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Understanding Oregon’s Rent Increase Cap (2025): What Small Landlords Must Know

A practical guide to Oregon’s statewide rent stabilization rules for 2025: the cap, exemptions, notice timing, and a worked example.

Overview

Oregon law limits annual rent increases for most residential tenancies. In 2025, the allowable maximum was published as 10.0%, reflecting the statutory formula of the lesser of 7% + CPI or 10%. The cap applies after the first year of tenancy and includes specific notice and frequency limits.[1][2]

What exactly is the cap?

Oregon’s cap is defined in statute and calculated each year by the state using CPI data. Since the 2023 amendments (SB 611), the cap equals the lesser of 7% + CPI or 10%. For the 2025 period, the state reported the maximum annual rent increase at 10.0%.[2][1]

Notice & Frequency Rules

  • First-year freeze: No increases during the first year of tenancy.
  • 90-day notice: After the first year, landlords must give at least 90 days’ written notice before the increase takes effect.
  • Once per 12 months: No more than one increase in any 12-month period.

These requirements are codified in ORS 90.323, which also specifies what must be included in the notice (amount of increase, new rent, effective date, and the basis for any exemption claimed).[3]

Key Exemptions

  • New construction: Units whose first certificate of occupancy was issued less than 15 years before the notice date.
  • Regulated affordable housing: If the change doesn’t increase the tenant’s portion, or is required by the program or income changes.

See ORS 90.323(5) for the complete exemption language.[3]

Portland overlays

If the unit is in Portland, remember local overlays like enhanced notice details and Renter Relocation Assistance triggers for certain rent increases or terminations. Portland publishes guidance and code sections specifying content of rent-increase notices and relocation-assistance eligibility.[4][5]

Worked Example

You charge $1,600/month. You’re outside the first year, and no increase has occurred in the past 12 months.

  1. State cap (2025) = 10.0%.
  2. Max new rent = $1,600 × 1.10 = $1,760.
  3. Serve a written notice at least 90 days in advance, stating the increase amount ($160), new total rent ($1,760), and the effective date.

Compliance Checklist

  • Verify the unit isn’t exempt (new construction or regulated affordable housing).
  • Confirm no increase occurred in the last 12 months.
  • Prepare a notice that meets ORS 90.323 content requirements.
  • For Portland: review local overlays (notice content + relocation rules) before sending.

Sources

  1. Oregon Office of Economic Analysis — Rent Stabilization page (shows the 2025 allowable increase)
  2. Oregon Housing & Community Services — Rent Increase Policy (post‑SB 611 cap: lesser of 7% + CPI or 10%)
  3. ORS 90.323 — Maximum rent increase; exceptions; notice
  4. Portland City Code 30.01.085 — Renter Additional Protections (rent increase notice content)
  5. Portland Housing Bureau — Renter Relocation Assistance

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Understanding Oregon’s Rent Increase Cap (2025): What Small Landlords Must Know — Chez-Moi Blog