2023 Oregon Maximum Rent Increase is 14.6%
On September 13, the State of Oregon's Office of Economic Analysis announced the maximum rent increase rate for 2023 to be 14.6%. Passed in February of 2019, SB 608 set the maximum rent increase formula to be 7% plus the West Coast Consumer Price Index, which changes every year. For 2022 the maximum increase was 9.9%.
The State of Oregon displays and updates yearly the annual maximum rent increase allowed in Oregon: https://www.oregon.gov/das/OEA/Pages/Rent-stabilization.aspx
Beginning January 1, 2023, rent increases going into effect for Oregon residents may not exceed 14.6%. While this applies statewide, housing providers must ensure that they meet any other applicable requirements, whether set by programs or by local jurisdictions, such as the City of Portland relocation ordinance. In the city of Portland, any rent increase exceeding 9.9%, may result in owing a relocation payment.
Please remember that there are limited exemptions to the rent cap for affordable housing providers and for new construction. Housing Providers should not increase rent more than 14.6% without ensuring that an exemption applies and that all required information is included in the notice. Multifamily NW has provided an overview of the rules related to SB 608 which you can review here. If you are still unsure of your rights under this law, we encourage you to consult with legal counsel.
Watching inflation rates rise this year across sectors and goods, a higher than normal rent cap was anticipated. As housing providers already know, rental rates are influenced by nuanced factors rather than the state’s maximum allowable rent increase. Despite inflationary challenges for housing providers, most renters are not likely to receive a 14.6% rent increase because for many properties it’s more than the market can bear. Rent rates are influenced in a far greater way by the costs of providing housing, which include property taxes, wages, repairs, maintenance, and utilities. These items have consistently risen year over year by multiple percentage points.
This informational article is not intended as legal advice. Please obtain advice of an attorney for any legal questions regarding residential Landlord-Tenant matters.