Rent Control 2026: States and Cities Capping Rent Increases

TL;DR: As of 2026, five states have statewide rent increase caps — California (5% plus local CPI, max 10%), Oregon (7% plus CPI), Washington (7% plus CPI, max 10%), New Jersey (varies by city ordinance), and New York (statewide protections plus NYC's separate Rent Guidelines Board). Most single-family homes owned by individual landlords are exempt, but multi-unit buildings usually aren't. Check your state and city separately — rent control is almost never one uniform rule.

_Last reviewed: August 2026 · 8 min read_

If you own rental property in more than one city, you've probably noticed the rent increase rules aren't the same from one address to the next. That's because rent control in the US is a patchwork of state laws, city ordinances, and exemptions that stack on top of each other. This post breaks down which places actually cap rent increases in 2026, by how much, and what's exempt.

Okoniq Property Hub helps owner-operators log lease dates and rent increase history per unit, so you can see at a glance whether an upcoming renewal is bumping against a legal cap.

Which states have statewide rent control laws in 2026?

Five states currently set a statewide ceiling on annual rent increases: California, Oregon, Washington, New Jersey, and New York. Each does it differently.

California's AB 1482 (the Tenant Protection Act) caps increases at 5% plus the local Consumer Price Index, with a hard ceiling of 10% total, whichever is lower. It applies to most buildings older than 15 years and excludes single-family homes if the owner is an individual (not a corporation) and gives proper notice. Oregon's SB 608, amended in 2023, caps increases at 7% plus CPI, adjusted every year by the state's Department of Administrative Services — for 2026 that works out to roughly 10%. Washington passed HB 1220 in 2023, capping increases at 7% plus CPI with a 10% ceiling, effective for leases signed after mid-2024.

New Jersey doesn't have a statewide cap, but around 100 municipalities including Jersey City, Newark, and Fort Lee run their own rent control ordinances, typically tied to CPI with caps between 2.5% and 6%. New York's statewide Housing Stability and Tenant Protection Act (2019) mostly restricts landlord practices around lease renewals and security deposits, but the real caps live at the city level.

Which cities cap rent increases even without a statewide law?

Several major cities run their own rent control programs independent of state law, and the caps can be tighter than anything at the state level. New York City's Rent Guidelines Board sets annual increases for roughly one million rent-stabilized units — for 2025-2026 leases that's 2.75% on one-year renewals and 5.25% on two-year renewals. Los Angeles runs a Rent Stabilization Ordinance covering buildings built before October 1978, with annual caps generally between 4% and 6% depending on CPI. San Francisco's rent ordinance limits increases to about 60% of CPI, which has landed around 2-3% most years and applies to buildings built before June 1979.

Washington, D.C.'s Rent Control Act caps increases at CPI plus 2% for most tenants, but limits it to CPI alone (often under 3%) for elderly or disabled tenants. St. Paul, Minnesota passed a 3% cap by ballot measure in 2021, then amended it in 2022 to exempt new construction and allow higher increases tied to vacancy. If you own in any of these cities, the city ordinance overrides the state default, so always check local law first.

What properties are usually exempt from rent control?

Single-family homes owned by individual landlords are the most common exemption, along with new construction and small owner-occupied buildings. Most caps target multi-unit apartment buildings, not the kind of single-door rentals many owner-operators hold.

| Jurisdiction | Cap | Common Exemptions | |---|---|---| | California (AB 1482) | 5% + CPI, max 10% | Single-family homes (individual owner), buildings under 15 years old | | Oregon (SB 608) | 7% + CPI | Buildings under 15 years old, owner-occupied duplexes | | Washington (HB 1220) | 7% + CPI, max 10% | New construction (12-year exemption), certain affordable housing | | NYC (Rent Guidelines Board) | Set annually, 2.75-5.25% for 2025-26 | Units built after 1974, condos/co-ops |

Even within an exempt category, you often have to give written notice claiming the exemption at lease signing — skip that paperwork and you can lose the exemption entirely. If you're not sure which bucket a property falls into, your state's housing agency website usually has a lookup tool by address.

How does rent control change the math on repairs and upgrades?

Rent control limits how fast you can recover rising costs, which pushes some landlords to defer maintenance they'd otherwise handle right away. When a roof is aging faster than it should or a foundation needs the checks most owners skip every spring, a capped rent roll means less room to fund the fix out of current cash flow.

Some jurisdictions build in relief for this. California and a handful of California cities allow "capital improvement pass-throughs" — a temporary rent surcharge to recover the cost of a new roof, seismic retrofit, or major system replacement, filed through a formal petition. New York City has a similar Major Capital Improvement (MCI) program, though it's been scaled back since 2019 reforms. If your property is rent-controlled, it's worth budgeting for these smaller, cheaper interventions between big-ticket repairs — things like the security upgrades under $100 that actually work — since they don't require a rent petition and keep the unit in decent shape while you save for the larger job.

What happens if a landlord raises rent above the legal cap?

Landlords who exceed the cap typically face fines, forced rent rollbacks, and in some cities treble damages owed to the tenant. New York City tenants can file a complaint with the Division of Housing and Community Renewal, which can order the landlord to refund the overcharge plus interest going back up to six years, and willful overcharges get tripled. California's AB 1482 lets tenants sue for actual damages plus attorney's fees, and repeated violations can trigger additional civil penalties from the state Attorney General's office. Ignorance of the cap isn't a defense in any of these jurisdictions, so it's worth checking the current percentage before every renewal notice goes out, not just when you signed the original lease.

FAQ

Is rent control the same as rent stabilization?

Not exactly. Rent control usually means a strict, low cap that rarely changes, while rent stabilization (used in places like NYC and Los Angeles) ties the cap to an annually adjusted formula, usually linked to CPI, and often allows for vacancy or capital improvement adjustments that stricter rent control doesn't.

Can landlords reset the rent to market rate when a tenant moves out?

In most rent-stabilized cities, yes — this is called vacancy decontrol, and it lets you set a new market rent for the next tenant. A few cities, including St. Paul under its original 2021 ordinance, tried to eliminate this, but most jurisdictions still allow it.

Does rent control apply to Section 8 or other subsidized units?

Rent control caps still apply to the tenant-paid portion in most cases, but subsidized units are also governed by HUD payment standards, which can create a separate ceiling. Check both rules before setting a new rent for a voucher tenant.

How much can I legally raise rent in California in 2026?

Up to 5% plus the regional CPI, capped at 10% total, for units covered by AB 1482. The exact CPI figure varies by metro area and is published annually by the California Department of Industrial Relations, so confirm the current number for your county before sending a notice.

Are more states expected to pass rent control laws soon?

Several states including Colorado, Maryland, and Illinois have introduced statewide rent cap bills in recent sessions, though none had passed as of early 2026. It's worth tracking your state legislature's housing committee if you own in a state without a current cap, since these bills tend to move fast once one passes in a neighboring state.

This is educational information, not legal advice. Consult your state housing agency or a local landlord-tenant attorney before setting rent increases, since caps and exemptions change by city and can be updated mid-year.