This is one of the topics covered in the reference on California landlord-tenant law and the statewide rent cap. If you rent a home or apartment in California and want to know the ceiling on a rent increase, this article explains the cap, how it is calculated, which units are exempt, and the notice a landlord must give first.
The statewide rent cap under AB 1482
The Tenant Protection Act of 2019, enacted as Assembly Bill 1482, limits how much rent can go up on most residential units in California. Under Cal. Civ. Code § 1947.12, a landlord cannot raise the gross rental rate more than 5% plus the percentage change in the cost of living over any 12-month period, and the increase can never be more than 10% of the lowest rent charged in the prior 12 months.
The “percentage change in the cost of living” is the regional Consumer Price Index for the area where the unit sits. Because CPI varies by region and year, the exact ceiling changes annually. The California Attorney General’s guidance on landlord-tenant disputes summarizes the 5%-plus-CPI cap and the 10% hard limit for tenants trying to check whether an increase is lawful.
The statute also limits how often rent can rise. A landlord may not increase the rent more than twice in any 12-month period, and the two increases together still cannot exceed the annual cap. The Tenant Protection Act was extended by later legislation and, as of 2026, remains in effect through January 1, 2030.
How to calculate the maximum increase
The cap has two moving parts: the flat 5% and the regional CPI figure. You add them together, then check the result against the 10% ceiling.
Find the current rent
Start from the lowest gross rent charged in the previous 12 months. The gross rental rate is the base rent, not including separately metered utilities or optional service charges. This is the number the percentage cap applies to under
Cal. Civ. Code § 1947.12.Add 5% plus the regional CPI
The maximum percentage is 5% plus the change in the consumer price index for the region where the rental sits. The applicable CPI figure is published for each metropolitan area and updated annually, so the same 5% base produces a different ceiling in Los Angeles than in the San Francisco Bay Area.
Apply the 10% cap
If 5% plus CPI comes out above 10%, the increase is capped at 10%. In a low-inflation year the ceiling is lower; in a high-inflation year it maxes out at 10% and goes no higher.
As an illustration, if the regional CPI change is 3%, the maximum increase is 8% (5% + 3%). If the regional CPI change is 6%, the sum would be 11%, so the 10% ceiling applies and the most rent can rise is 10%. Local rent boards and the California Department of Housing publish the current regional CPI figures each year.
Which rentals are exempt from the cap
The rent cap does not cover every rental. Several categories are exempt under Cal. Civ. Code § 1947.12, and rent on an exempt unit is not limited by the statewide formula.
- Housing built within the last 15 years. Units with a certificate of occupancy issued in the prior 15 years are exempt. This is a rolling date, so a building loses the exemption once it passes the 15-year mark.
- Most single-family homes and condominiums owned by an individual (not a corporation, a real estate investment trust, or an LLC with a corporate member), as long as the landlord gives the tenant the specific written notice of exemption the statute requires.
- Duplexes where the owner lives in one of the two units as their principal residence.
- Certain deed-restricted affordable housing and dormitories, which run on separate rules.
A unit already covered by a stricter local rent control ordinance is also outside the state formula, because the local cap controls where it is lower. If a rental is exempt from AB 1482 and has no local rent control, there is no statewide percentage limit on the increase, though the notice rules below still apply.
Notice a landlord must give before raising rent
A rent increase is not effective until the landlord delivers proper written notice. Under Cal. Civ. Code § 827, the required notice period depends on the size of the increase for a month-to-month tenancy.
- 30 days’ written notice for a rent increase of 10% or less within a 12-month period.
- 90 days’ written notice for a rent increase of more than 10% within a 12-month period.
The notice must be served in a manner the statute allows, such as personal delivery or mail with the added days that mailed service requires. A fixed-term lease sets the rent for its term; a landlord generally cannot raise the rent mid-lease unless the lease itself allows it.
When local rent control sets a lower limit
Many California cities have their own rent control ordinances that cap increases more tightly than the state formula and add tenant protections the state law does not. Where a local ordinance is stricter, it controls.
Cities including Los Angeles, San Francisco, Oakland, San Jose, and Berkeley run local rent stabilization programs, each with its own allowable annual increase, covered-unit definitions, and registration rules. Some of these caps are well below the state ceiling in a given year. Because coverage and the annual allowable increase are set locally and change yearly, the current figure comes from the city or county rent board where the unit sits.
Local ordinances often pair a lower rent cap with “just cause” eviction protections. The Tenant Protection Act adds its own just-cause requirement statewide: for a tenant who has lived in a covered unit for 12 months or more, a landlord generally needs a stated at-fault or no-fault reason to end the tenancy, and certain no-fault terminations require a relocation payment or rent waiver equal to one month’s rent, under Cal. Civ. Code § 1946.2.
What a tenant can do about an unlawful increase
An increase above the legal cap, or one imposed without the required notice, is not enforceable to the extent it exceeds what the law allows. A tenant who receives an increase they believe is too high can compare the amount against the 5%-plus-CPI formula and confirm whether the unit is covered.
The written notice ending or changing a tenancy is also the document a court examines first in any later dispute, which is why the California Courts self-help guidance on notices explains how a notice must be delivered and what it must contain. A notice that violates the rules can be challenged if the landlord later files an eviction case. Local rent boards handle complaints about overcharges in cities with rent control, and the California Attorney General’s landlord-tenant resource lists consumer complaint channels and links to legal aid for tenants who cannot resolve a dispute directly.
Frequently asked questions
How much can my landlord raise my rent in California this year?
For a unit covered by the Tenant Protection Act, the maximum is 5% plus the regional change in the consumer price index over the prior 12 months, capped at 10%, under Cal. Civ. Code § 1947.12. Because CPI is published by region and updated each year, the exact percentage depends on where the rental is and the current CPI figure for that area. A unit that is exempt or under stricter local rent control follows a different limit.
Can a landlord raise rent by 10% every year?
Only in a region where 5% plus CPI reaches 10%. The 10% figure is a ceiling, not a standard rate. In most years and most regions the 5%-plus-CPI formula produces a maximum below 10%, and the increase is limited to that lower number. A landlord may also not increase rent more than twice in a 12-month period, and the two increases together cannot exceed the annual cap.
Which rentals are not covered by the rent cap?
Housing built within the last 15 years, most single-family homes and condominiums owned by an individual who gives the required written exemption notice, owner-occupied duplexes, and certain affordable and dormitory housing are exempt under Cal. Civ. Code § 1947.12. A unit under a stricter local rent control ordinance is governed by that local cap instead of the state formula.
How much notice does a landlord have to give before raising rent?
Under Cal. Civ. Code § 827, a month-to-month tenant is entitled to 30 days’ written notice for an increase of 10% or less and 90 days’ written notice for an increase above 10%. The increase cannot take effect before the notice period ends. Rent under a fixed-term lease generally cannot be raised during the term unless the lease allows it.
Can a landlord raise the rent during a fixed-term lease?
Generally no. A fixed-term lease sets the rent for the length of the term, and a landlord cannot raise it mid-lease unless the lease contains a provision permitting an increase. Once the fixed term ends and the tenancy becomes month-to-month, the AB 1482 cap and the notice rules apply to any increase.
Does the rent cap apply if my city has its own rent control?
Where a local rent control ordinance is stricter than the state formula, the local cap controls. Cities such as Los Angeles, San Francisco, Oakland, San Jose, and Berkeley set their own annual allowable increases, which are often lower than the statewide ceiling. The current local figure comes from the city or county rent board where the unit is located.