Oregon Rent Increase Laws

Is there a rent increase limit in Oregon? 

Compared to other jurisdictions, Oregon laws outline specific rules for landlords to follow. Here’s a quick recap of the state’s price caps, local laws, and exceptions.

Statewide Caps

In Oregon, landlords can’t increase rent within the first 12 months of a tenancy. After the first year, you can only raise rent once every 12 months. Additionally, state law caps rent increases at the lesser of 7% plus the annual change in the Consumer Price Index (CPI) or 10% (Or. Rev. Stat. § 90.323, 324).

Local Rent Control Ordinances

Beyond the statewide policy, Oregon bans local rent control at the city and county level. Instead, all landlords must follow the state’s rules (Or. Rev. Stat. § 91.225).

However, Portland enforces additional tenant protection laws. In Portland, landlords must pay tenants mandatory relocation assistance in certain situations. The city specifies different amounts based on the property size, such as:

• $2,900 for studios
• $3,300 for 1-bedroom units
• $4,200 for 2-bedroom units
• $4,500 for 3+ bedroom units

Additionally, tenants must request relocation assistance in writing within 45 days. Then, landlords must pay within 31 days (Portland, Or., Code § 30.01.085).

Exceptions

Oregon exempts the following properties from the rent control laws:

• New construction units for the first 15 years of occupancy
• Subsidized rental properties governed by federal, state, or local housing programs
• Owner-occupied properties with limited units (Or. Rev. Stat. § 90.323)

Remember, Oregon rent increase laws evolve. Check state and local regulations before increasing rent, or consult a trusted lawyer to stay compliant.

Rent Increase Notice Periods

Additionally, Oregon requires different notice periods based on your lease agreement type. Here’s how it works:

90-day requirement: If you use a fixed-term or month-to-month agreement, provide at least 90 days’ written notice before raising rent. And remember, you can’t raise rent within the first 12 months (Or. Rev. Stat. § 90.323).

7-day requirement: Landlords who use a week-to-week arrangement must only give 7 days’ advance notice in writing (Or. Rev. Stat. § 90.323).

Follow the same rules if you have a room rental agreement, too. And remember, you can’t raise rent in the middle of an active tenancy unless a lease clause permits it. Instead, wait until the tenancy ends and propose the new rent when offering the lease renewal.

How to Deliver a Rent Increase Notice in Oregon

Oregon rent increase laws allow landlords to use multiple delivery methods when serving written notice, including:

• Deliver the letter personally.
• Mail the notice using first-class or Certified Mail.
• Use landlord software or email to send the notice digitally (if tenants agree in writing).
• Post the letter at the rental unit and mail a copy (Or. Rev. Stat. § 91.155).

Pro Tip: Because notice becomes effective when tenants receive your letter, wait 3 business days if you mail it.

Understanding Illegal Rent Increase and Retaliation

When raising your unit’s monthly rate, never attempt to punish tenants for exercising their protected rights or discriminate against them.

Oregon law prohibits landlords from retaliating against tenants who exercise their legal rights, such as:

• Complaining about code violations.
• Reporting housing violations to government agencies.
• Joining or starting a tenant union (Or. Rev. Stat. § 90.385).

Additionally, federal law protects tenants from discriminatory increases based on the following federally protected traits:

• Race
• Color
• National origin
• Religion
• Sex
• Familial status
• Disability (Fair Housing Act)

Remember, keep your rent increase protocols fair and consistent across every tenant. Always give proper notice, and don’t breach your contract by attempting a mid-lease hike without a clause permitting it.

How to Write an Oregon-Compliant Rent Increase Letter

Now that we’ve covered Oregon rent increase laws in detail, let’s discuss the rent increase letter. State law specifically requires the letter to include the following:

• Updated rent price
• The increase’s effective date (Or. Rev. Stat. § 90.323)

For added clarity and compliance, we recommend including additional information, including:

• Full property address with unit number
• Tenant names
• Exact dollar amount of the increase
• Instructions for tenants to accept or opt out 

Easily include all these details with a PDF template. Download our free rent increase letter template to create standardized, professional letters for all of your tenants.

Managing the Rent Increase Process with Tenants

After you notify tenants, they either accept or decline the new rate. And in some cases, they negotiate. Here’s how to move forward:

• Accept: Prepare the updated lease outlining your new price. After tenants sign it, start charging the increased rate on the effective date. But wait until the 4th day of the monthly rent period before charging late fees (Or. Rev. Stat. § 90.260).
• Decline: Begin discussing move-out protocols and prepare to re-list your property. Be proactive about finding your next tenant to avoid gaps in rental income.
• Negotiate: When tenants push back and ask you to reconsider, you don’t automatically have to budge on price. Instead, try offering a longer lease term or delaying the effective date of the rate.

Remember, Oregon rent increase laws are stricter than most states. But that doesn’t mean renewals have to be risky and stressful. Use this helpful guide to streamline compliance, protect your investment, and keep your business profitable — one rent increase at a time.