California Rent Increase Rules for Landlords

Under California's Tenant Protection Act (AB 1482, Civil Code section 1947.12), most landlords may raise an existing tenant's rent by no more than 5% plus the regional inflation rate, or 10%, whichever is lower, in any 12-month period. For increases taking effect from August 1, 2026 through July 31, 2027, that works out to 8.7% in Los Angeles and Orange counties and 8.8% in the core Bay Area. You must give at least 30 days' written notice, or 90 days if the increase tops 10%. Some units are exempt, and units under a stricter city ordinance such as San Francisco's or Oakland's follow the local limit instead.

How much can you raise the rent in 2026?

The cap is measured against the lowest rent you charged for the unit at any time in the 12 months before the increase takes effect. Discounts, concessions, or credits the tenant accepted are left out when you find that lowest rent, and the lease must list the gross monthly rent and any discount separately. You may raise the rent in no more than two steps in 12 months, and the steps together must stay under the cap.

The inflation figure is the April-to-April change in the Consumer Price Index for All Urban Consumers (CPI-U) for your metro area, published by the U.S. Bureau of Labor Statistics. Increases that take effect on or after August 1 use the April figure from that year. Increases before August 1 use the prior year's figure.

San Diego County and Riverside and San Bernardino counties have their own federal indexes, but those are published every other month with no April figure. In that case the statute uses the March-to-March change, so check the March 2026 release for those areas before you calculate.

Worked example in Los Angeles: the lowest rent in the past 12 months was $2,400. The cap is 8.7%, so $2,400 x 0.087 = $208.80, and the highest new rent is $2,608.80. If you already raised the rent by $100 earlier in that 12-month window, the remaining room is $108.80.

When a unit turns over and no prior tenant stays in lawful possession, the state annual cap does not limit the new tenant's starting rent, but applicable emergency price-gouging restrictions still limit what you may advertise, offer, or charge. The cap applies to increases after that.

Which units are exempt from the state cap?

The cap does not apply to:

• Newer buildings: housing issued a certificate of occupancy within the previous 15 years. This is a rolling window, so a building that received its certificate in 2012 becomes covered in 2027.
• Single-family homes and condos you can sell separately, but only if the owner is not a corporation, a real estate investment trust (REIT), or an LLC with at least one corporate member, and only if the tenants received the written exemption notice described below.
• Owner-occupied duplexes: two units in one structure where the owner lived in one unit as a principal residence when the tenancy began and still lives there, as long as neither unit is an accessory dwelling unit (ADU) or junior ADU.
• Deed-restricted or subsidized affordable housing for very low, low, or moderate income households.
• Units already under local rent control that limits increases to less than the state cap.
• Dormitories run by a college or K-12 school.

The exemption notice for single-family homes and condos

The single-family and condo exemption is not automatic. The tenant must receive a written notice that begins: "This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code." The full required statement goes on to say the property meets the exemption and that the owner is not a REIT, a corporation, or an LLC with a corporate member. Copy it word for word from the statute.

For a tenancy that began or renewed on or after July 1, 2020, the notice must be in the lease itself. If the notice is missing, the unit is covered by the cap even though it would otherwise qualify.

How much notice does a rent increase need?

For a month-to-month tenancy, Civil Code section 827 sets the notice period:

• 30 days if the increase, alone or combined with other increases in the prior 12 months, is 10% or less of the rent charged during that period.
• 90 days if the increase, alone or combined, is more than 10%. On a capped unit this cannot happen legally, so the 90-day rule mainly affects exempt units.

Deliver the notice in person or by mail. If you mail it from California to an address in California, add five calendar days to the notice period. If you mail it from another U.S. state to a California address, add ten calendar days. The notice should state the new rent and the date it takes effect.

During a fixed-term lease, the rent in the lease controls until the term ends unless the lease itself allows a change. Plan the increase to start at renewal and send the notice early enough to meet the 30- or 90-day period before that date.

What happens if you charge more than the cap?

A tenant can sue for any rent paid above the legal maximum, plus a court order stopping the overcharge and, at the court's discretion, attorney's fees. If you acted willfully or with fraud, oppression, or malice, damages can reach three times the overcharge. The state Attorney General and the local city attorney or county counsel can also enforce the cap. Tenants have three years to file, and a lease clause waiving these rights is void.

Separately, Penal Code section 396 makes it unlawful to raise rent by more than 10% during a declared state or local emergency, for 30 days after the declaration and for as long as officials extend it. The main exceptions are increases agreed to before the declaration and increases tied to repairs or additions beyond normal maintenance. If your property is in an area under an emergency order, check whether the order is still in effect before raising rent.

When does a city rent control law apply instead?

Where a city rent control ordinance covers your unit and limits increases to less than the state cap, the local rule replaces the state cap. Local ordinances usually cover only older buildings, so a newer building in the same city may fall under the state cap instead. Three examples:

• Los Angeles: the city's Rent Stabilization Ordinance generally covers units built on or before October 1, 1978. The Los Angeles Housing Department publishes the allowable annual percentage, so check its current figure before you send notice.
• San Francisco: the allowable annual increase for covered units is 1.6% from March 1, 2026 through February 28, 2027, based on 60% of Bay Area inflation. You may raise the rent only once every 12 months, and you need a rent increase license from the Rent Board, which requires reporting the unit in the Board's housing inventory first.
• Oakland: the annual increase for covered units is 2.3% from August 1, 2026 through July 31, 2027, based on 60% of inflation with a 3% ceiling. The unit must be registered with the Rent Adjustment Program. Include the city's RAP notice and a copy of a current Business Tax Certificate with every rent increase notice; for an increase based only on the current annual CPI allowance, a current signed payment plan with the city's Finance Department for delinquent business taxes may replace the certificate. Only one increase is allowed in 12 months. The first cannot take effect until at least 12 months after move-in. No increase can take effect until at least six months after the tenant first receives the RAP notice.

Other rent-controlled cities set their own formulas and coverage dates, so check the city's rent program before sending notice on a unit there.

If a tenant does not pay the new rent, eviction rules control what happens next. See California eviction rules for landlords for notice and just cause requirements, and California lease disclosures for where the exemption notice fits among other required lease terms. For setting the starting rent on a vacant unit, see how to determine the rent price, and for wording and timing a notice in any state, see how to increase the rent.