Why This Matters
In the Portland–Vancouver metro, rent regulations directly shape cash‑flow stability, refinance eligibility, and valuation. Appraisers rely on predictable rental streams for income approach comparables, while lenders model risk differently across state lines. For investors, the 4‑to‑5 unit threshold is pivotal: properties with 1–4 units typically qualify for conventional Fannie Mae/Freddie Mac financing, while 5+ unit buildings fall into commercial lending. Because rent‑cap rules and relocation‑assistance exposure diverge sharply at this threshold, understanding the cross‑border distinctions is critical before acquiring or refinancing multifamily assets.
Oregon Statewide Framework (ORS Chapter 90, SB 611)
- No rent increase permitted during the first 12 months of tenancy
- Cap: 7% + CPI (West Region), maximum 10% annually
- Notice: 90‑day written notice required for any increase
- Relocation assistance: applies only if landlord owns 5+ units statewide
– One month’s rent paid to tenant for no‑cause terminations (ORS 90.427) - Exemption: units with certificates of occupancy issued within the prior 15 years
Portland City‑Specific Rules (PCC 30.01.085 – effective Jan 1, 2025)
- Applies regardless of landlord unit count
- Portland City‑Specific Rules (PCC 30.01.085 – effective Jan 1, 2025)
- Applies regardless of landlord unit count
- Any increase ≥5% in a rolling 12‑month period requires 90‑day notice
- Increases ≥10% give tenants the right to terminate with reduced notice and receive mandatory relocation assistance
– $2,900 studio/SRO
– $3,300 1‑bed
– $4,200 2‑bed
– $4,500 3+ bed - Exemptions require advance approval from the Portland Housing Bureau (e.g., week‑to‑week tenancies, owner‑occupied duplexes)
- Enforcement: non‑compliant landlords face liability for up to 3× monthly rent, damages, and attorney fees
Washington Statewide Stabilization (HB 1217 – signed May 2025)
- No rent increase in the first 12 months
- Cap: lower of 7% + CPI or 10% through Dec 31, 2025
- Manufactured homes: 5% cap
- Notice: 90 days for residential units; 180 days for mobile‑home parks
- Relocation assistance: no statewide mandate (though RCW 59.18.440 allows local governments to adopt programs)
- Exemptions:
– New construction (<12 years old)
– Nonprofit affordable housing
– Owner‑occupied 2–4 plexes - Enforcement: Washington Attorney General; penalties up to $7,500 per violation. August 2025 saw inaugural fines against landlords for unlawful increases.
Key Investor Takeaways
- 1–4 unit owners: favorable treatment in both states; no mandatory relocation payments (except inside Portland city limits, where PCC 30.01.085 applies)
- 5+ unit owners: Oregon relocation exposure (one month’s rent on no‑cause moves); Portland relocation exposure even for small landlords if increases ≥10%; Washington no statewide relocation mandate, creating a material cash‑flow difference across the Columbia River
Comparison Table
| Issue | Oregon Statewide | Portland (overlay) | Wash. HB 1217 | Impact 1–4 Units | Impact 5+ Units |
|---|---|---|---|---|---|
| First-year increase allowed? | No | No | No | Same both states | Same both states |
| Rent cap (2025) | 7% + CPI ≤10% | Same statewide cap | ≤10% (5% Mobile/ Manufact. parks) | Effectively identical | Effectively identical |
| Relocation assistance required? | Only if landlord owns 5+ units | Yes on ≥10% increase or qualifying no-cause | None statewide | Portland exception | Oregon yes / WA no |
| New build exempt | 15 years | Same | 12 years | WA slightly shorter | WA slightly shorter |
| Owner-occupied 2–4 plex exempt? | No | Possible with PHB approval | Yes | WA more favorable | WA more favorable |
Regional Implications for Appraisals
- Both states prohibit first‑year increases and require ample notice, promoting predictability in rental streams.
- Oregon’s relocation rules (especially Portland’s) stabilize occupancy in high‑turnover areas, dampening vacancy risk.
- Washington’s broader exemptions favor newer developments, potentially accelerating value growth in Clark County compared to Oregon’s focus on small‑landlord relief.
- Enforcement differences matter: Oregon emphasizes tenant remedies via damages, while Washington’s AG fines signal robust compliance.
Further Reading & Resources
- Oregon Revised Statutes Chapter 90 – Residential Landlord and Tenant: 2023 Edition
- ORS 90.427 – Termination of tenancy without tenant cause (relocation assistance): ORS 90.427
- Oregon Law Help – Eviction & Termination Notices: Guide
- Portland Renter Additional Protections (City Code 30.01.085): Official City Page
- Portland Mandatory Relocation Assistance Brochure (PDF): Download
- Portland Housing Bureau Relocation Rules & Exemption Form: HOU-3.05
- Washington HB 1217 – Rent Stabilization: 2025 legislation
- Washington Residential Landlord-Tenant Act: RCW 59.18
- Washington Attorney General: File a Tenant Complaint
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Question: Do you think other states will follow Oregon’s and Washington’s rent control laws?
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