Rent Control in Oregon
Statewide cap: 7%+CPI, max 10%
Statewide cap: 7%+CPI, max 10%
Oregon's rent control rules are some of the most restrictive in the United States. They apply statewide. This guide focuses on the practical implications for landlords with 1-20 units. Understanding these rules is critical to avoiding costly mistakes and potential legal action. Oregon's approach to rent control is distinct, particularly its statewide application of just-cause eviction requirements and annual rent increase caps. Most states either don't have rent control or limit it to specific municipalities. Not Oregon. Here, the rules apply everywhere.
The primary statute governing landlord-tenant relations and rent control is ORS § 90 (Residential Landlord and Tenant). This statute outlines everything from lease agreements to eviction procedures and, crucially, rent increase limitations. Landlords need to be familiar with its provisions. The Oregon State Legislature is the key regulator, enacting changes to ORS § 90. Enforcement often falls to local courts when disputes arise, but the rules themselves are set at the state level.
The practical bottom line for a small landlord in Oregon is straightforward: you cannot raise rent arbitrarily, and you cannot evict without a specific, legally defined reason after the first year of tenancy. This differs significantly from states where "no-cause" evictions are permissible with sufficient notice. In Oregon, after the initial 12 months, every eviction must be for "just cause."
Oregon imposes a strict cap on annual rent increases. This cap is tied to the Consumer Price Index (CPI). For 2024, the maximum allowable rent increase is 9.9%. This means if a tenant's rent is $1,500, the maximum you can raise it to is $1,648.50 ($1,500 * 1.099). You cannot increase rent more than once in any 12-month period. You must also provide a minimum of 90 days' written notice for any rent increase. Don't send a 30-day notice for a rent increase. Do send a 90-day notice.
There are limited exceptions. Properties that received a certificate of occupancy less than 15 years ago are exempt from rent control. This is a key detail for newer constructions. However, even for these properties, other tenant protections still apply, such as just-cause eviction requirements.
This is where Oregon truly stands apart. After the first year of occupancy, a landlord cannot issue a "no-cause" notice to vacate. Evictions must be for "just cause." This means you need a specific, legally recognized reason. Examples of just cause include:
A common landlord mistake is attempting to evict a long-term tenant for "no cause" because they want to raise the rent beyond the cap or simply want new tenants. This is illegal in Oregon after the first year. If you want a tenant out, you must have a just cause. If you claim a just cause like "landlord intends to occupy," you must genuinely move in. There are penalties for fraudulent just-cause evictions.
For non-payment of rent, you must issue a 10-day notice. If the tenant pays within that 10-day period, the tenancy continues. For other lease violations, the notice period can vary depending on the nature of the violation. For a no-cause notice within the first year, you still need to provide 90 days' notice.
Oregon caps security deposits. A landlord cannot require a security deposit exceeding 2.00 months' rent. If rent is $1,500, the maximum security deposit you can collect is $3,000. Any portion of the security deposit collected beyond this cap is illegal. You must also return the security deposit within 31 days of the tenancy ending, itemizing any deductions.
As of recent legislative sessions, there has been ongoing discussion and some movement regarding further adjustments to Oregon's rent control framework. For instance, in 2023, the legislature passed SB 611, which made a notable change to the annual rent increase calculation. Previously, the cap was CPI + 7%. SB 611 adjusted this to CPI + 5% or 9% total, whichever is lower. This was a significant tightening of the cap. Landlords must stay current, as the legislature frequently considers bills impacting landlord-tenant law. Future sessions may explore further restrictions on no-cause evictions even within the first year, or adjustments to relocation assistance requirements.
In certain just-cause eviction scenarios, particularly those where the landlord is ending the tenancy for their own use (e.g., owner move-in, substantial renovation, demolition), you may be required to pay relocation assistance to the tenant. This is not a small sum. The amount varies and is typically tied to the number of bedrooms. For example, a two-bedroom unit could require several thousand dollars in relocation assistance. This is a critical cost to factor in if you are considering one of these specific just-cause evictions. Failing to pay required relocation assistance can result in significant penalties.
Understanding these rules is not optional. It is essential for operating rental properties in Oregon. Non-compliance can lead to substantial fines, legal fees, and unfavorable court judgments. Always consult the most current version of ORS § 90 and seek legal counsel when uncertain about specific situations.
| Annual rent increase cap | 7%+CPI, max 10% | |
| Just cause required for eviction | Yes | |
| Local rent control allowed? | Yes (subject to any state-law limits) |
The Oregon statutory rent-increase formula is 7%+CPI, max 10%, codified at ORS § 90 (Residential Landlord and Tenant). The cap limits the percentage by which a Oregon landlord may raise rent on a covered residential unit over any 12-month period, and applies both to renewal of a fixed-term Oregon lease and to rent increases within an ongoing month-to-month tenancy.
Typical Oregon rent-cap exemptions include: new construction (units first certified for occupancy within the statutory exemption window, commonly 15 years from the certificate of occupancy date); owner-occupied 2-to-4 unit buildings (so-called small owner-occupant exemption); single-family rentals under certain conditions (often exempt if the owner is a natural person and not a corporation, LLC, or REIT); units already subject to a regulated-affordability agreement (LIHTC, HUD Section 8 HAP, public housing, HOME, CDBG, inclusionary zoning); dormitories and institutional housing operated by universities, hospitals, religious institutions, or non-profit organizations; and hotels, motels, and transient lodging occupied for fewer than 30 days. Every Oregon landlord should verify the specific exemption language in the cited statute, exemptions are narrowly construed, and mis-claiming an exemption exposes the landlord to refund-of-overpayment, statutory damages, and attorney fees.
Oregon statutory rent-increase notice must be in writing and must state, at minimum, the current rent, the proposed new rent, the effective date of the increase, the percentage increase, the statutory formula used, and any allowable passthroughs (utility, property tax, capital improvement) separately itemized. Defective rent-increase notice is the #1 reason Oregon courts roll back rent increases, not cap violations themselves. A defective notice is treated as void, the prior rent remains in effect, and the landlord must re-serve a compliant notice before any increase takes effect. Typical advance-notice windows: 30 days for increases at or below a low statutory threshold, 60 to 90 days for larger increases.
Within Oregon, 2 additional city or county rent-stabilization ordinance(s) layer further requirements on top of the statewide Oregon rent cap, stricter percentage caps, expanded just-cause termination requirements, mandatory relocation assistance for covered tenancies, tenant-relocation fees triggered by certain rent increases, and city-level rent-registry or landlord-registration programs. See the rent-control city table above for the Oregon cities with local rent-stabilization ordinances on record; where both the statewide cap and a local ordinance apply, the stricter rule controls.
| City↕ | Ordinance↕ | Annual Cap↕ | Just Cause↕ | SFR↕ |
|---|---|---|---|---|
| Bend | Statewide ORS 90.323 applies | 7%+CPI, max 10% | Yes | Yes |
| Portland | Statewide ORS 90.323 applies | 7%+CPI, max 10% | Yes | Yes |
Comparing across states? See the national master list of U.S. cities with rent control — every city under a local ordinance or statewide cap, ranked by rent-control exposure.
9.5 percent. Under SB 608 / ORS 90.323, the annual rent cap is 7 percent plus the September West Region CPI (all-items index, percentage change), with an absolute ceiling of 10 percent. The Oregon Department of Administrative Services publishes the cap each September; 2026 came in at 9.5 percent. Recent caps: 2025 was 10 percent; 2024 was 10 percent; 2023 was 14.6 percent (before the absolute ceiling was tightened). Applies to most residential rentals in Oregon.
Yes. Unlike California's AB 1482 (which exempts single-family rentals not held by corporate entities), Oregon SB 608 applies to most residential rental housing including single-family homes, duplexes, and small multi-family buildings. The major exemption is the 15-year new-construction carve-out: buildings less than 15 years old are exempt from the rent cap. The exemption is rolling: a unit constructed in 2010 became covered in 2025; a 2011 unit becomes covered in 2026.
After the first 12 months of tenancy under ORS 90.427. During the first 12 months, the landlord may terminate without cause with 30 days notice. After 12 months, statutory cause is required: nonpayment, lease violation, criminal conduct, landlord-occupancy, major renovation, demolition, or conversion. For landlord-occupancy or renovation grounds, the landlord must pay one month's rent in relocation assistance (exemptions for very small landlords). The 12-month threshold applies regardless of the unit's rent-cap status; buildings exempt from the rent cap are still subject to just-cause after 12 months.
Yes. Oregon SB 608 permits vacancy decontrol: when a unit becomes vacant, the landlord may reset the rent at any level without regard to the annual cap. The unit re-enters rent control at the new rent for the subsequent tenancy. This is a design choice that differentiates Oregon from New York rent stabilization (where vacancy decontrol was eliminated by HSTPA in 2019) and from many New Jersey local ordinances (where vacancy resets are restricted).
Three months rent in statutory damages plus the overcharge plus reasonable attorney fees under ORS 90.385. The 3-times-rent damage provision creates substantial enforcement leverage; Oregon plaintiff-side tenant attorneys actively pursue overcharge claims. A landlord who increases rent by 11 percent on a $2,000-per-month unit exposes themselves to $6,000 in statutory damages plus the unlawful overcharge plus attorney fees on a single case. The exposure scales with rent and recurs every month the unlawful rent is collected.
Informational only, not legal advice. Consult a licensed Oregon attorney. Source attribution in the Sources band below.