It depends on where the unit is. For a covered tenancy, the cap in 2027 is 10% in Oregon and Washington, 2.2% in BC and 1.9% in Ontario. California allows 10% or 5% plus the change in cost of living, whichever is lower. Most other US states set no statewide cap. This is information, not legal advice.
What are the 2026 and 2027 rent increase limits?
Five jurisdictions publish a number every year, each with its own formula. Oregon and Washington use 7% plus inflation, capped at 10%. California uses 5% plus inflation, capped at 10%. BC and Ontario tie the limit to provincial inflation and keep it far lower.
| Jurisdiction | 2026 limit | 2027 limit | Notice before it takes effect |
|---|---|---|---|
| Washington | 9.683% | 10% | Written notice; no increase in the first 12 months |
| Oregon | 9.5% | 10% | Written notice; set each year by the state economists |
| California | 10% or 5% plus cost of living, the lower | Same formula | 30 days up to 10%, 90 days above |
| British Columbia | 2.3% | 2.2% | 3 full months on Form RTB-7 |
| Ontario | 2.1% | 1.9% | 90 days in the Landlord and Tenant Board form |
Each allows one increase per 12 months. Washington adds a rule the others do not: no increase at all during the first 12 months of a tenancy.
What does that mean on a $2,000 rent?
The spread is wider than the percentages suggest. On a $2,000 unit renewing in 2027, a Washington or Oregon landlord may raise rent by up to $200 a month. A BC landlord may raise it by $44. An Ontario landlord may raise it by $38.
Ontario also caps the guideline itself at 2.5%, so even a high inflation year cannot push a covered increase past it without approval from the Landlord and Tenant Board. In BC, the only routes above the limit are the tenant's signed written agreement or an additional rent increase granted by the Residential Tenancy Branch.
Which units and increases are exempt?
In Ontario, the guideline does not apply to units first occupied for residential purposes after November 15, 2018, or to the rent a landlord and a new tenant agree at turnover. A basement suite finished in 2020 can be priced to market on renewal. A 1990s apartment cannot.
In California, the Tenant Protection Act does not cover single-family homes unless a corporation or a real estate investment trust owns or controls them, or units issued a certificate of occupancy within the past 15 years. Two houses on the same street can sit under different rules depending on who holds title. The landlord sets the initial rent when new tenants move in, and local rent control can be stricter than the state cap.
In BC, an unused increase does not carry forward. A landlord who raised rent 1% last year cannot add the missing 1% to this year's 2.3%. The limit also covers utilities and fees bundled into rent, even when those costs rose more.
What should a property manager do before sending an increase?
Check three things per unit, not per portfolio: whether the unit is covered, the date of the last increase or move-in, and the required notice period. Keep the exemption evidence on file. Ontario tells landlords to keep building and occupancy permits to prove a post-2018 exemption. Then time the notice so it lands before the deadline; our post on when to send a lease renewal offer covers that side.
In Ontario and California, rent resets at turnover, so the vacancy is where rent is actually set, and a slow lease-up costs you the reset. LetHub's AI voice agent and chat answer rental inquiries in about 30 seconds, around the clock, and book ID-verified showings. Book a demo to see it on your listings.
Rent increase limits: FAQ
Is there a federal limit on rent increases in the US?
No. There is no federal cap on private market rent increases. California, Oregon and Washington set statewide caps, and some cities add local rent control on top. In a state with no cap, the lease term and the required written notice are what limit the timing of an increase.
What is Ontario's rent increase guideline for 2027?
1.9%, down from 2.1% in 2026. It applies to most private rental units covered by the Residential Tenancies Act, 2006, once 12 months have passed since the last increase or the start of the tenancy. The landlord must give 90 days written notice in the Landlord and Tenant Board form. Units first occupied after November 15, 2018 are exempt.
How much can a landlord raise rent in BC in 2026?
2.3% for increases taking effect in 2026, and 2.2% in 2027. The landlord must give three full months notice on Form RTB-7, stating the exact dollar amount and the effective date. Rent can rise once every 12 months. Anything above the limit needs the tenant's signed written agreement or approval from the Residential Tenancy Branch.
Can a landlord raise rent by any amount when a tenant moves out?
In California and Ontario, yes. The landlord and the new tenant agree the starting rent, and the cap applies to later increases. In Washington, the first 12 months of any new tenancy carry no increase at all. Check local rent control too, since some city rules reach further than the state or provincial cap.
