Oregon 2025 Rent-control Cap On Many Houses & Apartments Released

Oregon’s increased rent-control cap on several houses and apartments announced on Monday will allow landlords to raise rents by up to 10% in many homes in 2025.

Oregon Rent Control Cap Increased For 2025

Oregon’s rent control law passed in 2019 making it the first state nationwide to write a cap into law, a mechanism seen by supporters of the law as a way to stabilize unregulated price increases.

In 2023, the law was modified, setting a ceiling at the lesser of 10% or 7% plus inflation. The law only regulates older homes and doesn’t affect rentals built in the past 15 years.

The Department of Administrative Services indicated that historically, the cap has been around 9% to 10% since 2019, excluding the 14.6% it reached in 2023 for half the year amid punishing inflation. Last year, renters’ rights groups expressed their dismay, claiming that the high permissible increases would result in more evictions.

According to landlord representatives, the rent cap formula plays a lesser role, with property taxes and housing demand exerting a stronger influence on their pricing decisions. They said most rent increases are below the statutory maximum.

After the half-year increase in 2023, the rate reset to 10% later in the year after lawmakers voted to include an upper limit. Oregon’s Office of Economic Analysis, which must issue a rate by Sept. 30 annually, confirmed that the rate remained at 10% in 2024 and will continue at this rate in 2025.