How the Oregon cap works
Senate Bill 608, passed in 2019, limited rent increases to 7% plus the annual change in the West region consumer price index. Senate Bill 611, passed in 2023, added a hard ceiling, so the maximum is now 7% plus CPI or 10%, whichever is lower. The state economic analysis office publishes the figure each fall for the following calendar year. For 2026 the maximum is 9.5%.
The cap applies to increases within any 12-month period, and a few timing rules come with it. Rent cannot be raised during the first year of a tenancy, only one increase is allowed in a 12-month period, and a month-to-month or fixed-term tenant must receive at least 90 days’ written notice stating the amount and the effective date. An owner who raises rent above the cap can owe the tenant three months’ rent plus actual damages, so buyers pay attention to how past increases were handled.
Which buildings are covered
The cap reaches most rental housing whose first certificate of occupancy is more than 15 years old, and the window rolls forward each January. In 2026, buildings first occupied in 2010 or earlier are covered, and a building finished in 2011 will come under the cap in 2027. Regulated affordable housing with rents set by a government program is exempt.
The cap also does not limit the first rent you set for a new tenant when the previous tenant left voluntarily or was removed for cause. That vacancy reset is the key difference between Oregon and older city rent control programs, and it is why buyers still see upside in an Oregon building with below-market rents and normal turnover. The reset does not apply the same way when a tenancy ends for one of the owner-driven reasons described below.
Just-cause rules after the first year
Once a tenant has occupied a unit for a year, the owner can end a month-to-month tenancy only for tenant cause, such as nonpayment or a lease violation, or for a listed landlord reason. The landlord reasons include demolition or conversion, repairs that make the unit unsafe to occupy, an owner or immediate family member moving in, and a sale to a buyer who will live in the unit.
A landlord-reason termination requires 90 days’ written notice and, for owners with more than four units, a payment equal to one month’s rent. A fixed-term lease after the first year generally converts to month-to-month rather than ending, unless the tenant has had repeated lease violations. For a buyer of a multifamily building, this means the rent roll you hand over is the rent roll they will operate for the foreseeable future.
Portland adds its own layer
State law bars Oregon cities from adopting their own rent control, but Portland has added relocation requirements that affect value. An owner in Portland must pay relocation assistance when ending a tenancy without cause or for a qualifying landlord reason, and when a tenant receives a notice of a rent increase of 10% or more within a rolling 12-month period and chooses to move. The amounts are set by unit size, currently $2,900 for a studio up to $4,500 for a three-bedroom or larger unit.
Because the 2026 statewide cap is below 10%, the rent increase trigger mostly matters for exempt newer buildings and for any increase that stacks with other charges. Portland also has its own notice, screening and security deposit rules, and some exemptions require a filing with the city housing bureau. Buyers ask whether any required exemption letters are on file.
How Skyline underwrites Oregon buildings
We check each building’s certificate of occupancy date to see whether it is under the cap or when it will be, then model renewals at or below the published maximum and new leases at market after normal turnover. We estimate turnover from actual tenancy lengths and budget Portland relocation costs where they apply. Skyline buys buildings of 5 units and up anywhere in the state, occupied and as-is, including properties with vacancy, deferred maintenance or management problems.
You will typically get clear feedback within about 48 hours of sending the deal. If it fits, we follow with a written LOI and a closing date that works for you, including a seller-carry note or delayed timing for a 1031 exchange.
