Oregon’s Statewide Rent Control: What Tenants and Landlords Need to Know

Oregon made national headlines when it became the first state to adopt a statewide rent control and tenant protection law. The legislation, commonly known as SB 608, limits how much most landlords can raise rent each year and changes when and how tenants can be evicted.

This article explains how the law works in practice, who is covered, what the caps on rent increases look like, and how the rules around evictions changed. The goal is to give both tenants and housing providers a clear, practical guide to the current framework.

1. Background: Why Oregon Adopted a Rent Cap

For years, Oregon renters experienced sharp rent increases, especially in fast-growing metro areas. State lawmakers responded with a policy that combined rent stabilization with stronger eviction protections instead of traditional, unit-by-unit rent freezes.

Key motivations included:

• Reducing sudden, large rent spikes that could displace long-term tenants.
• Providing predictability so tenants can budget and plan.
• Balancing tenant stability with incentives for new housing construction by exempting newer buildings.

Unlike local rent control ordinances in some cities, Oregon’s framework applies statewide, creating one consistent set of rules for most residential tenancies.

2. The Core Rule: Oregon’s Cap on Annual Rent Increases

The centerpiece of Oregon’s law is a limit on how much rent can increase each year for covered units. For most existing rental housing older than a certain age, a landlord may not raise rent more than a specified percentage within any 12‑month period.

2.1 General rent cap formula

For covered units, state law limits annual rent increases to a maximum set by statute and adjusted annually by the state, based on inflation. Historically, the framework has been described as a percentage tied to inflation measured by the Consumer Price Index (CPI), with an overall ceiling.

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The Oregon Department of Administrative Services (DAS) calculates the maximum allowable rent increase percentage each year and publishes it no later than September 30 for the following calendar year.

For example:

• For many tenancies subject to the cap, the 2026 statewide maximum rent increase is 9.5%.
• For certain manufactured dwelling and marina tenancies in larger facilities, a separate lower limit of 6% applies for 2026.

The exact limit changes year to year with inflation and statutory adjustments, so landlords must check the official DAS announcement before issuing rent increases.

2.2 When the rent cap applies

The rent increase cap generally applies when:

• The rental unit has been certified for occupancy for 15 years or more.
• The tenancy has passed the first year of occupancy.
• The unit is not excluded as regulated affordable housing under specific programs.

For covered tenancies after the first year, landlords may not raise rent within a 12‑month period by more than the maximum annual percentage published by the state, and may not increase rent more than once in that period.

3. Units and Situations Exempt from the Rent Cap

Not every rental in Oregon is subject to the rent increase limit. The law intentionally carves out exceptions to avoid discouraging new construction and to coordinate with existing affordable housing programs.

3.1 Newer construction (less than 15 years old)

A landlord is not subject to the rent cap if the unit’s first certificate of occupancy was issued less than 15 years before the notice of rent increase.

This rolling 15‑year exemption means:

• New buildings are exempt for their first 15 years, encouraging developers to build more rental housing.
• Once a property crosses the 15‑year threshold, the rent cap begins to apply.

3.2 Subsidized affordable housing

Some units are regulated through separate federal, state, or local affordable housing programs. If the unit is governed or certified as affordable housing and a rent change either does not increase the tenant’s portion or is required due to program rules or income changes, the statutory rent cap does not apply.

In these cases, affordability rules are enforced through the housing program itself, rather than through general rent control requirements.

3.3 Week-to-week tenancies

Week‑to‑week tenants in Oregon are not subject to the same cap in the same way. State law permits rent increases for week‑to‑week tenancies with at least seven days’ written notice, and the statutory percentage limitation does not apply to that category.

4. Notice Rules and Timing for Rent Increases

Oregon’s rent control system is tightly connected to notice rules. Even when an increase is within the legal percentage, it can be invalid if the landlord fails to give proper notice or raises rent too often.

4.1 No increases in the first year

For most tenancies other than week‑to‑week, landlords may not increase rent during the first year after the tenancy begins. This 12‑month freeze is designed to give new tenants a period of stability before any increase.

4.2 Notice for rent increases after the first year

After the first year of tenancy (for month‑to‑month and other non–week‑to‑week arrangements):

• Rent may not be increased without at least 90 days’ written notice before the effective date of the increase.
• Rent may not be increased more than once in any 12‑month period for the same tenancy.

A valid rent increase notice must include:

• The amount of the rent increase.
• The new rent amount.
• The effective date of the increase.
• If the landlord claims an exemption from the cap (such as a building under 15 years old), facts supporting that exemption must be stated.

4.3 Special rules for manufactured dwelling and marina spaces

Manufactured dwelling parks and marinas have additional specific rules and percentages laid out in statute. For certain facilities with more than 30 spaces, the 2026 limit is 6%, while for others the limit aligns with the general rent cap (capped at 10% and tied to the CPI).

5. Eviction Protections: From “No-Cause” to “For-Cause” After One Year

SB 608 did more than cap rent hikes; it also changed when landlords can terminate tenancies. The law significantly restricts the use of no-cause evictions after a tenant has lived in a unit for at least one year.

5.1 The first year of tenancy

During roughly the first 12 months of a month‑to‑month tenancy, landlords still have flexibility to terminate for no cause, as long as they provide proper written notice under Oregon’s Residential Landlord and Tenant Act. However, they may not increase rent in that first year for most tenancies.

5.2 After one year: “for-cause” and “qualifying landlord reason” only

Once a tenant has occupied the unit for at least one year, the landlord generally may terminate the tenancy only for:

• For-cause grounds — such as nonpayment of rent or other substantial lease violations.
• Specific landlord-based reasons — for example, the landlord or an immediate family member moving into the unit, plans to demolish or substantially remodel, or removal of the unit from the rental market.

For-cause evictions typically allow the tenant an opportunity to cure some violations within a specified period, depending on the nature of the breach and the statute. Failure to pay rent remains one of the most common lawful grounds.

5.3 Notice and relocation payments for “no-fault” terminations

When a landlord ends a tenancy for one of the allowed no-fault reasons (such as moving family into the unit or doing major renovations), they must provide a longer notice period and, in some cases, pay relocation assistance. Under SB 608, statewide rules typically require:

• At least 90 days’ written notice for most “no-fault” terminations after one year.
• Payment of relocation assistance (often equivalent to one month’s rent) in certain circumstances, particularly when tenants are displaced for the landlord’s own use or major changes to the property.

Local ordinances, particularly in cities such as Portland, may add stricter requirements or higher relocation payments, so tenants and landlords must also check city-level rules in addition to state law.

6. Penalties for Violating Rent Control or Eviction Rules

The statewide system carries meaningful consequences if landlords fail to follow the law. Overcharging rent or using an unlawful eviction can expose a landlord to significant financial liability.

Under Oregon’s statutory framework and SB 608:

• Landlords who unlawfully raise rent above the allowed cap or fail to give proper notice may be required to refund overcharges and pay additional damages.
• For certain violations, a landlord can be liable for up to three months’ rent in statutory damages, plus actual damages and reasonable attorney fees.

These remedies are intended to deter noncompliance and ensure that tenants can realistically enforce their rights.

7. Practical Effects for Tenants and Landlords

Oregon’s rent control law reshapes the rental landscape by creating predictability for tenants while preserving some flexibility for owners. The impact varies depending on which side of the lease you are on.

7.1 What tenants gain

• Predictable rent increases: Tenants in covered units know that rent cannot jump dramatically from one year to the next, as increases are bound by a published cap.
• Protection from sudden displacement: After one year, tenants become harder to remove without a legally recognized cause or qualifying landlord reason.
• Time to plan: Ninety-day notice periods give tenants several months to budget or decide whether to move when rent goes up.

7.2 What landlords must adjust to

• Annual planning: Property owners must track the yearly maximum allowable rent increase and incorporate it into budgets and long-term plans.
• Documentation and compliance: Proper notices, accurate calculations, and record‑keeping are essential to avoid disputes and penalties.
• Eviction strategy: Landlords must rely more on for‑cause grounds or clearly defined landlord reasons when ending tenancies after one year, which can require stronger documentation of violations or plans.

7.3 Comparison snapshot

8. Frequently Asked Questions (FAQs)

8.1 Does Oregon still allow no-cause evictions?

Yes, but only in a limited window. For most month‑to‑month tenancies, a landlord can issue a no‑cause termination during the first year of the tenancy, subject to state notice requirements. After one year, they generally must have a for‑cause reason or a qualifying landlord reason allowed by statute.

8.2 How do I find out the maximum rent increase for this year?

The Oregon Department of Administrative Services publishes the maximum allowable rent increase percentage each year by September 30 for the following calendar year. The calculation uses data from the Consumer Price Index and applies statutory caps (such as a 10% ceiling for certain tenancies).

8.3 Can a landlord raise rent more than the cap if a tenant moves out?

For covered units, Oregon’s statutes limit rent increases within a tenancy, and SB 608 also restricts how much a landlord can reset rent for certain units after terminating a tenancy for cause within the first year. However, some distinctions remain between increases within an existing tenancy and the rent set for a brand‑new tenant, and landlords must closely follow updated statutory language to ensure compliance.

8.4 What if my building is less than 15 years old?

If the first certificate of occupancy for your unit was issued fewer than 15 years before the rent increase notice, your unit may be exempt from the rent cap. The landlord must state the exemption in the rent increase notice. Other protections, such as notice periods and some eviction rules, can still apply even if the percentage cap does not.

8.5 Do local cities like Portland have different rules?

Yes, some cities layer additional protections on top of state law. Portland, for example, has its own relocation assistance policies and may impose stricter local requirements related to terminations and rent increases. Tenants and landlords in such cities must follow both statewide rules and any local ordinances that offer greater protection.

8.6 What should a tenant do if they think a rent increase is illegal?

Tenants can start by checking:

• Whether their unit is older than 15 years or otherwise exempt.
• Whether the increase exceeds the annual percentage limit published by the state.
• Whether they received at least 90 days’ written notice after the first year of tenancy.

If the increase appears unlawful, tenants may contact a local legal aid office, tenant advocacy organization, or a private attorney to review their rights. Oregon law provides for damages and attorney fees in some cases where landlords violate the rent control statute.

9. Key Takeaways

• Oregon is the first state to adopt a statewide rent control and eviction protection law, enacted as SB 608.
• Most covered units older than 15 years are subject to an annual rent increase cap, which is recalculated each year and announced by the state; for 2026 the limit for many tenancies is 9.5%.
• Landlords cannot raise rent during the first year of most tenancies and must give at least 90 days’ written notice for increases after that.
• After one year, tenants are generally protected from no‑cause evictions, and landlords must rely on for‑cause or specific landlord reasons with extended notice and, in some cases, relocation assistance.
• Violations can result in substantial penalties, including up to three months’ rent in damages plus additional costs, making compliance essential for landlords and a powerful tool for tenants.

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Author

medha deb

 

Medha Deb is an editor with a master's degree in Applied Linguistics from the University of Hyderabad. She believes that her qualification has helped her develop a deep understanding of language and its application in various contexts.

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