How Much Can You Raise Rent in Oregon in 2026? (Complete Landlord Guide)

If you own a rental in Bend, Redmond, Sisters, or anywhere else in Oregon, there’s one number you need to know before sending a rent increase notice this year: 9.5%.

That’s the maximum allowable rent increase for 2026 under Oregon’s statewide rent stabilization law — down from 10% in 2025, and the second-lowest cap since the law took effect in 2019.

But the percentage is only half the story. Oregon’s rent increase rules also dictate when you can raise rent, how you must notify your tenant, and what happens if you get it wrong (spoiler: it’s expensive). Here’s everything Central Oregon landlords need to know.

The 2026 Oregon Rent Increase Cap: 9.5%

Every year by September 30, the Oregon Department of Administrative Services (DAS) calculates the maximum rent increase for the following calendar year — you can see the official figure on the Oregon DAS rent stabilization page. The formula, set by state law, is the lesser of:

• 7% plus the Consumer Price Index (CPI), or
• 10% (the hard cap)

For 2026, CPI came in at 2.5%, so the math works out to 7% + 2.5% = 9.5%.

For context, here’s how the cap has moved in recent years:

After inflation pushed the 2023 cap to nearly 15%, the legislature added the 10% hard cap in 2023 (SB 611). With inflation cooling, 2026 is the first year in a while that the formula — not the hard cap — sets the limit.

One important new wrinkle for 2026: House Bill 3054, passed in 2025, created a separate, lower cap of 6% for manufactured home parks and floating home marinas with more than 30 spaces. If you own standard residential rentals — single-family homes, duplexes, apartments — the 9.5% figure is the one that applies to you.

Who Is Exempt From Oregon’s Rent Cap?

Oregon’s rent cap does not apply to every rental. There are two main exemptions:

1. New construction (the 15-year rule). If the first certificate of occupancy for the dwelling unit was issued less than 15 years before the date of your rent increase notice, the cap doesn’t apply. For 2026, that generally means homes built in roughly 2011 or later may be exempt — but the clock runs from the certificate of occupancy date to the notice date, so check the specific dates before assuming you qualify.

2. Regulated affordable housing. Units regulated or certified as affordable housing by a federal, state, or local government are exempt in certain situations — for example, when the increase doesn’t raise the tenant’s portion of the rent.

If you’re relying on an exemption to raise rent above 9.5%, your rent increase notice must state the facts supporting the exemption. An exempt increase with a defective notice is still a violation.

Oregon Rent Increase Notice Requirements (The Rules That Trip Landlords Up)

The cap gets the headlines, but most compliance mistakes we see involve timing and notice. Under ORS 90.323, for any tenancy other than week-to-week:

• No increases during the first year of tenancy. Period. It doesn’t matter if the lease converts to month-to-month — rent is locked for the first 12 months.
• Only one increase per 12-month period. You can’t do two “small” increases that together stay under 9.5%.
• 90 days’ written notice, minimum. The notice must be in writing and delivered at least 90 days before the increase takes effect. Week-to-week tenancies require 7 days’ notice.
• The notice must specify the amount of the increase, the new rent amount, the effective date — and the facts supporting any exemption if you’re going above the cap.

There’s also a lesser-known anti-churn rule: if you terminate a tenancy without cause during the first year using a 30-day notice, you cannot charge the next tenant more than the maximum you could have charged the tenant you just removed. You can’t reset to market rent by cycling tenants.

What Happens If You Exceed the Rent Cap in Oregon?

This is where Oregon has real teeth. A landlord who raises rent in violation of the cap or the notice rules is liable to the tenant for three months’ rent plus actual damages.

On a $2,400/month Bend rental, that’s a minimum $7,200 penalty — before actual damages and before you factor in the relationship damage with your tenant. And enforcement is not theoretical: in 2026, Oregon reached a multi-million-dollar settlement with a property management company over improper rent increases. The state is paying attention.

Should You Actually Raise Rent 9.5%?

Here’s the part most articles skip: the legal maximum is not a pricing strategy.

Just because you can raise rent 9.5% doesn’t mean the Central Oregon market will bear it. If your tenant is paying $2,200 and comparable homes in their neighborhood are renting for $2,250, a 9.5% increase to $2,409 prices you above market — and invites a vacancy.

Run the turnover math before you send the notice. As we covered in our guide to the true cost of tenant turnover, a move-out typically costs an owner:

• 2–6 weeks of vacancy (in Bend, often $1,200–$3,000+ in lost rent)
• Turnover costs — cleaning, paint, touch-ups, re-keying
• Leasing costs — marketing, showings, screening

A modest 3–5% increase that keeps a great tenant in place will usually outperform a maximum increase that pushes them out. The right number depends on your property’s position relative to market — which means you need current, local comp data, not a statewide statistic.

This is also one of the areas where professional management earns its fee. If you’re weighing whether to handle rent increases yourself, our comparison of property management vs. self-management breaks down where the compliance risk sits, and our guide to property management costs in Bend covers what that service actually costs.

How Legacy PM Handles Rent Increases for Owners

For every property we manage across Bend, Redmond, Sisters, and Black Butte, we review rents annually against live market data — new listings, absorption, seasonal timing — and recommend an increase (or a hold) that balances revenue with retention. Then we handle the compliant notice, the timing, and the tenant communication.

Not sure where your rental sits against the market? Request a free rent analysis and we’ll show you exactly what your property should rent for in today’s Central Oregon market — and whether a 2026 increase makes sense for you.

Oregon Rent Increase FAQ (2026)

Can a landlord raise rent more than 9.5% in Oregon in 2026?

Only if an exemption applies. The two main exemptions are units whose first certificate of occupancy was issued less than 15 years before the rent increase notice, and certain regulated affordable housing. For all other tenancies, 9.5% is the ceiling for 2026, and the increase notice must state the facts supporting any exemption used.

How much notice does a landlord have to give to raise rent in Oregon?

At least 90 days’ written notice before the increase takes effect, for any tenancy other than week-to-week. Week-to-week tenancies require 7 days’ written notice. The notice must state the amount of the increase, the new rent, and the effective date.

Can rent be raised during the first year of tenancy in Oregon?

No. Oregon law prohibits any rent increase during the first year of a tenancy, and after that, rent can only be raised once in any 12-month period.

Is there rent control in Bend, Oregon?

Bend has no separate local rent control ordinance, but Oregon’s statewide rent stabilization law applies to all rentals in Bend, Redmond, Sisters, and the rest of Central Oregon. For 2026, that means a 9.5% maximum increase for buildings 15 years or older.

What is the penalty for raising rent illegally in Oregon?

A landlord who violates the rent cap or notice requirements is liable to the tenant for three months’ rent plus actual damages. On a typical Bend rental, that starts around $7,000 or more.

When will the 2027 Oregon rent increase limit be announced?

The Oregon Department of Administrative Services must publish the maximum allowable rent increase for 2027 by September 30, 2026.

This article is for general information and isn’t legal advice. For questions about your specific situation, consult an Oregon landlord-tenant attorney.

Quick Reference: Oregon Rent Increases in 2026

• Maximum increase: 9.5% (buildings 15+ years old)
• Manufactured home parks / marinas over 30 spaces: 6%
• Notice required: 90 days, in writing
• Frequency: once per 12 months, never in the first year of tenancy
• Penalty for violations: 3 months’ rent + actual damages
• 2027 cap will be published by September 30, 2026