Oregon Rent Increase Laws

Oregon made national news in 2019 when it passed Senate Bill 608, permanently changing how Oregon’s rental market operates. The law made Oregon the first in the nation to implement statewide rent control. SB 608 also reshaped how rent increases work and ended most “no‑cause” eviction practices. Landlords and tenants in Oregon should understand how this landmark law operates, as well as its major exemption categories.

This guide explains SB 608 in practical terms for Oregon landlords and tenants. We review the rights and obligations connected to raising rent, giving written notice, and ending tenancies. We’ll also walk through the 7% plus inflation formula used for rent caps and answer commonly asked questions.

If you’re facing challenges related to a rent increase or another aspect of tenancy, consider touching base with a lawyer. A landlord-tenant attorney licensed in Oregon can help you understand your options and available remedies. That way, you can decide how to proceed.

Let’s start with some basics.

Oregon’s Statewide Rent Cap

SB 608 created a statewide rent increase limit for most residential tenancies in the state (later amended by SB 611). The law doesn’t freeze rents; instead, it caps rent increases during any 12‑month period using a formula rather than a fixed number. Oregon lawmakers wanted a system that adjusts with the economy while still protecting tenants from extreme rent spikes. Accordingly, the formula ties the rent cap to inflation.

The Rent Cap Formula

Under Oregon law, the maximum annual rent increase for most residential rentals is the lesser of 10% (a statutory cap) or 7% plus the regional Consumer Price Index (CPI). The Oregon Department of Administrative Services (DAS) publishes the official CPI percentage that landlords must use when calculating the next year’s rent cap.

For the 2026 calendar year, DAS announced a regional CPI adjustment of 2.5%. This means the maximum rent increase allowed is 9.5% (7% + 2.5%). Landlords cannot exceed this limit unless the property qualifies for an exemption.

For the 2027 calendar year, DAS announced a maximum allowable rent increase of 10%. Landlords cannot exceed this limit in 2027 unless the property qualifies for an exemption.

The Rent Cap in Practice

Oregon’s rent cap applies to most residential tenancies. This includes fixed-term rental agreements and month-to-month tenancies.

In addition to placing a cap on rent increases, SB 608 includes related rules that:

• Prohibit a landlord or property manager from increasing rent during the first year of a tenancy
• Allow only one rent increase in any 12-month period, subject to the legal cap
• Require that landlords give 90‑day written notice before an increase takes effect (seven days for week-to-week tenancies)

The notice must clearly state the new rent total, the amount of the rent increase, and the effective date. If a landlord fails to give proper written notice, the increase is invalid.

Tenants who receive an unlawful increase may recover three months’ periodic rent plus actual damages in court. Actual damages typically include the extra money paid because of the illegal rent, plus any other financial losses the tenant suffered because of the violation.

Key Exemptions

Not all properties are covered by SB 608’s rent cap. Oregon created several important exemptions that every landlord and tenant must understand. These include:

• New construction: Units with a certificate of occupancy issued within the past 15 years are exempt, a rolling exemption that encourages new housing development
• Affordable housing exemption: Rentals regulated as affordable housing under federal, state, or local programs are exempt because they already follow separate rent rules
• Manufactured dwelling and floating homes: Spaces in manufactured home communities, like mobile home parks or floating home marinas, with more than 30 spaces are subject to a 6% annual cap under a separate state law; facilities with 30 or fewer spaces follow the general 10% or 7% + CPI cap

If a unit qualifies for an exemption, the landlord may raise rent without following the statewide cap. However, they must still follow Oregon’s 90-day written notice rule and any local requirements.

Rent Increase Rules and Notice Requirements

Understanding the rent cap is only part of the picture. SB 608 also creates statewide rules for how landlords must communicate rent changes.

Notice Requirements for Rent Increases

Landlords must give 90‑day written notice before any rent increase. The notice must include:

• The amount of the rent increase
• The amount of the new rent
• The date the increase becomes effective
• The facts supporting an exemption (if the property is exempt from the state cap)

If the unit is exempt from the rent cap, the notice must clearly state the exemption or basis for the higher increase, if required by law. For example, a landlord might explain that the unit received its certificate of occupancy within the past 15 years.

Restrictions on Frequency

Landlords may not issue more than one rent increase in any 12‑month period. Even small increases are still subject to the rule. This prevents landlords from issuing multiple small increases that add up to a large total.

Week‑To‑Week Tenancies

For week‑to‑week tenancy arrangements, the rules are different. Landlords must give at least seven days’ notice before raising rent. While the rent cap doesn’t apply, the notice requirement still does.

Ending Tenancies Under SB 608

SB 608 also changed Oregon’s rules for terminating tenancies. The requirements for ending a tenancy depend on whether it’s the first year of a lease agreement.

During the First Year

For the first year of a month‑to‑month tenancy, landlords may end the tenancy with a no‑cause notice. They must give at least 30 days’ written notice in most places. For example, the city of Portland requires 90 days. To end a fixed-term tenancy in the first year for no cause, landlords must furnish written notice at least 30 days (90 days in Portland) before the lease expires to stop it from automatically renewing.

After the First Year

SB 608 ended most “no‑cause” terminations after the first year of occupancy. Instead, landlords must rely on one of four “qualifying landlord reasons” to end a tenancy. These are:

• The landlord intends to demolish the unit or convert it to a non‑residential use
• The landlord plans to begin repairs or renovations that make the unit unsafe or uninhabitable
• The landlord or an immediate family member intends to move into the unit
• The landlord has sold the unit to a buyer who intends to occupy it

The qualifying reason(s) must be stated in written notice, and the landlord must give at least 90 days’ notice.

For any qualifying-landlord-reason termination, the landlord must pay the tenant one month’s rent in relocation assistance statewide unless an exemption applies. Municipalities may impose additional amounts.

A Note About Fixed‑Term Leases

At the end of a fixed-term lease of one year or longer, the tenancy automatically converts to a month-to-month agreement unless the landlord terminates it using a qualifying reason or documented lease violations. To stop this automatic conversion, the landlord must give the tenant written notice specifying the qualifying reason or violations at least 90 days before the lease expires.

If a fixed-term lease is shorter than one year, the landlord may decline renewal without cause at the end of that specific term, provided the tenant has not yet reached 12 months of continuous occupancy. After a tenant has resided in the unit for a total of 12 months (even across multiple short-term leases), the landlord can’t decline a renewal without a qualifying reason or documented lease violations.

Lease Violations

SB 608 didn’t change Oregon’s standard rules for terminating a lease during a tenancy when a tenant commits a violation. Landlords may still issue notices for active violations such as nonpayment of rent, serious damage, or dangerous behavior following Oregon’s existing timelines and cure requirements.

However, SB 608 did change how violations affect lease renewals. Specifically, it requires landlords to document at least three separate violations within a 12-month period to decline a renewal after the first year of occupancy.

Additional Rights and Obligations Under SB 608

SB 608 interacts with other parts of Oregon landlord‑tenant law. Understanding these connections can help parties avoid common pitfalls and potential disputes.

Security Deposits

SB 608 didn’t change Oregon’s security deposit rules, but rent increases can affect how landlords handle deposits. For example, if a landlord raises rent, they may not automatically raise the security deposit unless the rental agreement allows it and the increase complies with Oregon law.

Disclosures and Local Rules

Some cities, like Portland, require additional disclosures when landlords raise rent or end a tenancy. Portland also has relocation assistance rules that apply when rent increases exceed certain thresholds. SB 608 doesn’t override these local rules.

Affordable Housing Programs

Units regulated as affordable housing follow separate rent rules. Tenants in these programs should check their program documents, because the statewide rent cap doesn’t apply.

Actual Damages

If a landlord violates SB 608 by issuing an unlawful rent increase or ending a tenancy without a qualifying reason, the tenant may recover actual damages. Courts may also award additional penalties in some cases.

Get a Legal Consultation

Depending on the nature of the conflict you’re facing, it’s usually a good idea to speak with a lawyer licensed in Oregon and well-versed in its landlord-tenant laws. A trusted legal advocate can put things in perspective by helping you understand your options.

If you’re like most Oregonians, you don’t keep legal experts on standby. FindLaw’s directory of Oregon landlord-tenant attorneys can help you get started. Use the resource as a starting point. It compiles information like ratings, background, and which local advisors offer free consultations. Look for one with strong ratings and experience in cases similar to yours. Arrange a meeting so you can start fully exercising your rights and making informed decisions.