Oregon Rent Increase Laws

Oregon does have rent control laws limiting the amount that landlords request for rent. Furthermore, state law prohibits local governments [1] from establishing additional rent control laws. Read More

When Can a Landlord Raise Rent in Oregon?

• Don’t break any rent control laws
• Wait until the end of the lease term (unless otherwise specified in the lease)
• Aren’t raising rent for discriminatory or retaliatory reasons
• Give reasonable notice

30 days before the end of a year-long lease, a landlord sends the tenant a notice that rent will increase by 14% if they choose to renew the lease.

When Can’t a Landlord Raise Rent in Oregon?

Landlords in Oregon may not raise the rent if:

• The increase is higher than what’s allowed under rent control laws
• The increase is applied in a way that discriminates against one of the protected classes specified in the Fair Housing Act .
• It is done in response to a protected tenant action, such as testifying in court against the landlord. This is known as “ retaliation. “ [2] The law does not specify a period between the tenant’s action and the rent increase qualifies as retaliation, so landlords should act in good faith when increasing rent. [3]
• It is during the middle of a lease’s fixed term (unless stated otherwise in the lease agreement) or within the first year of a tenancy.

How Often Can Rent Be Increased in Oregon?

Landlords in Oregon can increase the rent as often as they wish, as long as sufficient notice is provided each time and rent is not increased during the first year of a tenancy (except for week-to-week tenants). However, the total rent increase in 12 months cannot exceed the permitted rent increase limit.

How Much Notice is Needed to Raise Rent in Oregon?

In Oregon, landlords cannot raise the rent during the first year of the tenancy (except for week-to-week tenants) or during a lease term. They must also give notice to raise the rent as follows:

• Year-long leases – 90 days’ notice [4]
• Week-to-week – 7 days’ notice [5]

The rent increase notice must be delivered by hand-delivery or first-class mail [6] and state: [7]

• The amount of the rent increase
• The amount of the new rent
• Reason the rental unit is exempt if the increase exceeds the limit
• The date the increase becomes effective

Rent increase notices cannot be sent by certified or registered mail. [8]

How Much Can a Landlord Raise Rent in Oregon?

In Oregon, landlords cannot raise the rent above 7% plus the consumer price index (CPI) per year. [9] Currently, the maximum rent increase for 2024 is 10.0%. [11]

The rent increase limit does not apply if:

• The tenancy is week-to-week
• The certificate of occupancy was issued less than 15 years before the date of the notice of the rent increase
• The rental unit is subsidized by the government or a local program

When a lease term ends and new tenants move in, the maximum rent increase does not apply unless both of the following conditions exist:

• The previous lease term was shorter than one year
• The previous lease was terminated without a tenant-based cause (e.g. illegal activity or failure to pay rent)

Special Considerations

In Portland, landlords must provide relocation assistance if the rent is increased above 10% within any 12 months and the tenant decides to move. [10] The amount of assistance depends on the size of the rental unit:

• $2,900 – Studio or a single bedroom in a larger unit
• $3,300 – 1-bedroom unit
• $4,200 – 2-bedroom unit
• $4,500 – 3-bedroom unit or larger

Sources

…a city or county shall not enact any ordinance or resolution which controls the rent that may be charged for the rental of any dwelling unit.

…a landlord may not retaliate by increasing rent…

Every duty under this chapter and every act which must be performed…imposes an obligation of good faith in its performance or enforcement.

…the landlord may not increase the rent…during the first year…at any time after the first year of the tenancy without giving the tenant written notice at least 90 days prior to the effective date of the rent increase.

If a tenancy is a week-to-week tenancy, the landlord may not increase the rent without giving the tenant written notice at least seven days prior to the effective date of the rent increase.

…written notice shall be executed by…personal delivery…first class mail…

The written notice…must specify…amount of the rent increase…new rent…facts supporting the exemption…the date on which the increase becomes effective.

“First class mail” does not include certified or registered mail, or any other form of mail that may delay or hinder actual delivery of mail to the recipient.

…the landlord may not increase the rent…in an amount greater than seven percent plus the consumer price index above the existing rent.

If…Tenant receives an Increase Notice indicating a Rent increase of 10 percent or more within a rolling 12-month period…the Landlord shall pay to the Tenant Relocation Assistance…

By Sept. 30 of each year, the Oregon Office of Economic Analysis is responsible for calculating and publishing the maximum annual rent increase percentage allowed by law for the following calendar year. This amount is 7% plus the Consumer Price Index for All Urban Consumers, West Region (All Items), as most recently published by the Bureau of Labor Statistics, or 10%, whichever is lower. For more information please see Oregon Revised Statutes Chapter 90, including 90.323, 90.324, and 90.600 specifically regarding rent stabilization.

The allowable annual rent increase in 2024 is 10.0%. Only one rent increase may be issued in any 12-month period.

The allowable rent increase percentage for the previous year, 2023, was 14.6% if the increase was issued before July 6th, or 10.0% if issued after July 6.