From a Multi-Family Specialist Who Helps Oregon Landlords Stay Compliant With Rent Control and Just-Cause Eviction Rules
If you own rental property in Oregon, or you’re thinking about buying one, you need to understand that this state operates under a statewide rent control and just-cause eviction framework. It’s not a local ordinance in a few cities; it applies broadly across Oregon, and getting the details wrong can create real legal and financial exposure for a landlord. This article walks through the basics in plain language: why the law exists, what the rent increase rules actually are, how just-cause eviction works, and where the key exemptions sit. I am not an attorney, and nothing here should be treated as legal advice. Before you set a rent increase or move to terminate a tenancy, confirm the specifics with a qualified attorney, because small differences in a property’s situation can change which rules apply.
Get the Latest Salem Market Insights
Why this law exists
Oregon enacted statewide rent control and just-cause eviction protections through Senate Bill 608, which took effect in 2019. Before that, Oregon had no rent control at all, and no limit on a landlord’s ability to end a month-to-month tenancy without cause once it had run long enough. SB 608 changed both things at once: it capped how much rent can increase in a year for most covered tenancies, and it limited when and how a landlord can end a tenancy. The intent was to give tenants more predictability, while still allowing landlords legitimate reasons to raise rent or regain their property.
Read more: Homes for Sale in Salem, Oregon: What Can You Get for Your Budget?
The rent increase cap, and how it’s calculated
For most covered tenancies, Oregon law caps annual rent increases using a formula: 7% plus the Consumer Price Index (CPI), recalculated every year by the Oregon Office of Economic Analysis. For 2026, that cap is 9.5%. The rent cap changes each year. Landlords should check the current published cap before increasing rent. They shouldn’t rely on past figures or a single article.
The cap also comes with timing rules. Landlords cannot increase rent during the first year of a month-to-month tenancy. Once that first year has passed, a landlord who wants to raise rent must give 90 days’ written notice before the increase takes effect. That window is not optional, and failing to give proper notice can delay or invalidate an attempted increase.
Read more: Salem, Oregon Real Estate: What Buyers and Sellers Should Know Before Making a Move
New construction gets a temporary exemption
Not every rental unit is subject to the rent increase cap. New construction is exempt from the cap if the unit received its certificate of occupancy less than 15 years ago. The exemption depends on the certificate’s issue date, not the land’s age or the purchase date. Confirm the exact issue date before claiming this exemption.
Resetting rent between tenants
The rent cap applies to increases during an ongoing tenancy, it does not require a landlord to keep rent below market rate forever. A landlord can reset the rent to market rate when a tenant leaves voluntarily or the landlord lawfully ends the tenancy. Many people misunderstand this part of the law. The cap governs how much you can raise rent on a tenant who stays, not what you can charge a brand new tenant moving into a now-vacant unit.
Read more: What Should You Look for Before Buying an Investment Property in Salem, Oregon?
Just-cause eviction: how it works
Alongside the rent cap, SB 608 established a just-cause framework for ending tenancies. During the first 12 months of a month-to-month tenancy, a landlord may end the tenancy without cause, giving 30 days’ notice. After that first year, the ability to end a tenancy without cause goes away entirely, and a landlord may only terminate for cause.
“Cause” falls into two broad categories. Tenants may face eviction for reasons such as failing to pay rent or violating the lease. Landlords may also end a tenancy if they sell the property to a buyer who plans to live there, move into the unit themselves, house a family member, carry out major repairs or renovations that require the unit to be vacant, or remove the unit from residential use.
Read more: Duplex, Triplex, or Fourplex: Which Investment Property Makes More Sense in Salem, Oregon?
The notice and relocation assistance requirement
For landlord-based, no-fault terminations that happen after the first year of tenancy, the requirements get more specific. The landlord must give 90 days’ notice, and must pay relocation assistance equal to one month’s rent, delivered along with the termination notice itself, not after the fact.
Key exemptions worth knowing
There are two exemptions that come up often enough to be worth specific mention, though as with everything in this article, confirming your exact situation with an attorney matters because exemption rules can be narrow.
- Landlords with 4 or fewer units are generally exempt from the relocation assistance payment requirement, even when issuing a landlord-based no-fault termination.
- Owner-occupied properties with 2 units or fewer, where the owner lives on site, may use no-cause eviction at any time, without being limited to the first 12 months of tenancy.
Beyond these two, there can be other nuances depending on a property’s specific structure, use, and history, which is exactly why I’d never tell a client to treat a general overview like this as the final word on their own exemption status.
Why staying compliant actually matters
Getting any of this wrong carries real risk. Landlords must give proper notice and follow the annual rent cap. Tenants can challenge and reverse any unlawful rent increase.
Landlords must also have a valid reason to evict tenants, give proper notice, and pay any required relocation assistance. Tenants can contest an unlawful eviction, delaying the landlord’s recovery of the property by months.
I’ve watched landlords assume an outdated cap percentage still applied, or assume their small property was exempt from everything because of its size, when the exemption only covered one specific requirement. A short conversation with a landlord-tenant attorney before you act is almost always cheaper than cleaning up a mistake afterward.
Where I see this most in my own work
As a Multi-Family Specialist working across Marion, Polk, Yamhill, Linn, Benton, and Clackamas counties, this comes up constantly when I’m helping a landlord sell a rental property that currently has tenants in place. The sale itself and the tenant situation are two separate things that have to be handled correctly and in good faith, together.
How I handle tenant situations during a sale
When I represent a seller with existing tenants, I make sure we’re following the right process for whatever the situation calls for, whether that’s a sale to a buyer who intends to occupy the unit, a straightforward transfer with tenants staying in place, or something else. I keep communication with tenants honest and respectful throughout, because a sale that leaves tenants feeling blindsided creates problems nobody needs. I don’t give legal advice on terminations or notice requirements. What I do is make sure my sellers ask the right questions of the right professional, and that the people living in the property are treated fairly along the way.
If you own rental property and have questions about your situation
If you’re a landlord trying to understand how any of this applies to your specific property, especially if you’re weighing a sale or a transition, I’m happy to talk through what I’ve seen and point you toward getting the right legal guidance for your situation.
Frequently asked questions
Does the rent cap apply to every rental in Oregon?
It applies broadly to most covered tenancies, but there are exemptions, including certain new construction, so confirm your property’s specific status rather than assuming.
Can I raise rent during the first year of a tenancy?
No, Oregon law does not allow any rent increase during the first year of a month-to-month tenancy, regardless of the cap.
What happens if I don’t pay relocation assistance when it’s required?
That depends on your property’s size and the specifics of the termination, which is exactly why confirming your exemption status with an attorney before acting matters.
Can I evict a tenant without cause if they’ve lived there for two years?
Generally no, once the first 12 months of a month-to-month tenancy have passed, no-cause termination is no longer available except under specific exemptions like certain owner-occupied properties.
Is the 9.5% cap for 2026 going to stay the same next year?
No, the cap is recalculated annually using the 7% plus CPI formula, so the number changes most years and should be confirmed fresh each year.
A note on how this applies to your property
Every property has different circumstances. Small details, such as the number of units, whether the owner lives on-site, and the certificate of occupancy date, can affect which rules and exemptions apply.
Consult a qualified landlord-tenant attorney before raising rent or ending a tenancy. This article does not replace legal advice about your specific property.
About Al Cronemiller — Oregon Land Specialist, MORE Realty, Salem, Oregon. Started working timber with his father at age 12 — cruising timber, running property lines, building logging roads. His grandfather was Oregon State Forester in the 1930s and helped write Oregon’s reforestation bylaws; Cronemiller Lake near Corvallis is named after him. Al spent five years in the City of Salem survey department, owned a construction and remodeling company for 30 years as a licensed general contractor, and worked as a commercial property buyer for institutional hedge fund clients. He holds Land Specialist and Multi-Family Specialist designations and has spent 20+ years selling Oregon bare land, EFU farmland, timberland, and investment property.
This is Al Cronemiller, your Salem Oregon Bare Land Specialist. I always answer.
503-949-5025 | al@cronemiller.com | HomesForSaleSalemOregon.net
This article is educational and general in nature. It is not legal or tax advice — talk with a qualified attorney or CPA about your specific situation.
One Response