Oregon landlords will be permitted to raise rent by as much as 10% in 2027 for most tenancies covered by the state’s rent stabilization law, the Department of Administrative Services reported Monday. The annual ceiling rises from 9.5% in 2026, placing another potential increase before households already budgeting for housing, transportation, utilities and food.
The new limit translates into substantial amounts at current rent levels. A tenant paying $1,900 a month could receive an increase of up to $190, bringing the monthly payment to $2,090. If the higher rent remains in place for a full year, that household would pay $2,280 more than it does at the current rate. On a $2,000 rental, the maximum increase would be $200 a month, or $2,400 over 12 months.
Those figures describe what the law permits for covered tenancies. Monday’s announcement does not order a statewide rent increase, and landlords may charge less than the maximum or leave rents unchanged. It does, however, establish the upper limit that tenants and property owners will use for increases taking effect during calendar year 2027.
The 10% ceiling applies to residential tenancies governed by Oregon’s general rent-increase law. It also applies to covered spaces in manufactured-home parks and floating-home marinas with 30 or fewer spaces. For covered tenancies in those facilities with more than 30 spaces, the maximum annual increase remains 6%.
The difference is significant for residents who pay rent for a space beneath a home they own. On monthly space rent of $1,000, a 6% increase would add $60. At a facility subject to the 10% ceiling, an increase of that size would add $100. Over a full year, the amounts would be $720 and $1,200, respectively. The applicable limit depends on the facility and the tenancy, not simply on whether a resident owns the dwelling.
Oregon law requires the Department of Administrative Services to calculate and publish the following year’s maximum by September 30. For tenancies under the general formula, the department must select the lesser of 10% or 7% plus the applicable Consumer Price Index. Its calculation reached the statutory 10% ceiling for 2027.
The inflation data used in that calculation comes from the U.S. Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers in the West Region. The federal measure covers 13 states, including Oregon, and tracks changes across a broad range of goods and services. The bureau reported that the region’s all-items index in August was 3.2% higher than a year earlier. That figure is regional inflation data, not a finding that rents or landlords’ expenses at Oregon properties increased by 3.2%.
The new maximum is half a percentage point higher than the 2026 ceiling. On a $1,900 rental, the difference between a 9.5% increase and a 10% increase is $9.50 a month. The full permitted increase is the larger figure in a tenant’s budget: $190 more each month if a landlord raises that rent by the entire 10%.
A household paying $1,500 faces a possible increase of $150 a month under the new ceiling. For a renter paying $2,500, it is $250 a month, or $3,000 over a full year. Those examples do not predict what any landlord will charge. They show the dollar amounts the statewide percentage permits when applied to different existing rents.
The limit does not cover every dwelling. Oregon’s percentage cap generally excludes a unit whose first certificate of occupancy was issued less than 15 years before the landlord gives notice of an increase. Other housing arrangements, including some subsidized properties, can carry additional rules. A tenant’s applicable limit therefore depends on the property and the terms of the tenancy.
The state also restricts the timing of many increases. Under the general residential tenancy provisions, landlords ordinarily cannot raise rent during the first year of a tenancy or more than once in a 12-month period. After that first year, an increase generally requires at least 90 days’ written notice. Setting a 10% annual ceiling does not remove those requirements.
The separate 6% provision for larger manufactured-home parks and floating-home marinas follows a change enacted by the Legislature in 2025. Facilities with 30 or fewer spaces remain under the formula used for other covered tenancies. Both limits will apply during 2027 according to the type and size of the covered facility.
Monday’s announcement gives Oregon renters advance notice of the highest percentage allowed next year, but it cannot tell a household whether its landlord will impose an increase. For those who do receive notice, the immediate financial consequence will appear in the monthly payment: at the full 10% limit, every $1,000 in existing rent adds $100 to the bill.