California Rent Increase Limits and Exemptions: Formula and Notice

In California, the rent increase limit for most rental units is 5% plus the regional Consumer Price Index change, with a hard ceiling of 10%, in any 12-month period. That cap comes from the Tenant Protection Act of 2019, codified at Civil Code Section 1947.12, and it stays in effect through the end of 2029.1California Legislative Information. California Code CIV 1947.12 Some properties are exempt, some cities cap rent lower, and tenants who get overcharged can sue for the full overcharge plus attorney’s fees.

The Formula and What It Comes Out To

The cap is 5% plus the percentage change in the Consumer Price Index for the metropolitan region where the rental sits, or 10%, whichever is lower.2California Legislative Information. California Code CIV 1947-12 The increase is measured against the lowest rent you were charged at any point during the prior 12 months.

For August 2025 through July 2026, the CPI change for the Los Angeles–Long Beach–Anaheim region is 3.0%, which puts the maximum allowable increase at 8.0% in that area. In the Riverside–San Bernardino region, CPI came in at 2.5%, so the cap there is 7.5%. If 5% plus CPI ever exceeds 10%, the ceiling locks at 10% no matter how high inflation runs.

Discounts and move-in concessions don’t lower the baseline. If your landlord gave you a temporary discount, they can’t treat the discounted figure as the “rent” and then increase from there. The lease has to list gross rent and any owner-offered discount separately.2California Legislative Information. California Code CIV 1947-12

How Often Rent Can Go Up in a Year

A landlord can raise rent no more than twice in any 12-month period, and both increases combined still have to fit under the percentage cap.2California Legislative Information. California Code CIV 1947-12 A 3% bump in February and a 4% bump in August would be legal — that’s 7% total, two increases, under the cap. A third increase inside that same 12-month window violates the law regardless of size.

The 12 months run from the tenant’s last increase, not the calendar year. If your last increase took effect in March, the clock runs through the following February.

Notice Your Landlord Has to Give You

A rent increase isn’t enforceable until the landlord serves proper written notice under Civil Code Section 827. The lead time depends on the size of the increase:3California Legislative Information. California Code CIV 827

  • 30 days’ notice if the increase is 10% or less of the rent charged at any point in the prior 12 months, including any earlier increases in that window.
  • 90 days’ notice if the increase is more than 10%. In practice this only applies to exempt properties, since covered rentals can’t go above 10% anyway.

Delivery has to create proof of service: personal delivery, certified or registered mail, or leaving the notice with a responsible adult at the residence and mailing a copy. Emails and text messages generally don’t qualify. The notice period starts when the document is properly served, not when the landlord first mentions the increase.

If the notice is defective — wrong delivery, too little lead time, or never served at all — the increase isn’t enforceable, and you can keep paying your current rent until a valid notice arrives.

Rentals That Are Exempt From the Cap

Section 1947.12(d) exempts several categories of housing from the statewide cap:2California Legislative Information. California Code CIV 1947-12

  • Housing that received its certificate of occupancy within the last 15 years. This is a rolling window, so a 2011 building becomes covered in 2026.
  • Single-family homes and condos, but only if the owner is not a REIT, a corporation, or an LLC with at least one corporate member — and only if the owner delivers a specific written notice to the tenant claiming the exemption.
  • Owner-occupied duplexes where the owner lives in one unit as their primary residence from the start of the tenancy. Neither unit can be an accessory dwelling unit.
  • Deed-restricted affordable housing for low- or moderate-income tenants.
  • Dormitories owned and operated by schools or colleges.
  • Rentals already covered by a stricter local rent control ordinance — in that case the local rule applies.

The single-family and condo exemption isn’t automatic. The landlord has to give you a written notice stating that the property is exempt from both the rent cap under Section 1947.12 and the just cause eviction rules under Section 1946.2, and that the owner is not a corporation, REIT, or qualifying LLC.1California Legislative Information. California Code CIV 1947.12 If you never received that notice, the exemption may not apply, and you may be covered by the cap even in a single-family rental.

When a Local Rent Control Ordinance Applies Instead

Cities including San Francisco, Los Angeles, Oakland, and Berkeley have their own rent boards that set annual allowable increases, often well below the state cap. When the local ordinance is stricter, the local number is what your landlord has to follow.

The Costa-Hawkins Rental Housing Act limits what cities can do. Local rent control can’t reach housing built after February 1, 1995, can’t cover single-family homes or condos, and can’t stop a landlord from resetting rent to market when a tenant moves out.4California Legislative Information. California Civil Code 1954.50 – Costa-Hawkins Rental Housing Act That leaves a real gap: buildings finished between 1995 and 15 years ago are too new for local rent control in many cities but old enough to fall under the state cap. If you’re in a rent-control city, check both. Your city’s rent board or housing department can tell you which set of rules governs your unit.

What to Do About an Illegal Rent Increase

If your landlord charges above the legal maximum, you can sue in civil court and recover the full amount of the overcharge. The court can order the overcharging to stop and can award reasonable attorney’s fees and costs.1California Legislative Information. California Code CIV 1947.12 If the landlord acted willfully or with fraud, damages can be tripled.

The California Attorney General, along with local city attorneys and county counsel, can also enforce the law and seek injunctions on behalf of tenants. Courts presume that violations cause irreparable harm, which makes it easier to get an emergency court order stopping an illegal increase.1California Legislative Information. California Code CIV 1947.12

You have three years from the overcharge to file. The California Department of Justice recommends getting legal help promptly; free and low-cost aid is available through LawHelpCA.org for tenants who can’t afford a lawyer.5California Department of Justice. Know Your Rights as a California Tenant

One more thing worth knowing: the rent cap is paired with just cause eviction protections under Civil Code Section 1946.2, which stop a landlord from simply refusing to renew a covered tenancy of 12 months or more as a workaround. That means pushing back on an illegal increase doesn’t leave you exposed to an easy retaliatory non-renewal.6California Legislative Information. California Code CIV 1946-2

If You Have a Section 8 Voucher

The statewide cap applies to units rented by Section 8 Housing Choice Voucher holders.5California Department of Justice. Know Your Rights as a California Tenant The 5%-plus-CPI formula and the 10% ceiling bind the landlord the same way. Your housing authority may add its own rules on top, but the state cap is a floor of protection that applies either way.