Oregon's statewide rent control law under SB 608 limits annual rent increases across most of the state's rental housing. Oregon made history in February 2019 as the first state in the country to enact this kind of statewide rent control framework. Senate Bill 608 took effect immediately upon signing and created a framework that limits annual rent increases across most of Oregon's rental housing stock, prohibits rent increases entirely during a tenant's first year of occupancy, and ties just cause eviction protections directly to the rent control framework so that landlords cannot circumvent the cap through no-cause termination.

The mechanics of SB 608 are more nuanced than the headline "7% plus CPI" suggests. The formula changes every year based on inflation data the state publishes each September. A hard 10% ceiling, added in 2023, caps the increase regardless of how high inflation runs. And a 2025 amendment, House Bill 3054, introduced separate and lower caps for certain property types that did not exist when SB 608 was first enacted. Property managers operating in Oregon need to understand the formula mechanics, not memorize a single percentage, because the applicable number changes annually and the state has already revised the underlying rules once since the law was passed.

Oregon Senate Bill 608, codified at ORS § 90.323, caps annual residential rent increases at the lesser of 7% plus the Consumer Price Index for the West Region or 10%. The cap applies to residential properties 15 years or older. No rent increase is permitted during the first year of any tenancy. The Oregon Department of Administrative Services publishes the applicable maximum percentage each September for the following calendar year. For 2026, the published maximum is 9.5%. House Bill 3054, enacted in 2025, created separate and lower caps for manufactured dwelling parks and floating home marinas with more than 30 spaces. Violations expose landlords to liability for three months' rent plus actual damages.

Oregon SB 608 at a Glance

Here is what this guide covers:

1. How the 7% plus CPI formula actually works

2. The hard cap and why it was added

3. Which properties are covered

4. Which properties are exempt

5. The first-year prohibition on rent increases

6. Notice requirements and timing

7. The 2025 amendment: House Bill 3054

8. Just cause eviction and its connection to the rent cap

9. Penalties for non-compliance

10. What property managers must have in place

How the 7% Plus CPI Formula Actually Works

The formula under ORS § 90.323 is not a flat percentage. It is the lesser of two numbers: 7% plus the Consumer Price Index for All Urban Consumers in the West Region, or 10%. Every year, the Oregon Department of Administrative Services calculates the applicable CPI figure and publishes the resulting maximum allowable percentage for the following calendar year, typically in late September.

This means the actual number a landlord may use changes annually and cannot be assumed from a prior year's figure. In 2025, the published maximum was 10.0%, meaning CPI plus 7% exceeded 10% that year and the hard cap controlled. For 2026, the Oregon DAS calculated CPI for the West Region at 2.5%, which combined with the 7% base produces 9.5%, a figure below the 10% ceiling. For 2026, the formula component controls rather than the hard cap.

A landlord planning a rent increase must verify the currently published rate for the calendar year in which the increase will take effect. The Oregon DAS Rent Stabilization page publishes the official annual rate along with the methodology and underlying CPI calculation. Property managers should never apply a rate carried over from a prior year without confirming the current published figure.

The Hard Cap and Why It Was Added

When SB 608 first took effect, the formula was simply 7% plus CPI with no ceiling. For the first several years, this produced increases in the 9% to 10% range. In 2022, driven by historic post-pandemic inflation, the formula produced an allowable increase of 14.6% for 2023, a figure that alarmed both tenant advocates and many lawmakers who had supported the original bill.

In response, the Oregon Legislature amended the law in 2023 to add a hard 10% ceiling. Under the amended formula, the maximum allowable increase is the lesser of 7% plus CPI or 10%, regardless of how high inflation runs in a given year. This change means that even in years of significant inflation, Oregon landlords cannot exceed a 10% annual increase under the standard SB 608 framework.

The hard cap is a permanent structural feature of the law going forward, not a temporary inflation-era fix. Property managers should plan around a maximum possible increase of 10% in any given year, even though the actual published rate in most years will be below that ceiling based on the formula calculation.

Which Properties Are Covered

SB 608 applies to residential rental properties that are 15 years of age or older. The 15-year threshold is measured from the date of the certificate of occupancy. A property that received its first certificate of occupancy in 2012 became covered by the rent cap in 2027, fifteen years later.

This age-based threshold is structurally different from how most other rent control frameworks define coverage. New Jersey's municipal ordinances, for example, generally use a fixed historical date or a rolling exemption period defined at the time the ordinance was enacted. Oregon's framework is a continuously rolling threshold: every year, a new cohort of properties built exactly 15 years earlier becomes covered for the first time. Property managers acquiring or developing properties in Oregon need to track when each property in their portfolio will cross the 15-year threshold, not just whether it has already crossed it.

The coverage applies broadly to most residential rental property types, including single-family homes, apartments, and condominiums offered for residential rent, subject to the exemptions discussed below.

Which Properties Are Exempt

Several categories of property fall outside SB 608's rent cap entirely.

New construction. Properties less than 15 years old are exempt. This exemption is the primary incentive structure built into the law to avoid discouraging new housing development. A landlord of a newly constructed building may set initial and subsequent rents without restriction until the property reaches the 15-year threshold.

Government-subsidized housing. Properties receiving federal housing subsidies, including Section 8 vouchers and Low Income Housing Tax Credit properties, are not subject to SB 608's formula. These properties operate under separate federally regulated rent increase frameworks, typically capping annual increases at smaller fixed percentages set by HUD.

Landlord-occupied units. Properties where the landlord shares the same dwelling unit with the tenant are exempt from the cap.

First tenancy after a vacancy. SB 608 does not restrict the rent a landlord may charge a new tenant when a unit turns over. The cap applies to increases during an ongoing tenancy, not to the initial rent set for a new tenant. However, a related provision under SB 608 prohibits a landlord who terminates a month-to-month tenancy from charging the next tenant more than 7% above the previous tenant's rent, which limits the practical use of vacancy as a workaround to the cap.

Major renovations. Some sources indicate landlords who have completed substantial capital improvements may have grounds for increases above the standard cap, though this exemption requires careful documentation and is narrower than a blanket exclusion. Property managers relying on a renovation-based exception should consult Oregon legal counsel to confirm the specific documentation standard required.

The First-Year Prohibition on Rent Increases

One of the most operationally significant and most commonly violated provisions of SB 608 is the absolute prohibition on rent increases during the first year of any tenancy. A landlord may not raise rent at any point during the first 12 months of occupancy, regardless of market conditions, regardless of operating cost changes, and regardless of whether the lease structure would otherwise permit a mid-term adjustment.

This provision frequently catches property managers who manage portfolios in multiple states with different first-year rules. Some states allow rent increases tied to lease renewal regardless of tenancy length. Oregon does not. The first-year prohibition is calculated from the start of occupancy, not from the calendar year or the lease anniversary in the conventional sense, and applies even if the tenant signs a new lease term during that period.

Property managers should build a hard stop into their rent review workflow that prevents any increase notice from being generated for a tenancy that has not yet reached its first occupancy anniversary. A rent increase notice sent in month 10 of a tenancy, even if the effective date would fall after the 12-month mark, raises compliance questions that are better avoided entirely by building the anniversary date into the notice scheduling system.

Notice Requirements and Timing

SB 608 establishes tiered notice requirements based on the size of the increase. For rent increases up to 10%, landlords must provide at least 90 days' written notice before the increase takes effect. For increases exceeding 10%, which would only occur where an exemption applies since the standard cap does not permit increases above 10%, landlords must provide at least 180 days' notice.

The notice must clearly state the new rent amount, the dollar or percentage increase, and the effective date of the increase. A notice that omits any of these required elements does not satisfy the statutory notice requirement, and tenants may refuse to pay the increased amount until a compliant notice is provided.

SB 608 also limits the frequency of increases to once per 12-month period. A landlord cannot split what would otherwise be a single larger increase into two smaller increases within the same 12-month period to work around the cap. The frequency limitation applies regardless of tenancy type or the size of any individual increase.

RIOO's leasing management tools support the tenancy anniversary tracking, rent increase notice generation, and compliance documentation that Oregon's first-year prohibition and notice timing requirements demand across a residential portfolio.

The 2025 Amendment: House Bill 3054

In 2025, the Oregon Legislature passed House Bill 3054, which made the most significant structural change to the rent cap framework since the 2023 addition of the hard ceiling. The new law created separate and lower rent increase caps specifically for manufactured dwelling parks and floating home marinas with more than 30 spaces. For 2026, facilities meeting that threshold are capped at a maximum 6% increase, materially lower than the 9.5% cap that applies to standard residential rental housing.

The rollout of HB 3054 produced a notable implementation issue. When the Oregon Department of Administrative Services first published the 2026 rates in September 2025, it initially reported the standard cap incorrectly before issuing a correction reflecting the new bifurcated structure under HB 3054. This incident illustrates the operational risk of relying on outdated or incorrectly summarized rate information: even the state agency responsible for publishing the figures issued a correction after initial publication.

Property managers should always verify the current published rate directly from the Oregon DAS Rent Stabilization page rather than relying on secondary sources, news coverage, or prior-year figures, particularly given the demonstrated history of mid-cycle corrections to published rates.

Separately, Senate Bill 722, introduced in the 2025 session, would reduce the new construction exemption period from 15 years to 7 years if enacted, which would extend rent stabilization coverage to a significant number of additional units. As of this writing, SB 722 has not been enacted. Property managers should monitor its status but should not make compliance decisions based on proposed legislation that has not yet passed.

Just Cause Eviction and Its Connection to the Rent Cap

SB 608 paired the rent cap with just cause eviction protections specifically because a rent cap without eviction protections is easily circumvented: a landlord facing an unwanted tenant could simply terminate the tenancy without cause and re-rent at market rate to a new tenant.

Under SB 608, after a tenant has occupied a unit for one year, a landlord may not terminate a month-to-month tenancy without a legally recognized qualifying reason. Qualifying reasons include sale of the property, the landlord or a qualifying family member moving into the unit, major renovation requiring the unit to be vacant, and demolition of the structure. A landlord who terminates a tenancy for a qualifying reason but fails to meet the specific statutory requirements for that reason, including providing relocation assistance where required, is liable to the tenant and the tenant has a defense to any subsequent eviction action.

For property managers, this means the rent cap and the just cause framework must be evaluated together. A landlord who is frustrated by the rent cap's limitations cannot simply terminate a long-term tenant to reset rent at market rate without a qualifying reason and full compliance with the associated notice and relocation requirements.

For a comparison of how just cause eviction frameworks operate in other rent-regulated markets, see RIOO guide to Washington's just cause eviction law.

Penalties for Non-Compliance

Landlords who increase rent in violation of SB 608's cap are liable to the tenant for three months' rent plus the tenant's actual damages. This is a significant financial exposure that applies regardless of the landlord's intent or good faith belief about the applicable rate.

Landlords who terminate a tenancy claiming a qualifying reason but fail to meet the statutory requirements for that termination face the same three-months'-rent-plus-damages liability, and the tenant gains an affirmative defense to the eviction action itself. This dual exposure, financial liability plus a defense that can defeat the underlying eviction, makes procedural compliance on terminations as operationally critical as compliance on the rent cap itself.

Tenants must commence any action asserting a violation within one year after they knew or reasonably should have known of the violation. This limitations period means that a compliance failure does not disappear simply because a tenant did not immediately raise it, and property managers should treat documentation of every rent increase and termination as a record that may need to be defended up to a year after the fact.

What Property Managers Must Have in Place

A construction date record for every property, with the 15-year threshold tracked forward. Coverage under SB 608 is a rolling determination. A property that is currently exempt as new construction will become covered exactly 15 years after its certificate of occupancy date. Property managers should maintain a forward-looking schedule of when each currently-exempt property will cross into coverage.

An annual rate verification process, performed every September. The applicable maximum percentage changes every calendar year and is published by the Oregon DAS in September for the following year. A rent increase workflow that relies on the prior year's figure, or on a figure obtained from a secondary source without verification against the official DAS publication, risks applying an outdated or incorrect rate.

A tenancy anniversary tracking system that blocks first-year increase notices. No rent increase notice should be generated for any tenancy that has not completed its first 12 months of occupancy. This should be a hard rule in the rent review workflow, not a manual check that depends on staff remembering individual tenancy start dates.

A notice generation process tied to the size of the increase. Increases up to 10% require 90 days' notice. Increases above 10%, where an exemption applies, require 180 days' notice. The notice must include the new rent amount, the increase amount, and the effective date.

A qualifying-reason documentation process for any no-cause termination after the first year. Terminations of tenancies over one year old require a documented qualifying reason that meets the specific statutory standard for that reason, including any required relocation assistance. This documentation should be prepared and retained before the termination notice is served, not assembled after a dispute arises.

Key Takeaways for Property Managers

• Oregon Senate Bill 608, codified at ORS § 90.323, caps annual rent increases at the lesser of 7% plus CPI for the West Region or 10%. The applicable rate is published annually by the Oregon Department of Administrative Services each September. The published maximum for 2026 is 9.5%, down from 10.0% in 2025

• Coverage applies to residential properties 15 years of age or older, measured on a rolling basis from the certificate of occupancy date. Properties under 15 years old, government-subsidized housing, and landlord-occupied units are exempt

• No rent increase is permitted at any point during the first 12 months of any tenancy. This prohibition is absolute and is one of the most commonly violated provisions of the law

• Rent increase notices require 90 days for increases up to 10% and 180 days for increases above 10%. Increases are limited to once per 12-month period regardless of tenancy type

• House Bill 3054, enacted in 2025, created a separate and lower rent cap for manufactured dwelling parks and floating home marinas with more than 30 spaces, set at 6% for 2026

• After a tenant has occupied a unit for one year, just cause is required to terminate a month-to-month tenancy. Qualifying reasons include sale, owner move-in, major renovation, and demolition, each with specific procedural and relocation assistance requirements

• Violations of the rent cap or improper terminations expose landlords to liability for three months' rent plus actual damages. Tenants have one year from discovery of a violation to bring a claim

Oregon's Rate Changes Every Year. The Compliance Process Should Not.

The single most important operational fact about SB 608 is that the number changes annually. A property manager who memorizes "9.5%" as the Oregon rent cap will be operating with an incorrect figure the moment the calendar turns to the next year. The formula, the 15-year coverage threshold, the first-year prohibition, and the notice tiers are the durable elements of the law. The specific percentage is not.

Property managers who build their Oregon compliance process around verifying the current published rate every September, tracking construction dates forward toward the 15-year coverage threshold, blocking first-year increase notices systematically, and documenting qualifying reasons for any post-first-year termination are operating with a compliance framework that survives the law's annual rate changes and periodic legislative amendments. Those who rely on a single memorized percentage or a static understanding of the framework from when SB 608 was first enacted in 2019 are operating on assumptions that the Oregon Legislature has already revised twice since then.

FAQ

1. What is the current maximum rent increase allowed in Oregon?
The Oregon Department of Administrative Services publishes the maximum allowable rent increase percentage each September for the following calendar year. The figure changes annually based on the formula of 7% plus CPI for the West Region, capped at a hard 10% ceiling. The published maximum for 2026 is 9.5%. Property managers should verify the current rate directly from the Oregon DAS Rent Stabilization page rather than relying on a prior year's figure.

2. Does Oregon's rent cap apply to all rental properties?
No. SB 608 applies to residential properties 15 years of age or older, measured from the certificate of occupancy date. Properties less than 15 years old, government-subsidized housing, and properties where the landlord shares the unit with the tenant are exempt.

3. Can a landlord raise rent during the first year of a tenancy in Oregon?
No. SB 608 prohibits any rent increase during the first 12 months of occupancy, regardless of the reason or the lease structure. This is an absolute prohibition with no exceptions for market conditions or operating cost changes.

4. How much notice is required for a rent increase in Oregon?
At least 90 days' written notice is required for increases up to 10%. At least 180 days' notice is required for increases exceeding 10%, which would only occur where a specific exemption applies. Notice must include the new rent amount, the increase amount, and the effective date.

5. What happened with the 2026 Oregon rent cap rate?
The Oregon Department of Administrative Services initially published an incorrect figure for 2026 before issuing a correction reflecting House Bill 3054, which created separate lower caps for manufactured dwelling parks and floating home marinas with more than 30 spaces. The corrected standard rate for 2026 is 9.5%; the corrected rate for larger manufactured dwelling and marina facilities is 6%.

6. What happens if an Oregon landlord violates the SB 608 rent cap?
The landlord is liable to the tenant for three months' rent plus the tenant's actual damages. Tenants have one year from when they knew or reasonably should have known of the violation to bring a claim.

7. Does Oregon require just cause to evict a tenant?
After a tenant has occupied a unit for one year, yes. A landlord may not terminate a month-to-month tenancy without a legally recognized qualifying reason, including sale of the property, owner or family move-in, major renovation, or demolition, each subject to specific notice and relocation assistance requirements.

The information in this article reflects Oregon's statewide rent control law under SB 608 and ORS § 90.323, as amended through House Bill 3054 (2025), and as of 2026. The applicable annual rate changes each calendar year and is published by the Oregon Department of Administrative Services each September. Property managers should verify the current rate and requirements directly at the Oregon DAS Rent Stabilization page and consult qualified Oregon legal counsel before making compliance decisions for any specific property or situation.