A landlord in Salem raises the rent on a 20-year-old duplex. She charges a flat 10%, the same as last year. The notice bounces back. Oregon’s statewide cap for 2026 is 9.5%, not 10%. The notice also needed to go out 90 days before the increase, not 30. One outdated number is enough to void a rent increase in Oregon.
Oregon’s landlord-tenant law runs through ORS Chapter 90. It’s one of the more heavily regulated frameworks in the country.
Quick Answer
Oregon caps annual rent increases at the lesser of 10% or 7% plus regional CPI. For 2026, that works out to 9.5% (ORS 90.323). Increases require 90 days’ notice, or 7 days for week-to-week tenancies. Ending a month-to-month tenancy needs 30 days’ notice in the first year. After that, it takes a qualifying cause plus either 90 days’ notice or 60 days paired with relocation assistance. Nonpayment of rent requires 10 to 13 days’ notice. Security deposits have no statutory cap, but landlords must return or account for them within 31 days of move-out.
Oregon’s Landlord-Tenant Law Framework
ORS Chapter 90, the Residential Landlord and Tenant Act, governs nearly every rental relationship in Oregon. That covers a single-family home in Bend and a downtown Portland apartment alike. Unlike states that leave rent control to individual cities, Oregon regulates rent increases and eviction cause statewide. A landlord in rural Malheur County follows the same rent cap math as one in Multnomah County.
That statewide reach is what makes Oregon distinctive. Cities can still add their own protections on top of the state floor. Portland, for example, layers a relocation assistance ordinance onto certain rent increases and no-cause terminations. Those local rules go beyond what ORS Chapter 90 requires elsewhere in the state. A landlord who only checks the state statute, and skips the local ordinance, can end up out of compliance in Portland specifically.
You can find the full statute at the Oregon State Legislature’s ORS Chapter 90 page. It’s worth bookmarking directly. The legislature amends Oregon’s landlord-tenant statutes almost every session. Washington is the only other West Coast state with a comparably structured statewide rent cap. Our Washington landlord-tenant law guide covers how that state’s version compares.
Two things happen every year on a fixed statutory timeline, whether or not a lease is up for renewal. The state publishes a new maximum rent increase percentage each September. And every security deposit accounting runs on a hard 31-day clock. Missing either one carries real financial exposure. That’s exactly why this part of Oregon law gets so much landlord attention.
Oregon’s Statewide Rent Increase Cap for 2026
Oregon was the first state to pass a statewide rent cap. Senate Bill 608 became law in 2019. Senate Bill 611 later changed the formula to a variable rate tied to inflation. That formula sets the number landlords use today.
How the 2026 Cap Is Calculated
The maximum annual rent increase is the lesser of 10% or 7% plus the 12-month change in the Consumer Price Index for All Urban Consumers in the West Region. The Oregon Department of Administrative Services publishes the official rent stabilization figures each fall. For 2026, the maximum is 9.5%, calculated from a 2.5% CPI reading. That’s down from 10% in 2025, when inflation ran the formula up against its cap. The state recalculates and republishes this figure every fall for the following calendar year. A percentage that was accurate in January can be stale by the next increase cycle.
Manufactured dwelling parks and floating home marinas with more than 30 spaces follow a separate 6% cap under House Bill 3054 (2025), instead of the general 9.5% figure. Getting either the percentage or the notice window wrong carries a real penalty. A landlord who raises rent above the cap, or with fewer than 90 days’ notice, owes the tenant three months’ rent plus actual damages under ORS 90.323(6). On top of that, the increase simply doesn’t take effect as written.
Notice Periods for a Rent Increase
Oregon doesn’t allow a rent increase during the first year of a tenancy at all. After that, month-to-month tenants get at least 90 days’ written notice for any increase. Week-to-week tenants get at least 7 days. Fixed-term leases only see an increase at renewal, unless the lease itself allows for one. Our rent increase notice and letter template walks through what to include, so the notice itself doesn’t become the reason a tenant challenges it.
Which Properties Are Exempt
New construction stays exempt from the cap for 15 years from the date it received its certificate of occupancy. Buildings that received their certificate more than 15 years ago age into coverage automatically. A property that qualified as exempt when a landlord bought it may not stay exempt for the life of the ownership. Landlords who track each property’s certificate-of-occupancy date in their own records can catch that transition early. That way, it never triggers a rent increase that exceeds the cap.
Ending a Tenancy in Oregon: Notice Requirements
Oregon is a statewide just-cause eviction state. The required notice period depends on why the tenancy is ending, and how long the tenant has lived there. Whatever the reason, the notice itself has to state that reason clearly and accurately. Our eviction letter guide covers what a legally sound notice needs to include before it goes out.
Nonpayment of Rent
A 2023 law change, House Bill 2001, replaced the old 72-hour and 144-hour nonpayment notices under ORS 90.394. Longer timelines now apply to anything other than a week-to-week tenancy. Week-to-week tenants still get a 72-hour notice. The landlord must deliver it no sooner than the fifth day of the rental period. Every other tenancy gets one of two options. The first is a 10-day notice, delivered no sooner than the eighth day of the rental period. The second is a 13-day notice, delivered no sooner than the fifth day. Many landlord guides still cite the pre-2023 72-hour rule for all tenancies. It’s worth double-checking any notice template against the current 10-day or 13-day requirement before sending it.
No-Cause Termination During the First Year
At any point in the first year of occupancy, a landlord may end a month-to-month tenancy without stating a reason. The tenant must get at least 30 days’ written notice.
Just-Cause Termination After the First Year
Once a tenant has lived in a unit for more than a year, a landlord can no longer end the tenancy without cause. Ending it takes one of two paths. The first is a qualifying tenant-based reason, like nonpayment or a lease violation, under ORS 90.392 or 90.396. The second is a landlord-based reason under ORS 90.427(5): selling to a buyer who intends to occupy the unit, demolishing the property, or moving in a family member.
Outside Portland and Milwaukie, a landlord using one of those landlord-based reasons has two notice options. The first is a 90-day notice with no payment required. The second is a 60-day notice paired with one month’s rent in relocation assistance. Landlords who own more than five rental units in Oregon must pay that month’s rent either way.
Security Deposits in Oregon
Oregon takes an unusual approach to security deposits. It doesn’t cap the amount at all, but it enforces the return process tightly.
No Statutory Maximum, One Real Constraint
There is no dollar or month’s-rent limit on what a landlord can collect as a security deposit in Oregon. One real constraint does apply. If a landlord wants to raise an existing tenant’s deposit after the first year of tenancy, the landlord must give the tenant at least three months to pay the increased amount.
The 31-Day Return Deadline
A landlord has 31 days after the tenancy ends, and the tenant returns possession, to act. In that window, the landlord must either return the full deposit or send a written, itemized accounting (ORS 90.300). The accounting has to explain what they withheld and why. Oregon limits deductions to unpaid rent and damage beyond normal wear and tear. Miss the 31-day window, and a tenant can sue for up to twice the amount wrongfully withheld, plus attorney fees. The statute includes no grace period. Day 33 counts the same as never sending the accounting at all.
2026 Changes to Holding Deposits
As of January 1, 2026, Oregon added new rules for holding deposits. A holding deposit is the smaller deposit some landlords collect to reserve a unit before the parties sign a full lease. Landlords can now only collect one after they approve an applicant. If the applicant backs out because of a genuine habitability problem, like a broken heater or a lock that doesn’t work, the landlord must refund the deposit within 5 days. This closes a gap that let landlords collect and keep a holding deposit before an applicant had any real assurance the unit was livable.
Deposits in Oregon are legally the tenant’s money, held in trust rather than treated as landlord revenue. That makes a dedicated account and careful documentation matter more here than in states with a simpler flat-cap rule. RentRedi holds security deposits in a separate, escrow-type account. It can also auto-route funds to per-entity accounts. That gives landlords a cleaner paper trail if a deposit dispute ever ends up in small claims court.
Late Fees in Oregon
Oregon regulates late fees under ORS 90.260. The rules go beyond a simple flat percentage. A landlord cannot charge a late fee at all until rent is at least 4 days late. Oregon requires a mandatory 4-day grace period, and the lease cannot shorten or waive it.
After that, a landlord has to pick one fee structure and stick to it in the written rental agreement. One option is a reasonable flat fee, typical for the local market. Another is a per-day charge starting on day 5, capped at 6% of that flat fee. The third is a 5% charge on the rent, applied once for each 5-day period it stays unpaid. Mixing structures, or charging a late fee before day 5, makes the fee unenforceable, even if the rent really was late. Late fee rules vary widely by state; our late fees by state guide breaks down how Oregon’s approach compares to nearby states.
Landlord Entry Rules in Oregon
Under ORS 90.322, a landlord must give a tenant at least 24 hours’ actual notice before entering for a non-emergency reason. That covers a repair, an inspection, or a showing. The landlord can also only enter at a reasonable time. “Actual notice” means the tenant received it, not just that the landlord sent it. A tenant can refuse an entry that comes at an unreasonable time, or with unreasonable frequency, even after receiving proper notice.
Emergencies are the exception. A landlord can enter without any notice if there’s a genuine emergency, such as a fire or a pipe that’s actively flooding the unit. The landlord must tell the tenant within 24 hours afterward what happened and who entered. Get this wrong on a repeated basis, and a tenant can recover a full month’s rent plus actual damages under ORS 90.322(8). That’s a steeper penalty than many landlords expect for what can feel like a routine scheduling mistake.
Habitability Requirements Oregon Landlords Must Meet
ORS 90.320 sets Oregon’s habitability floor. It covers weatherproofing, working plumbing and electrical systems, hot and cold running water, adequate heat, safe common areas, and working smoke and carbon monoxide alarms. No lease clause, not even an “as is” clause, can waive any of this.
One requirement here is newer than most general landlord guides reflect. Take any building that received its construction permit on or after April 1, 2024. Oregon now requires adequate cooling facilities in at least one room of the unit, not counting a bathroom. That includes central air, a heat pump, or a landlord-provided portable air conditioning unit. The requirement only applies to newer construction for now. Oregon doesn’t require an older 1990s duplex to add cooling. But any new development breaking ground in the state needs to plan for it from the start.
Repair timelines scale with how serious the problem is. A general habitability complaint gives the landlord roughly 30 days to fix it after written notice. A loss of an essential service, like heat, water, or electricity, moves much faster. It can let a tenant terminate on as little as 48 hours’ notice if the loss is an imminent, serious threat. Our rental property maintenance guide covers how to build a system for catching and logging repair requests before they turn into a habitability dispute.
What a Landlord Cannot Do in Oregon
A few of Oregon’s rules trip up landlords who assume the rules match wherever they last owned a rental.
Oregon has banned source-of-income discrimination statewide since 2014. A landlord cannot refuse to rent to an applicant, or treat a tenant differently, because they use a Section 8 housing choice voucher or other rental assistance. A landlord doesn’t have to accept every voucher applicant, and normal screening still applies. But “no Section 8” as a blanket policy isn’t legal in Oregon, the way it is in some other states.
A landlord also cannot retaliate against a tenant for exercising a legal right. That includes requesting a repair, reporting a code violation, or joining a tenant organization. ORS 90.385 prohibits retaliatory conduct, whether it’s a rent increase, a service cutoff, or a termination notice timed right after a complaint. The retaliation itself can become the tenant’s defense in an eviction case, even if the underlying notice was otherwise valid.
As covered above, a landlord also cannot enter without proper notice outside of an emergency. A landlord cannot exceed the current-year rent cap, either. And a landlord cannot keep a deposit without sending the required itemized accounting within 31 days.
Common Mistakes to Avoid
Using Last Year’s Rent Cap Percentage
The maximum allowable increase changes every year. A landlord who reuses a 10% figure from 2025 on a 2026 notice is issuing a notice for more than the law allows. That can void the increase entirely, not just reduce it to the legal maximum.
Sending a 72-Hour Nonpayment Notice for a Monthly Tenancy
The old 72-hour rule for nonpayment still shows up in outdated templates and older blog posts. It only applies to week-to-week tenancies now. A monthly tenant gets 10 or 13 days, depending on which notice format the landlord chooses. A notice that undercuts that window is defective.
Treating the Security Deposit Like Company Cash
Because Oregon does not cap deposit amounts, some landlords collect a larger deposit and then treat it as available working capital. It is not. The 31-day accounting deadline and double-damages penalty apply no matter how a landlord used the money in the meantime.
Assuming No-Cause Termination Still Works After Year One
A landlord who has always ended month-to-month tenancies with a simple 30-day no-cause notice can run into trouble fast. The moment a tenant passes the one-year mark, that option disappears, and a qualifying cause becomes mandatory. Calendar the one-year anniversary of every month-to-month tenancy, not just the lease start date on a fixed-term one.
A Look at How This Plays Out
Consider a landlord like Marcus, who owns a small four-unit building in Eugene, a common scenario rather than a specific customer. His building received its construction permit in 2008, so the new cooling requirement doesn’t apply to it. The rent cap and notice rules still do. Each September, he checks the Oregon Department of Administrative Services announcement before sending any rent increase notices. Sending last year’s percentage on autopilot would put him over the legal maximum.
When a tenant’s water heater fails in January, he treats it as an essential-service loss, not a routine repair request. That gives him roughly 48 hours to act instead of 30 days. He also documents the timeline, in case the tenant later raises a habitability defense. When a longtime tenant moves out in March, he sets a calendar reminder for day 25, not day 31. That leaves room to get the itemized deposit accounting out with time to spare.
None of this requires legal training. It just requires tracking three or four dates per tenancy, instead of defaulting to whatever felt normal in a previous state or a previous year.
Frequently Asked Questions
Oregon’s rules move fast. Between the annual rent cap update, the 2023 nonpayment notice change, and the 2026 habitability and holding-deposit updates, a quick reference on the most common questions is worth keeping on hand.
What is the maximum rent increase in Oregon in 2026?
The maximum is 9.5% for most residential rentals. The state calculates it as the lesser of 10% or 7% plus the West Region Consumer Price Index. Manufactured dwelling parks and marinas with more than 30 spaces follow a separate 6% cap. The state republishes this figure every fall, so landlords should confirm the current number before sending any increase notice.
What can a landlord not do in Oregon?
An Oregon landlord cannot refuse an applicant for using a Section 8 voucher. A landlord also cannot enter without at least 24 hours’ actual notice outside of an emergency, or raise rent beyond the current statewide cap. Ending a tenancy without cause after the first year isn’t allowed either. Neither is retaliating against a tenant for requesting repairs or reporting a code violation.
How much notice does a landlord have to give in Oregon before eviction?
It depends on the reason. Nonpayment of rent requires 10 or 13 days’ notice for most tenancies, and 72 hours for week-to-week. A no-cause termination during the first year requires 30 days. After the first year, a qualifying landlord-based reason requires either 90 days, or 60 days plus one month’s relocation assistance.
How long does a landlord have to return a security deposit in Oregon?
31 days after the tenancy ends and the tenant returns possession. The landlord must either return the full deposit, or send a written, itemized statement of any deductions, within that window. Missing the deadline risks owing the tenant up to twice whatever they wrongfully withheld.
Is Oregon a landlord-friendly state?
Not by the definition in our guide to landlord-friendly states. Oregon’s statewide rent cap, just-cause eviction protections, and source-of-income discrimination ban add real structure to a landlord’s decisions. That said, none of it is unmanageable with the right tracking in place. Oregon’s rental market stays strong in cities like Portland, Salem, and Eugene.
Do Oregon landlords have to accept Section 8 vouchers?
Not automatically. But a landlord cannot refuse an applicant solely because they hold a voucher. Oregon has banned source-of-income discrimination statewide since 2014. A landlord can still run normal credit, income, and background screening on a voucher holder, the same as any other applicant. What’s off-limits is denying the application, or advertising “no Section 8,” just because a housing program will pay part of the rent.
Does the rent cap apply to every rental in Oregon?
It applies to nearly all residential tenancies statewide. The one major exception: buildings that received their certificate of occupancy within the last 15 years. Manufactured dwelling parks and marinas with more than 30 spaces also follow their own separate cap, instead of the general formula.
Conclusion
Oregon’s landlord-tenant law rewards landlords who track a handful of dates closely. That means the annual rent cap update every fall, the one-year mark on every month-to-month tenancy, and the 31-day clock on every security deposit. None of the individual rules are especially complicated. But missing one can void a rent increase, extend an eviction timeline, or turn a routine deposit return into a lawsuit.
Three next steps are worth taking this month. Confirm the current year’s rent cap percentage before any increase notice goes out. Check whether any month-to-month tenant is approaching or past the one-year mark. And set a calendar reminder for day 25 of any move-out, not day 31.
RentRedi’s built-in accounting and reminder tools can help track these deadlines automatically. See how RentRedi handles rent collection, deposits, and compliance tracking.
Note: This content is not intended to substitute, replace, or be construed as professional legal advice. It is for reference purposes only. Please consult your legal counsel to ensure your lease complies with state and federal regulations.