Tag: Appraisal News

Portland Real Estate Appraisal Brief – Sunday, November 30, 2025: Oregon Rent Laws vs. Portland’s Tenant Protections

Oregon’s 9.5% rent cap for 2026 combines with Portland’s relocation assistance rules, creating distinct valuation considerations for rental properties across the metro area.

Via Wikimedia Commons

Oregon’s statewide rent stabilization framework under the Residential Landlord and Tenant Act provides a uniform baseline for rental increases and evictions across the state, including the Portland metro area. Oregon was the first U.S. state to enact comprehensive statewide rent control in 2019 (via Senate Bill 608), followed by California later that year (via AB 1482) and Washington in May 2025 (via HB 1217). These statutes establish annual limits on rent increases for most residential properties, with exemptions for new construction and certain subsidized housing. However, within the city limits of Portland, local ordinances add layers of tenant protections that require relocation assistance for certain terminations and rent hikes. As a certified residential appraiser serving homeowners, lenders, realtors, estate planners, and attorneys in the region, understanding these distinctions is crucial for accurate property valuations, especially for income-producing rentals where regulatory constraints directly influence projected cash flows and market discounts.

Key provisions include rent increase limits under ORS 90.323 and their annual calculation under ORS 90.324.

Statewide Rent Stabilization and Eviction Basics

Under ORS 90.323, landlords cannot raise rent during the first year of tenancy or more than once every 12 months thereafter. The maximum allowable increase for calendar year 2026 is capped at 9.5%. Violations expose landlords to liability for three months’ rent plus actual damages.

Just-cause eviction requirements under ORS 90.427 prohibit no-cause terminations after the first year. Qualifying landlord reasons (major remodel, owner/family move-in, etc.) still require proper notice and, in some cases, one month’s rent as assistance. Exemptions from these protections include units less than 15 years old from the date of the certificate of occupancy, federally subsidized or regulated affordable housing (where the tenant’s portion does not rise or the increase is program-mandated), owner-occupied duplexes or triplexes (where the landlord resides in one unit), and certain short-term rentals.

Portland’s Local Overlay: Enhanced Relocation Assistance

Portland builds on these state protections through City Code 30.01.085 – the Renter Additional Protections ordinance. The city applies Oregon’s statewide cap but adds relocation assistance obligations when rent increases reach 10% or more (for units otherwise exempt from the statewide cap, such as newer construction or subsidized housing). Relocation assistance is also required for:

  • Non-renewal of fixed-term leases
  • Qualifying landlord reasons under state law
  • Substantial changes to lease terms beyond rent or utilities

Payments (due 45 days before termination or within 31 days of tenant request) are scaled by unit size:

  • $2,900 (studio/SRO)
  • $3,300 (1-bedroom)
  • $4,200 (2-bedroom)
  • $4,500+ (3+ bedrooms)

Landlords must file exemption forms with the Portland Housing Bureau when applicable and notify the Bureau of payments within 30 days.

Valuation Implications for the Portland Metro Area

For estate planners and attorneys handling inherited rentals, these combined rules often lock in below-market tenancies. Homeowners converting properties to rentals must project income conservatively. Realtors listing income properties typically disclose scheduled rents via RMLS. A listed property with units significantly below market rent levels may receive low offers and usually sells at a substantial discount.

Lenders benefit from reduced turnover risk but must recognize higher operating costs inside Portland city limits. For appraisers, the dual framework means statewide rent caps set the ceiling, while Portland’s relocation obligations add another layer of financial consideration.

Geographic Scope

Oregon’s statewide rules apply in the Portland Region (Columbia, Clackamas, Hood River, Multnomah, Washington, and Yamhill Counties). Portland’s relocation overlay is city-specific. Properties in the Vancouver Region (Clark, Cowlitz, Klickitat, and Skamania Counties) fall under Washington’s separate statewide stabilization law (enacted May 2025), which exempts new construction for 10 years and caps annual increases at 7% + inflation, not to exceed 10%.

Further Reading & Resources

  • Oregon Residential Landlord and Tenant Act (full chapter): ORS Chapter 90
  • Rent Increase Limits & Notice Requirements: ORS 90.323
  • Annual Rent Cap Calculation: ORS 90.324
  • Termination of Tenancy without Tenant Cause: ORS 90.427
  • 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
  • Oregon Law Help – Eviction & Termination Notices: Guide
  • Oregon Senate Bill 608: PDF
  • California AB 1482
  • Washington HB 1217

Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.

Question: Do you think other cities in Oregon will add relocation assistance provisions?

CODA

Are you an agent in Portland and wonder why appraisers always do “x”?

A homeowner with questions about multifamily income properties, GRMs, or income calculations?

If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.

And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.

Portland Real Estate Appraisal Brief – Saturday, November 29, 2025: Oregon Sets 2026 Rent Cap at 9.5%

Oregon’s 2026 rent cap is set at 9.5%. See the key details and implications of this policy for Portland metro rental valuations, property owners, and investment strategies.

Portland appraisal brief graphic for Oregon 2026 9.5% rent cap official announcement.

The Oregon Department of Administrative Services (DAS) has released the official rent stabilization percentages for 2026, offering clarity for landlords, tenants, and housing professionals statewide. As a certified residential appraiser serving the Portland metro area, I track these updates closely because they influence rental market dynamics, which in turn affect property valuations for homeowners, lenders, realtors, estate planners, and attorneys.

This annual adjustment, governed by ORS 90.323 (maximum rent increase) and ORS 90.324 (calculation and publication), ensures rent increases align with inflation while offering predictability in a volatile housing market. Published on September 30, 2025, the announcement ties directly to the state’s rent control measures enacted to protect tenants from excessive hikes.

For most residential tenancies in the Portland region, the maximum allowable rent increase will be 9.5% starting January 1, 2026. This figure represents the lesser of 10% or 7% plus the Consumer Price Index for All Urban Consumers (CPI‑U) for the West Region, All Items, based on data from the previous 12 months. The calculation reflects a measured response to rising living costs, down slightly from the 10.0% cap in 2025.

Key Details on the 2026 Rent Cap

Understanding the nuances of this cap is essential for anyone involved in residential leasing or valuation in Oregon. The 9.5% limit applies broadly to tenancies under ORS 90.323, which covers most single‑family homes, apartments, and multifamily units in the region. Landlords must provide at least 90 days’ written notice for any increase up to this threshold, and the cap applies per 12-month period and increases may only be given once in any 12-month period.

Exemptions and special cases:

  • Smaller facilities (≤30 spaces): Manufactured dwelling parks or marinas follow the same formula—10% or 7% + CPI (9.5% in 2026).
  • Larger facilities (>30 spaces): Parks or marinas face a stricter 6% maximum increase under ORS 90.600.
  • Exclusions: New tenancies in the first year, fixed‑term leases without renewal, and exempt properties (e.g., subsidized housing). Utilities and fees may rise separately from base rent.

These provisions help maintain stability in the Portland metro area’s rental landscape, where median asking rents have hovered near $1,987 for a two‑bedroom unit according to RentCafe’s Portland rental market report (Nov 2025). Zillow places the overall average asking rent across unit types at $1,772 (Zillow Portland Rental Market; snapshot date 11/28/2025). Neighborhood‑level data shows two‑bedroom rents ranging from $1,800 to $2,400, underscoring the variability across the metro.

For appraisers, knowing the precise rent cap helps model the timeline required to bring a property or multifamily project back to market rents, especially when current leases are below prevailing rates. This allows for more accurate income projections.

Implications for Portland Metro Property Owners and Professionals

  • Homeowners: Must factor the 9.5% ceiling into rental conversion ROI, especially when evaluating single‑family properties for lease. The cap limits upside potential in a demand‑heavy market and affects long‑term income projections.
  • Realtors: Benefit from being able to project realistic rental growth figures in listings, particularly for multifamily properties (2+ units). The cap provides a clear ceiling for annual rent increases, which helps set buyer expectations and avoid overpromising future income.
  • Lenders: Gain greater clarity into a property’s income potential, allowing for more accurate underwriting and valuation.
  • Investors: Stay aligned with prevailing market rates while complying with legal pacing. For multifamily portfolios, knowing the exact rent cap helps plan staggered increases and avoid underperformance due to below-market rents.

Sources & Further Reading

Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.

Question: Do you think the annual cap will ever drop significantly, or will persistent inflation keep the annual increase at about 10%?

CODA

Are you an agent in Portland and wonder why appraisers always do “x”?

A homeowner with questions about multifamily income properties, GRMs, or income calculations?

If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.

And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.

Portland Real Estate Appraisal Brief – Friday, November 28, 2025: FHFA Q3 2025 House Price Index: National Trends, Oregon Context, and the Role of Appraisers

FHFA Q3 2025 HPI: U.S. +2.2% YoY, Oregon +0.31%, Portland MSA +1.51% — appraisal insights and practical implications for Portland appraisers and lenders.

National Overview & Oregon Statewide Performance

On November 25th, the Federal Housing Finance Agency (FHFA) released its Q3 2025 House Price Index (HPI). Nationally, home prices rose 0.2% quarter‑over‑quarter, and 2.2% year‑over‑year, reflecting a cooling but still positive trajectory across most regions.

Oregon posted +0.31% annual appreciation, ranking 45th nationally, with a –0.16% quarterly decline. These subdued figures mirror the broader West Coast trend: Washington registered +1.37% YoY, while California slipped –0.62% YoY. Oregon’s modest growth reflects a market in balance—neither surging nor contracting sharply.

Map showing Four-Quarter House Price Change by State. Source: FHFA

Portland-Vancouver-Hillsboro MSA

In the “Purchase-only” FHFA index, the seven‑county Portland‑Vancouver‑Hillsboro MSA outperformed the statewide average slightly, recording +0.16% quarterly growth and +1.51% annual appreciation (” Seasonally Adjusted, Nominal” category). This MSA includes:

  • Oregon counties: Clackamas, Columbia, Multnomah, Washington, and Yamhill.
  • Washington counties: Clark and Skamania.

The inclusion of Clark County (Vancouver metro) is significant. Its size and activity often moderate or amplify Oregon‑centric trends, making the FHFA MSA lens broader than the Oregon‑only focus used in our local reporting.

In the “All-transactions” FHFA index, the values are similar but slightly different, recording -0.36% quarterly decline and +1.91% annual appreciation. This places the Portland‑Vancouver‑Hillsboro MSA 167th among all reporting MSAs.

Comparison with Our Six-County Oregon Focus

In our Q3 2025 Portland region market update (covering Columbia, Clackamas, Hood River, Multnomah, Washington, and Yamhill), we noted:

  • Median closed price flat at $600,000.
  • Cumulative days on market up to 52 (a 13%+ increase).
  • Sales volume essentially unchanged.

The FHFA’s +1.51% YoY for the seven‑county MSA aligns directionally with this stability but reflects slightly stronger performance due to Clark County’s contribution. When Clark and Skamania are excluded, the Oregon counties track closely with our reported flat medians and lengthening market times.

Methodology Matters: How FHFA Builds the HPI

The FHFA HPI is not just another dataset—it’s one of the most authoritative measures of U.S. housing trends. Here’s how it works:

  • Repeat-Sales Index: FHFA tracks the same property across multiple transactions to measure price changes over time.
  • Purchase Transactions: Use the sales price recorded in the mortgage data.
  • Refinance Transactions: Use the appraised value reported at the time of refinance (if an appraisal was ordered). Automated Valuation Models (AVMs) are not used.
  • Coverage: Only conforming conventional mortgages purchased or guaranteed by Fannie Mae and Freddie Mac are included.
  • New Construction: A new home enters the dataset when financed with a conforming mortgage, but it only contributes to the repeat-sales index once a second transaction occurs (sale or refinance).

This methodology ensures consistency and reliability, but it also means the index can lag in capturing brand‑new construction markets.

A Shoutout to Appraisers

Appraisers play a critical role in the FHFA dataset. Every time a refinance transaction includes an appraisal, that value becomes part of the HPI’s foundation. In other words:

  • Appraisal values anchor the index when no new sale price exists.
  • Consistency in appraisal practice ensures the HPI remains credible and defensible.
  • Local expertise matters: Appraisers’ ability to interpret market conditions, select comps, and apply adjustments directly influences the quality of the data feeding into national housing benchmarks.

Without appraisers, the FHFA’s “all‑transactions” index would be incomplete. Their work provides the bridge between raw market activity and standardized national reporting.

Appraisal Implications

Residential Valuations (1–4 Units):

  • Within Oregon counties, the FHFA’s +0.16% quarterly change supports only minimal positive time adjustments in paired‑sales analysis.
  • Of course, submarkets and particular neighborhoods may diverge from the broader trend. Appraisers must carefully define the competitive submarket for each property and measure market‑condition changes within that context.
  • Flat medians and longer days on market suggest no broad market‑condition adjustments are warranted for most single‑family assignments, but localized dynamics can still justify nuanced treatment.

Cross‑Border and Portfolio Work:

  • For assignments involving Clark or Skamania counties, or when lenders request regional context, the FHFA MSA index provides an authoritative benchmark.
  • The modest +1.51% annual growth reinforces conservative expectations for refinance, purchase, and estate‑planning valuations across the full seven‑county footprint.

Why This Matters

Homeowners, lenders, realtors, estate planners, and attorneys benefit from seeing both perspectives:

  • Oregon‑only trends (flat medians, longer marketing times)
  • FHFA’s broader MSA view (slightly stronger due to Clark County)

Together, they provide a fuller picture of market stability and cross‑border dynamics in the Portland metro.

Frequently Asked Questions (FAQ)

What is the FHFA House Price Index (HPI)?

The FHFA HPI is a repeat‑sales index that measures changes in single‑family home values using data from Fannie Mae and Freddie Mac mortgages. It tracks the same property across multiple transactions to calculate price changes over time.

Does the HPI measure home prices directly?

No. The HPI does not report the median or average home price in dollars. Instead, it measures the percentage change in value between two transactions of the same property.

  • Example: If a home sold for $300,000 in 2015 and then $360,000 in 2025, the HPI records a 20% increase.
  • The index is built entirely from these changes, not from raw price levels. This makes the HPI excellent for tracking market movement, while MLS data is better for reporting actual price levels.

How does the repeat‑sales methodology work?

  • The index only includes properties with at least two transactions (purchase or refinance).
  • It measures the change in value between those two points, not the absolute level of prices.
  • This approach reduces noise from property differences and focuses on market movement.

What about new construction?

  • A new construction sale enters the dataset when financed with a conforming conventional mortgage.
  • However, it does not contribute to the repeat‑sales index until a subsequent transaction occurs (another sale or a refinance with an appraisal).
  • In other words, the first sale is logged, but the property only becomes “active” in the index once there’s a second data point.

What are the implications of this approach?

  • Coverage bias: The HPI does not immediately reflect brand‑new construction markets.
  • Lag effect: It takes time for new construction to show up in the index, often when owners refinance or resell.
  • Complementary data: FHFA also publishes purchase‑only indices (sales prices only) and expanded‑data indices (including FHA and county recorder data) to capture broader market activity.

Do refinances count in the FHFA HPI?

Yes. When a refinance includes an appraisal, the appraised value is used as the second transaction point. Automated Valuation Models (AVMs) are not used. This makes appraisers’ work central to the dataset.

Which counties are included in the Portland‑Vancouver‑Hillsboro MSA?

The FHFA defines the Portland MSA as seven counties:

  • Oregon: Clackamas, Columbia, Multnomah, Washington, Yamhill
  • Washington: Clark, Skamania

This differs from our six‑county Oregon‑only focus, which includes Hood River but excludes Clark and Skamania.

How does FHFA data differ from RMLS or local MLS data?

FHFA data is based on conforming conventional mortgage transactions purchased or guaranteed by Fannie Mae and Freddie Mac. It provides a broad index of price changes, useful for regional benchmarking.

By contrast, RMLS (and other local MLS systems) reflect all listing and sales activity, regardless of financing type. This includes transactions financed with FHA, VA, jumbo loans, private financing, and even cash sales. RMLS also reports granular metrics such as median prices, days on market, and sales volume.

👉 In short: FHFA offers a standardized, mortgage‑based view of price movement, while RMLS captures the full spectrum of market activity, making it indispensable for appraisers and analysts who need transaction‑level detail.

Sources & Further Reading

  • FHFA House Price Index Quarterly Report 2025Q3 (full report)
  • FHA All Transactions Quarterly Tables (Q3 2025)

For current market context on inventory and pricing trends in the Portland region, see our Q3 2025 Market Update.

Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.

Question: Do you think Q4 2025 will be flat in Oregon, or will see some significant price movement?

CODA

Are you an agent in Portland and wonder why appraisers always do “x”?

A homeowner with questions about appraisal contingencies, comp selection, or reconsiderations of value?

If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.

And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.