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 occupancy. The 2026 cap is published annually by the state. Units whose first certificate of occupancy was issued less than 15 years before the rent-increase notice are exempt from the cap, and so is regulated affordable housing when the change meets program conditions. An increase above the cap costs three months' rent plus actual 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

For tenancies covered by ORS 90.323, SB 608 caps annual rent increases at a formula the state publishes each year: 7% plus CPI, with a hard maximum of 10% (ORS 90.324(1)(b)) — CPI being the September annual 12-month average change in the Consumer Price Index for All Urban Consumers, West Region (ORS 90.324(4)). Manufactured dwelling park spaces follow their own cap. The Oregon Department of Administrative Services publishes the percentage for the following calendar year no later than September 30, in a press release and on its website (ORS 90.324(2)–(3)).

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

One increase per 12-month period. In any tenancy other than week-to-week, you can raise rent no more than once in any 12-month period.

Cap applies during the tenancy. The cap limits any increase during a tenancy other than week-to-week. If you end a tenancy in its first year with a 30-day no-cause notice under ORS 90.427(3) or (4), the next tenancy's rent may not exceed what you could have charged the terminated tenancy.

Notice requirement. Outside week-to-week tenancies (7 days' notice), rent cannot rise during the first year. After that, written notice must be given at least 90 days before the increase takes effect. The exemptions below lift only the percentage cap and the next-tenancy limit (ORS 90.323(5) exempts a landlord from (2)(d) and (4) only), so an exempt unit still needs the 90-day notice. It must state the amount of the increase, the new rent and the effective date, plus the facts supporting the exemption for an increase above the cap.

Which units are exempt

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

New construction exemption — 15 years. The cap does not apply when the unit's first certificate of occupancy was issued less than 15 years before the date of the rent-increase notice. Measure from the notice date, not the calendar year.

Regulated affordable housing. A unit regulated or certified as affordable housing by a federal, state or local government is exempt from the cap only when the rent change does not increase the tenant's portion of the rent, or is required by program eligibility requirements or by a change in the tenant's income.

Owner-occupied buildings. ORS 90.323 has no owner-occupancy exemption from the rent cap; its only exemptions from the cap are the 15-year new-construction rule and qualifying regulated affordable housing. (Separately, the section does not apply at all to tenancies governed by ORS 90.505 to 90.850, the manufactured dwelling and floating home rules.)

A new tenancy's first rent. ORS 90.323 limits increases during a tenancy; it sets no limit on the first rent of a new tenancy, with one exception: if you ended the prior tenancy in its first year with a 30-day no-cause notice under ORS 90.427(3) or (4), the next tenancy's rent may not exceed what you could have charged the terminated tenancy (ORS 90.323(4)). The new tenancy then follows the same rules from its start: no increase during its first year, then at most one capped increase in any 12 months.

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.

The first year of occupancy. ORS 90.427 counts the first year of occupancy — any period in which any of the tenants has lived in the unit for one year or less (ORS 90.427(1)(a)). During it, you can end a month-to-month tenancy without cause on 30 days' written notice; a fixed term that ends within the first year, on 30 days' written notice before its end date or before the date in the notice, whichever is later (ORS 90.427(3)(b), (4)(b)).

After the first year. A month-to-month tenancy can then be ended only for a tenant cause (non-payment, violations and the other grounds listed in ORS 90.427(3)(c)(A)) or for a qualifying landlord reason. A fixed term ending after the first year becomes month-to-month at its end unless you and the tenant agree to a new term, the tenant gives notice, or you have a qualifying reason (ORS 90.427(4)(c)). The qualifying landlord reasons, each on at least 90 days' written notice that states the reason and the supporting facts (ORS 90.427(5)(a), (6)(a)(A)) — except the accepted-offer reason, which can use 60 days as described below (ORS 90.427(5)(b)):

• Owner or immediate-family move-in as a primary residence, when you don't own a comparable unit in the same building available at the time of the notice.
• An accepted offer from a buyer who intends in good faith to live in the unit as their primary residence, with written evidence of the offer provided with the notice. For this reason only, the notice can be 60 days instead of 90 if, at the time of the notice, you also pay the tenant an amount equal to one month's rent, in addition to any relocation payment owed under ORS 90.427(6)(a)(B) (ORS 90.427(5)(b)).
• Repairs or renovations within a reasonable time, when the unit is unsafe or unfit for occupancy, or will be during the work.
• Demolition, or conversion of the unit to a non-residential use, within a reasonable time.

Relocation payment. When you end a tenancy for one of those reasons, you must pay the tenant an amount equal to one month's periodic rent at the time you deliver the notice (ORS 90.427(6)(a)(B)). Landlords with an ownership interest in four or fewer residential dwelling units are exempt from that payment (ORS 90.427(6)(b)). Some cities, Portland and Eugene among them, add their own relocation rules — check the local ordinance too.

Small owner-occupied properties. If the unit is in the same building or on the same property as your own primary residence and there are no more than two units, ORS 90.427(8) lets you end a month-to-month tenancy after the first year without cause on 60 days' written notice (30 days for an accepted offer from a buyer who will live there).

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 the tenant's actual damages. ORS 90.323 itself does not mention attorney's fees; ask counsel whether fee-shifting rules elsewhere in ORS chapter 90 apply.

Improper termination. A landlord who ends a tenancy in violation of ORS 90.427(5), (6) or (7) — no qualifying reason, too little notice, or no relocation payment — is liable to the tenant for three months' rent plus actual damages, and the tenant has a defense to the landlord's action for possession (ORS 90.427(9)(a)). The tenant must bring the claim within one year of when they knew or should have known of the violation (ORS 90.427(9)(b)).

More than one tenancy, more than one claim. ORS 90.323(6) and 90.427(9) make the landlord liable to the tenant of the tenancy concerned, so a landlord who evades the cap or mis-applies an exemption across several units can face a separate claim on each of those tenancies. How the remedy is shared between co-tenants on one lease is a question for counsel.

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 figure the Department of Administrative Services published 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 the tenancy is past its first year and that rent has not been increased in the prior 12 months. Deliver written notice at least 90 days before the effective date.
4. Draft the notice. Written, dated, signed. State the amount of the increase, the new rent and the effective date (and, for an increase above the cap, the facts supporting the exemption). 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 published figure.
• Second increase within 12 months. Not allowed in a tenancy other than week-to-week, 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 building first certified in 2014 stays exempt only for notices dated less than 15 years after that certificate (sometime in 2029); a 2010 building is covered.
• Skipping the relocation payment when ending a tenancy for a qualifying landlord reason. Only landlords with an ownership interest in four or fewer residential dwelling units subject to ORS chapter 90 are exempt (ORS 90.427(6)(b)) — count every such unit you hold an interest in, not just this property.
• Treating month-to-month as no-cause-terminable forever. After the first year of occupancy, ending a month-to-month tenancy needs a tenant cause or a qualifying landlord reason, unless the small owner-occupied rule of ORS 90.427(8) applies.

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 percentage for the following year no later than September 30. Confirm the current published number before drafting any increase notice.

Does the cap apply when a new tenant moves in? Generally no. The cap limits increases during a tenancy, so it does not set the starting rent when a unit turns over — unless you ended the prior tenancy in its first year with a 30-day no-cause notice under ORS 90.427(3) or (4), in which case the new rent may not exceed what you could have charged the terminated tenancy. The new tenancy then follows the same rules: no increase in its first year, then at most one capped increase in any 12 months.

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 when you end the tenancy for a qualifying landlord reason under ORS 90.427(5): owner or family move-in, a sale to a buyer who will live there, repairs on an unsafe or unfit unit, or demolition or conversion. First-year 30-day terminations and terminations for tenant cause (non-payment, lease violations) don't go through that subsection. Landlords with an ownership interest in four or fewer residential dwelling units are exempt from the payment.

What if a tenant claims my increase exceeded the cap? If the increase exceeded the cap and no exemption applied, the tenant can recover three months' rent plus actual damages. Calculate your increases against the current published figure every cycle, document the calculation, and keep the source of the figure 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.