Oregon Rent Control SB 608 in 2026: Caps and Exemptions

Oregon SB 608, in effect since 2019, caps annual rent increases statewide using a formula tied to CPI and limits no-cause lease terminations after the first year of tenancy. The 2026 cap is published annually by the state. New construction is exempt for 15 years; subsidized housing has its own rules. Get the cap, the notice, and the relocation rules right or you pay 3 months' rent in damages.

If you operate doors in Portland, Eugene, Salem, Bend, or anywhere else in Oregon, SB 608 is the rule that defines your renewal pricing. Oregon was the first state to enact statewide rent control, and the law has been refined since 2019. Here's how to operate inside it in 2026 without tripping the damages provisions.

The cap: what it actually is

SB 608 caps annual rent increases at a formula the state publishes each year: 7% plus the change in the Consumer Price Index (CPI) for the West Region, with a hard maximum of 10%. The Oregon Department of Administrative Services publishes the specific cap percentage in September of each year for the following calendar year.

The 2026 cap. Confirm the current figure from the Department of Administrative Services bulletin. The cap is recalculated annually; do not rely on a figure you remember from 2023 or 2024.

One increase per 12-month period per unit. You can raise rent only once in any 12-month rolling period on the same unit while the same tenant occupies it. A second increase within 12 months is void and exposes you to damages.

Cap applies to renewals on existing tenancies. SB 608 caps increases the existing tenant pays on renewal. It does not cap the rent you can charge a new tenant when a unit turns over. After a tenant moves out (voluntarily or for cause), you can re-rent at any market rate.

Notice requirement. A rent-increase notice on a covered unit must be in writing, delivered at least 90 days before the increase takes effect, and must state the new rent, the date it takes effect, and the percentage increase. Notices that don't meet the 90-day window or content requirements are unenforceable.

Which units are exempt

The exemptions are specific. Misclassifying a unit as exempt creates damages exposure.

New construction exemption — 15 years. A residential unit's first certificate of occupancy must be more than 15 years old before the cap applies. In 2026, that means buildings issued a certificate of occupancy in 2010 or earlier are subject to the cap; buildings from 2011 onward remain exempt until they age in.

Subsidized housing with its own rent rules. Section 8 project-based units, public housing, and other federally-regulated housing follow their own rent-setting rules. SB 608 generally does not override those federal frameworks for project-based subsidized units.

Owner-occupied buildings (limited exemption). A duplex or smaller where the owner occupies one unit as their primary residence has a limited exemption from the no-cause termination restrictions. The rent cap exemption is narrower.

Vacancy decontrol. When a unit becomes vacant — tenant moves out voluntarily, evicted for cause — you can reset the rent to any market level. The cap re-applies to subsequent increases on the new tenant.

No-cause terminations after the first year

SB 608 doesn't just cap rent. It also limits when you can terminate a tenancy without stated cause.

First year of tenancy (the "first year" rule). During the first year of a tenancy, you can terminate without cause with proper notice (commonly 30 days for month-to-month, longer for fixed-term ending). After the first year, no-cause termination is severely limited.

After the first year — qualifying landlord reasons. SB 608 enumerates the only grounds on which a landlord can terminate a fixed-term tenancy at expiration or a month-to-month tenancy without tenant fault. The typical qualifying grounds:

• Owner or family-member move-in. With required notice (commonly 90 days), and restrictions on re-renting within a defined period after move-in.
• Sale of the unit to a buyer who intends to occupy it as a primary residence. With notice and conditions.
• Substantial repairs or renovations that cannot reasonably be completed with the tenant in place. Requires permits and a documented project.
• Demolition or conversion of the unit to non-residential use. Requires permits.

Relocation assistance. For qualifying no-cause terminations under SB 608, the landlord must pay relocation assistance equal to one month's rent (with exemptions for very small landlords — generally landlords with 4 or fewer units total — and certain owner-occupied situations). The payment is due no later than the date the notice is delivered.

For-cause terminations — non-payment, lease violation, illegal activity — are separately governed under Oregon ORS Chapter 90 and the standard eviction process applies. SB 608 doesn't prevent you from evicting a tenant who breaches.

Penalties for SB 608 violations

The damages exposure is what makes SB 608 something you don't experiment with.

Excessive rent increase. A tenant whose rent was raised above the cap can recover three months' rent plus actual damages. On a $1,500/month unit, that's $4,500 plus any documented damages and likely attorney's fees.

Improper no-cause termination. A tenant terminated without a qualifying ground (or in the first-year window without proper notice) can recover three months' rent plus actual damages.

Failure to pay relocation assistance. A tenant who was entitled to relocation assistance and did not receive it can recover the assistance amount plus three months' rent plus damages.

Pattern penalties. Repeated violations or evidence of intentional non-compliance can support additional damages and attorney's fees. A landlord who tries to evade the cap by churning tenants or mis-applying exemptions invites a multi-claim action.

Operator math: what a compliant renewal looks like

A practical example for a 2026 Portland operator with a covered unit currently at $1,800/month, assuming the published 2026 cap is in the 7-10% range:

1. Confirm the 2026 cap. Pull the Department of Administrative Services bulletin for 2026. Use the published number, not a stale figure.
2. Calculate the maximum increase. Cap percentage × current rent = maximum dollar increase. Add to current rent to get the maximum new rent.
3. Confirm timing. Verify no increase has been served on this unit in the prior 12 months. Schedule the new increase no less than 90 days before the effective date.
4. Draft the notice. Written, dated, signed. State the new rent, the effective date, and the percentage increase. Deliver in a provable way.
5. Calendar the next eligible increase date. Earliest is 12 months after this increase's effective date.

Common operator mistakes

• Using last year's cap percentage. The cap is recalculated annually. Always pull the current bulletin.
• Second increase within 12 months. Void and exposes you to damages even if both increases were inside the cap individually.
• Confusing the new-construction exemption. "Built within 15 years" means certificate of occupancy date, not when you bought the building. A 2014 building remained exempt through 2029; a 2010 building is covered.
• Skipping relocation assistance when terminating without cause under a qualifying ground. The small-landlord exemption is narrow — confirm before relying on it.
• Treating month-to-month as no-cause-terminable forever. After the first year of tenancy, no-cause termination requires a qualifying ground even on month-to-month.

Quick reference

FAQ

What is the SB 608 cap for 2026? Calculated as 7% plus CPI for the West Region, capped at 10%. The Oregon Department of Administrative Services publishes the specific percentage each September for the following year. Confirm the current number from the state bulletin before drafting any increase notice.

Does the cap apply when a new tenant moves in? No. Vacancy decontrol applies — when a unit turns over, you can reset the rent to any market level. The cap re-applies to subsequent increases for the new tenant.

Is my Portland building from 2008 still exempt under the new-construction rule? The exemption runs 15 years from first certificate of occupancy. A 2008 building's exemption expired around 2023. It is now covered by the cap. A 2012 building remains exempt through approximately 2027.

Do I have to pay relocation assistance for every no-cause termination? Only for qualifying no-cause terminations after the first year of tenancy. Small landlords (commonly 4 or fewer units total) have a narrow exemption. For-cause terminations (non-pay, lease breach) do not trigger relocation assistance.

What if a tenant claims my increase exceeded the cap? The tenant can recover three months' rent plus actual damages. Calculate your increases against the current bulletin every cycle, document the calculation, and keep the bulletin reference in the file with the notice.

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This isn't legal advice. Consult an attorney licensed in Oregon for specifics in your county.