The maximum rent increase that will be allowed in Oregon in 2024 will be 10%. And it could have been higher if not for a new law that was passed earlier this year.
The Oregon Department of Administrative Services announced the 2024 rent increase cap on Tuesday.
The maximum allowable increase in rent is 7% plus the Consumer Price Index (CPI) — a measure of inflation — for all urban consumers in the west region as calculated by the Bureau of Labor Statistics.
This year, the CPI is 5.6%. Add that to the 7% number and that means the maximum allowable increase could have been 12.6%.
But, under Senate Bill 611 passed earlier this year, the maximum allowable increase is the 7%-plus-CPI combination or 10% — whichever is lower.
That means someone paying $2,000 per month in rent in 2023 could pay $2,200 per month in 2024, if the landlord chooses to go with the maximum increase.
The law also says the landlord may not increase the rent during the first year of tenancy. The landlord must also give 90 days notice before increasing rent after the first year of tenancy and can only increase the rent once in a 12-month period.
As inflation spiked in 2022, the maximum rent increase was 14.6% in 2023. SB 611 which took effect on July 6. Therefore, increases issued after that date were bound by the new 10% cap.
The maximum annual increase has been above 10% six times since 2000, according to state data. It’s been at 9% or above in 17 of the previous 24 years.