Tag: Rent Stabilization

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

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