Oregon has set the maximum allowable rent increase for 2025 at 10%, continuing the cap already in place for 2024. This limit applies to most residential rental units across the state, particularly those over 15 years old. The Oregon Office of Economic Analysis calculated the limit, as required by law, based on 7% plus the annual change in the Consumer Price Index (CPI) for All Urban Consumers in the West Region. However, the law mandates that the increase cannot exceed 10%, ensuring protections for renters against significant rent hikes.
The 10% cap restricts landlords from raising rents more than once in a 12-month period, providing tenants with a sense of stability in an increasingly expensive housing market. This statewide rent cap is part of Senate Bill 611 (SB 611), which was signed into law by Governor Tina Kotek on July 6, 2023. The law applies to all rent increase notices delivered on or after that date and introduces new measures to protect tenants while balancing the needs of property owners.
For renters in Portland, there are additional protections in place. Any rent increase of 10% or more triggers Mandatory Rental Relocation Assistance, designed to help tenants cover the costs of moving if they can no longer afford their current rental. To qualify for this assistance, tenants must live within Portland city limits, not share a residence with their landlord, and have a lease that is not week-to-week. Other events that can trigger relocation assistance include no-cause evictions, the non-renewal of a fixed-term lease (when not converting to month-to-month), substantial changes to the terms of the lease, or a qualified landlord reason for terminating the lease.
When a rent increase of 10% or more is proposed, landlords must provide tenants with written notice at least 90 days in advance. This notice must outline the tenant’s rights and obligations, along with the amount of relocation assistance they are eligible to receive. Tenants have 45 days from receiving the notice to request this assistance.
The relocation assistance payments are determined by the size of the rental unit. For a studio or single room occupancy, tenants are eligible for $2,900. A one-bedroom unit qualifies for $3,300, while a two-bedroom unit receives $4,200. For units with three bedrooms or more, the payment is $4,500. These amounts are intended to offset the financial burden of finding new housing in response to steep rent hikes or other qualifying events.
In addition to limiting rent increases, SB 611 introduced new notification requirements for landlords. Notices related to rent increases or lease terminations must be delivered in writing, either in person or by first-class mail. Certified or registered mail is not permitted. Beginning January 1, 2024, notifications can also be sent electronically if the rental agreement allows for it. This change ensures clearer communication between landlords and tenants, reducing the likelihood of disputes over rent increases or lease changes.
The 10% cap on rent increases aims to provide much-needed relief to tenants facing rising housing costs. By tying the increase limit to inflation but capping it at 10%, the law helps tenants avoid extreme rent hikes while maintaining flexibility for landlords. For tenants in Portland, the added benefit of relocation assistance further protects those at risk of displacement.
Looking ahead, the Oregon Office of Economic Analysis will calculate and publish the allowable rent increase percentage for 2026 by September 30, 2025. As housing prices continue to rise, these limits serve as a critical measure to protect renters, helping ensure that housing remains accessible in an increasingly competitive market.
