Oregon releases maximum rental increase for 2025

Oregon has set a maximum rental increase of 10% for the year 2025, as confirmed by the Oregon Department of Administrative Services (DAS). This decision follows the enactment of Senate Bill 611, signed by Gov. Tina Kotek in July 2023, which establishes a state-mandated cap on residential rent increases. The 10% limit applies specifically to rental units that are 15 years and older, reflecting ongoing concerns about housing affordability amidst rising inflation. The calculation for the allowable rent increase is based on a formula that incorporates a base increase of 7% plus adjustments according to the Consumer Price Index (CPI), with 10% being the absolute ceiling.

Since the law was introduced in 2019, maximum allowable increases have generally ranged from 9% to 10%, except for a spike in the first half of 2023 when the cap reached 14. 6%. The DAS is required to publish the maximum allowable rent increase by September 30 each year, ensuring transparency for both landlords and tenants. This legislative move is seen as a crucial step in controlling the escalating cost of living in Oregon, particularly in the rental market. The announcement is expected to provide some relief to renters who have faced significant financial pressures in recent years.