Oregon Rent Control Laws: SB 608 and What Tenants Need to Know

Oregon became the first state in the country to enact statewide rent control when Governor Kate Brown signed Senate Bill 608 into law on February 28, 2019. The law caps annual rent increases at 7% plus the Consumer Price Index (CPI), restricts no-cause evictions for tenants who’ve lived in a unit more than 12 months, and exempts buildings less than 15 years old. For tenants, the law provides the strongest rent protections outside of a handful of individual cities (New York, San Francisco, Los Angeles). For landlords and real estate investors, it fundamentally changed the economics of rental property ownership in Oregon.

SB 608: The Key Provisions

How the Rent Cap Works

The annual rent increase cap is calculated as 7% plus the September-to-September change in the Consumer Price Index for the West Region, published by the U.S. Bureau of Labor Statistics. The Oregon Department of Administrative Services announces the maximum allowable increase each September for the following calendar year.

After the 2023 spike (14.6% maximum), the legislature amended the law to impose a hard cap of 10% regardless of CPI. This means even if inflation surges again, landlords cannot raise rent more than 10% in a single year on covered units.

Important Rules About Rent Increases

• Only one increase per 12-month period: Landlords cannot raise rent more than once in any 12-month period, regardless of the amount
• 90-day written notice required: Landlords must provide at least 90 days’ advance written notice of any rent increase
• The cap applies to the entire year: If a landlord raises rent by 5% in March, they cannot raise it another 5% in November — the total must stay within the calendar year maximum
• No banking: Landlords cannot “bank” unused increases from previous years (e.g., if you didn’t raise rent for 3 years, you can’t do a 30% catch-up increase)
• Vacancy resets: When a tenant voluntarily vacates, the landlord can set the new rent at any amount for the next tenant. The cap only applies to in-place tenants.

No-Cause Eviction Protections

SB 608’s eviction protections are just as significant as the rent cap. After a tenant has lived in a unit for 12 months, the landlord can only terminate the tenancy for specific reasons:

The relocation assistance requirement (one month’s rent) applies to all no-cause qualifying terminations. If a landlord owns four or more units in Portland, the city’s own relocation ordinance may require additional payments on top of the state requirement — up to three months’ rent in some cases.

What’s Exempt from SB 608

Not all rental housing is covered. Key exemptions:

• New construction (under 15 years old): Buildings with their first certificate of occupancy issued less than 15 years ago are fully exempt from rent caps. This is designed to avoid discouraging new housing development. The exemption follows the building, not the owner — when the building turns 15, it becomes subject to the cap.
• Subsidized affordable housing: Units regulated under Low-Income Housing Tax Credit (LIHTC), Section 8 project-based, or other government programs are exempt because their rents are already controlled by the subsidy terms.
• Owner-occupied duplexes: If the landlord lives in one unit of a duplex, the other unit is exempt from the no-cause eviction protections (but not the rent cap — this is debated and varies by legal interpretation).
• Week-to-week tenancies: Short-term rentals and week-to-week tenancies are not covered.

Portland’s Additional Protections

Portland has its own tenant protection ordinances that layer on top of SB 608:

These additional Portland rules apply only within Portland city limits and create one of the most tenant-friendly regulatory environments in the country. Landlords operating in Portland need legal counsel familiar with both state and city requirements — the penalties for non-compliance include statutory damages and attorney fees.

Impact on Oregon’s Rental Market

SB 608 has produced mixed results since 2019:

• Rent growth: Oregon rents have continued to increase but at a pace below the cap for most markets. Portland median rents grew 3–5% annually from 2019–2025, well below the 8–14% cap. The cap functions as a ceiling, not a target.
• Vacancy rates: Portland’s vacancy rate has fluctuated between 4–6% since SB 608 passed, roughly in line with pre-law trends. The feared spike in vacancies (from landlords pulling units off the market) has not materialized.
• New construction: The new-construction exemption has preserved developer interest. Portland permitted over 5,000 new multifamily units in 2024, consistent with pre-SB 608 trends.
• Evictions: No-cause eviction filings have dropped significantly. For-cause evictions have increased modestly, suggesting some displacement of no-cause terminations into for-cause categories.

Average Rent by Oregon Metro (2026)

Despite the 10% maximum allowable increase, actual rent growth across Oregon metros is running 3–4% — well below the cap. Market forces (new supply, wage growth, migration patterns) have more influence on rents than the cap itself in the current environment. The cap’s primary value is as a safety net against extreme increases during housing crunches or supply shocks.

What Tenants Should Know

• Document everything: Keep copies of your lease, all rent increase notices, and communications with your landlord. If a dispute arises, documentation is your strongest defense.
• Verify rent increases: Check that any increase is within the annual cap and was given with 90 days’ notice. Increases that violate SB 608 are void — you can refuse to pay the illegal portion.
• Know your rights after 12 months: Your landlord cannot terminate your lease without a qualifying reason after you’ve been in the unit for one year. If you receive a no-cause termination notice, contact the Oregon State Bar’s lawyer referral service or Legal Aid Services of Oregon.
• Relocation assistance: If your landlord terminates your tenancy for a qualifying reason (not for-cause), you are owed at least one month’s rent in relocation assistance. This must be paid before you vacate.
• Compare costs: Use our rent vs. buy calculator to determine if buying makes more financial sense than renting in your current market.

What Landlords and Investors Should Know

• Track the annual cap: The maximum allowable increase is published each September at the Oregon Department of Administrative Services website. Build your rental income projections around the cap, not market-rate assumptions.
• Give proper notice: Rent increases require 90 days’ written notice. Failure to provide proper notice voids the increase and can result in statutory damages.
• Budget for relocation payments: If you anticipate terminating tenancies for qualifying reasons, budget for one month’s rent per tenant (more in Portland).
• Consider new construction: Buildings less than 15 years old are exempt from rent caps. If you’re investing in Oregon rental property, newer buildings offer more pricing flexibility.
• Understand vacancy resets: You can set any rent amount for a new tenant after a voluntary vacancy. The cap only limits increases for in-place tenants. This creates an incentive to maintain good tenant relationships and minimize turnover.

Evaluate rental property investment returns with our mortgage calculator and affordability calculator.

Oregon vs. Other States: Rent Control Comparison

Oregon’s law is most similar to California’s AB 1482, passed later the same year (2019). Both states cap increases at CPI plus a fixed percentage and exempt newer buildings. Oregon’s 7% base is higher than California’s 5%, making Oregon’s cap slightly less restrictive in low-inflation years. Both states share the 10% hard cap. The key difference: California’s law includes a sunset clause (expires 2030) while Oregon’s has no expiration date.

Rent Control and the Decision to Buy

Oregon’s rent control law creates an interesting dynamic for renters deciding whether to buy. With rent increases capped at 7% + CPI (roughly 10% max), long-term renters have more predictability than renters in states without caps. But that protection doesn’t eliminate the financial case for buying.

Consider this comparison for a Portland renter paying $1,475/month:

Even with rent control, rising rents eventually exceed a fixed mortgage payment. The crossover point typically occurs between years 8 and 12 in Oregon’s current market. Use our rent vs. buy calculator to model your specific situation, and check the rent affordability calculator to see how much of your income currently goes to housing.

If buying seems right, start with our mortgage calculator to estimate monthly payments, then explore first-time buyer programs through OHCS that can reduce your down payment requirements.

Compare With Other States

Considering other markets? Here’s how other states compare:

• California Rent Control Laws: AB 1482 and What Tenants Need to Know
• New York Rent Stabilization Explained: Tenant Rights and Rules for 2026
• Military Base Housing in Kansas: Fort Riley and Fort Leavenworth Guide for 2026

Frequently Asked Questions

Can my landlord raise rent more than 10% if I’ve been paying below-market rent?

No. The 10% cap (7% + CPI, max 10%) applies regardless of how far below market your current rent is. If your rent is $1,200/month and market rate is $1,800/month, the landlord can only raise it to $1,320/month (10%) per year. At that pace, it would take several years to reach market rate. This is one of the intended effects of rent control — it prevents sudden price shocks for existing tenants.

Does the rent cap apply to single-family home rentals?

Yes, SB 608 applies to all rental housing statewide, including single-family homes, unless the building is less than 15 years old. If you’re renting a house that was built more than 15 years ago, your landlord must comply with the rent cap and no-cause eviction restrictions.

What happens if my landlord violates SB 608?

Tenants can file a complaint with the Oregon Bureau of Labor and Industries (BOLI) or pursue a private lawsuit. Violations can result in actual damages, statutory damages of three months’ rent, and recovery of attorney fees. The law is tenant-enforceable, meaning you don’t need a government agency to act on your behalf — you can take your landlord to court directly.

Does rent control apply to mobile home parks?

Mobile home park space rents are covered by SB 608. Additionally, Oregon has separate mobile home park tenant protections under ORS Chapter 90 that address space rent increases, closure notifications (180 days), and relocation assistance. Mobile home park residents often have stronger protections than apartment tenants because they own their homes and rent only the land beneath them.

Will Oregon’s rent control be strengthened or weakened?

As of 2026, there are active proposals in the Oregon Legislature to both strengthen and weaken SB 608. Tenant advocates push for tighter caps (removing the CPI component, reducing to 5% + CPI), while landlord groups advocate for broader exemptions and higher caps. The 10% statutory maximum, added after the 14.6% spike in 2023, appears durable politically. Major changes are possible but would require significant shifts in the legislative makeup — Oregon’s current Democratic majority generally supports maintaining or strengthening tenant protections.