Raising rent to market without breaking a rent cap

Greymill AcademyUS5 min readReviewed Oct 202621 primary sourcesUK version

The short answer

In capped states and cities the legal maximum, not the market, sets this year's increase, so check the cap and the notice period before you price.

The takeaway. Price from comparable leases, then apply any state or local cap and the required notice period before sending an increase; if a cap applies, it wins.

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Written for landlords, property managers and short-term rental hosts across the US, with state detail for California, Texas, New York and Florida.

The short version

  1. Find the market rent from real comps.Use recent leases and listings for the same bedroom count and condition in the neighborhood.
  2. Look up any state or local cap.The state, the city, the building's age and who owns it decide whether one applies. If a cap applies, it wins.
  3. Serve the notice your state requires.Notice varies by state, sometimes by the size of the rise and how long the tenant has stayed. First check for a recent repair complaint.

Your comps say the unit is worth more. Whether you can charge it this year depends on the state, the city, the unit's age and who owns it. Get the order right: market first, then the legal ceiling, then the notice.

  1. Find the market rent.Use comparable listings and recent leases for the same bedroom count and condition in the neighborhood.
  2. Check for a cap.California, Oregon, Washington State, New York stabilized units and Good Cause, and local ordinances can all limit the increase.
  3. Check any voucher.Rent above a voucher payment standard needs the housing authority's rent-reasonableness approval.
  4. Check for a recent complaint.A rent increase soon after a tenant's repair complaint or code report can be retaliation. California presumes it within 180 days (Civil Code 1942.5) and Texas bars it within 6 months (Property Code 92.331). Document the legitimate reason before you send the notice. As of Oct 2026.
  5. Serve the right notice.The notice period depends on the state and sometimes on the size of the increase and how long the tenant has been there.
The rule

California (AB 1482)

Increases over any 12 months are limited to 5% plus regional CPI, never more than 10%. Exempt: units with a certificate of occupancy issued in the last 15 years, a single-family home or condo not owned by a REIT, a corporation or an LLC with a corporate member, if the lease carries the statutory exemption notice, and an owner-occupied duplex. Stricter local ordinances prevail. Notice: 30 days for an increase of 10% or less, 90 days for more. As of Oct 2026.

Civil Code 1947.12; Civil Code 827

Oregon (ORS 90.323) generally bars an increase in the first year, then needs 90 days' notice and caps covered tenancies at the lower of 7% plus CPI or 10%: 9.5% for 2026 and 10% for 2027. Washington State uses the same formula, first-year bar and generally 90 days' notice: 9.683% for 2026 and 10% for 2027. Both states have exemptions, including some newer dwellings, and local rules can be stricter. As of Oct 2026.

The rule

New York

Under the Good Cause Eviction Law (New York City and municipalities that opt in), an increase above the lesser of CPI plus 5% or 10% is presumptively unreasonable; exemptions include small landlords owning no more than 10 units, buildings with a certificate of occupancy after 2009, and rent-regulated units. Notice of an increase of 5% or more: 30 days under a year's occupancy, 60 days for 1 to 2 years, 90 days for 2 years or more. As of Oct 2026.

RPL Article 6-A; RPL 226-c

The rule

Texas and Florida

Texas generally bars cities from regulating rent, except a governor-approved temporary ordinance responding to a disaster-caused housing emergency. Florida preempts local regulation of residential tenancies to the state. As of Oct 2026.

Texas Local Government Code 214.902; Florida Statutes 83.425

A covered Washington State tenancy in 2026 (indicative)
Current rent$2,000
Maximum 2026 increase at 9.683%$193.66
Highest rent allowed in 2026$2,193.66

Generally with 90 days' notice. In California at the 10% ceiling, $2,200 becomes at most $2,420, less if 5% plus regional CPI is lower.

AvoidFor example, the owner of a 1985 Sacramento fourplex moves a $2,200 tenant straight to the $2,600 market rent, or ends the tenancy to re-rent at market.
Do this insteadRaising by no more than 5% plus regional CPI and never above 10% ($2,420 in that example), with the right notice, and keeping the tenant.

AB 1482 covers the building because its certificate of occupancy was issued more than 15 years ago and a fourplex is not an exempt single-family home, condo or owner-occupied duplex, and wanting market rent is not one of the just causes for ending a tenancy after 12 months.

Asked in Greymill

Example question and answer from Cash & Profit
You
Got a 1985 fourplex in Sacramento. One tenant pays $2,200 and has been there three years. Comps say $2,600. Can I bump them to market next month? Or end their tenancy and re-rent?
Cash & Profit
No to both. The most you can charge this year is $2,420, with 30 days' notice.

Why: your fourplex got its certificate of occupancy more than 15 years ago, so California's AB 1482 rent cap covers it. Rises over any 12 months are limited to 5% plus regional CPI (local inflation), never more than 10% (As of Oct 2026).

Highest rent: $2,200 + 10% ($220) = $2,420
Lower if: 5% plus your regional CPI comes to under 10%, or a stricter local ordinance applies
Notice: 30 days for a rise of 10% or less (As of Oct 2026)

Ending the tenancy won't work either. After 12 months, wanting market rent is not a just cause (a lawful reason) to end it (As of Oct 2026).

Watch for: a recent repair complaint. California presumes a rise within 180 days of one is retaliation (As of Oct 2026). If so, write down your legitimate reason first.

Once you have the CPI figure, LEO can draft the notice.

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Your question

I run a property management business in [state], in the US. I want to raise rent on [number] units in [city]. For each one: current rent [$], comparable market rent [$], year built, owner type [natural person, LLC, corporation], tenant move-in date, and any voucher. Tell me which units fall under a state or local cap, the maximum increase and notice period for each, and the date each notice must go out.

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Sources

The primary sources behind this lesson, checked Oct 2026.

  1. announcement (Pricing, fees and margins)
  2. 1947.12(a)(1) (Pricing, fees and margins)
  3. 982.507 (Pricing, fees and margins)
  4. Civ. Code 1941.1, 1942.1; RPL 235-b(2); Prop. Code 92.052, 92.006(e) and (f); Fla. Stat. 83.51(1), (2) (Landlord-tenant basics and statewide rent caps)
  5. Civ. Code 1942.5; Prop. Code 92.331; Fla. Stat. 83.64 (Landlord-tenant basics and statewide rent caps)
  6. Rent Stabilization percentages for 2026 and 2027; ORS 90.323 notice, first-year and exemption rules (Landlord-tenant basics and statewide rent caps)
  7. Annual rent increase limit; RCW 59.18.700(1) formula and first-year bar; RCW 59.18.140 notice (Landlord-tenant basics and statewide rent caps)
  8. Texas Local Government Code section 214.902(a) and (b) (Landlord-tenant basics and statewide rent caps)
  9. 1946.2(a), (b), (d) (California: AB 1482, deposits and unlawful detainer)
  10. California Civil Code section 1950.5(c)(5)(A) to (C) (California: AB 1482, deposits and unlawful detainer)
  11. 1161(2), (3) (California: AB 1482, deposits and unlawful detainer)
  12. 827(b) (California: AB 1482, deposits and unlawful detainer)
  13. 1946.1(b), (c) (California: AB 1482, deposits and unlawful detainer)
  14. 7-108(1-a) (New york: hstpa, good cause and new york city rules)
  15. 7-103(2-a) (New york: hstpa, good cause and new york city rules)
  16. 238-a(1), (2) (New york: hstpa, good cause and new york city rules)
  17. 711(2) (New york: hstpa, good cause and new york city rules)
  18. 235-e(d) (New york: hstpa, good cause and new york city rules)
  19. 226-c (New york: hstpa, good cause and new york city rules)
  20. Rule 61J2-14 (Hard cases: rent increases, deposits, late fees and screening)
  21. 15 U.S.C. 9058(c)(1); Property Code 24.005(c-1) (SB 38 s4) (Hard cases: rent increases, deposits, late fees and screening)

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