date in your file and confirm the exemption with an Oregon attorney.
Does Portland have stricter rent rules than the rest of Oregon?
In effect, yes. Portland's Renter Relocation Assistance ordinance requires mandatory relocation assistance ($2,900 studio, $3,300 one-bedroom, $4,200 two-bedroom on the 2026 schedule) when a rent increase of 10% or more displaces a tenant. For a unit already under the 9.5% state cap, an ordinary annual increase usually will not reach Portland's 10% trigger; it still matters for exempt (new-construction) units, no-cause terminations, and any notice crossing 10%. The rest of Oregon lives under the state cap alone.
How does Oregon's rent cap compare to Washington's?
Both use a 7%-plus-CPI formula capped at 10%, but on different CPI regions and months: Oregon's 2026 cap is 9.5% (West-Region CPI), Washington's is 9.683% (Seattle-area CPI). Never quote a single Pacific Northwest number. A portfolio spanning Portland and Vancouver has each rental following its own state's clock.
Can I evict a tenant to renovate or sell my Oregon rental?
After the first 12 months, only for a qualifying for-cause reason under SB 608: owner or family move-in, a sale to a buyer who will occupy, qualifying repairs or demolition, or a tenant-caused ground like nonpayment. Landlord-based terminations require written notice and sometimes a relocation payment. Build the timeline into any exit or renovation plan, and confirm the ground with an Oregon attorney.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. Oregon's rent-cap figure, city and county STR rules, and tax figures change; verify current requirements with the city or county, your CPA, or an Oregon real estate attorney before you buy. Loans are subject to buyer and property qualification.