The Oregon Department of Administrative Services (DAS) has published the annual maximum rent increase allowed by statute for calendar year 2025 and the Oregon rent control law maximum percentage is 10%, according to a release.
The rent increase is 7% plus the annual 12-month average change in the Consumer Price Index for All Urban Consumers, West Region (All Items), as most recently published by the Bureau of Labor Statistics of the United States Department of Labor, or 10%, whichever is lower.
The allowable rent increase percentage for the previous year, 2024, was 10%.
Since implementation in 2019, the rate has held around nine or 10%, with the exception of 2023 prior to July 6. The mid-year change was due to a change in the law that capped the rent increase at 10%.
In 2023, Oregon Gov. Tina Kotek signed a revised rent control law, SB 611, which caps rents and prohibits landlords from charging a rent increase annually of more than 10 percent regardless of inflation.
That rent control law also makes key changes to how the maximum-allowable annual rent increase percentage is calculated for residential tenancies.
The bill was passed to fix the previous rent control law that limited rent hikes to seven percent plus inflation. But when the Consumer Price Index showed high inflation, some recent cases resulted in 14 percent rent increases.
SB 611 states that the maximum allowable annual rent increase percentage is calculated as the lesser of:
- Ten percent; or
- Seven percent plus the September annual 12-month average change in the Consumer Price Index for all urban customers, according to the Portland Housing Bureau Rental Services Office.
SB 611 also clarifies that during any tenancy, other than week-to-week, the landlord may not increase the rent more than once during any 12-month period.
Oregon was the first state in the nation to pass a statewide Oregon rent control law.
