Quick Answer
Under Cal. Civ. Code § 1947.12, you may not raise rent on a covered unit by more than 5% plus the regional cost-of-living change, or 10%, whichever is lower, over any 12 months, and no more than twice in that period. For increases effective August 1, 2026 through July 31, 2027, the State Treasurer’s published rent limits run from 8.1% to 8.8% depending on region. Statute text and published limits last checked October 2, 2026.
Key Takeaways
- The cap is the lesser of two numbers. You take 5% plus the regional cost-of-living change and compare it with 10%. The lower figure is your ceiling (§ 1947.12).
- Your region sets the number. For increases effective August 1, 2026 through July 31, 2027, the published limits are 8.7% (Los Angeles and Orange Counties), 8.8% (San Francisco Bay Area counties), 8.2% (San Diego), 8.1% (Riverside and San Bernardino), and 8.6% (all other counties).
- Two increases a year at most. Over any 12-month period you may raise the rent in no more than two steps, and together they stay inside the cap.
- Exemptions come with conditions. A single-family home or condominium qualifies only when the owner is not a REIT, a corporation, or an LLC with a corporate member, and the tenant has the required written exemption notice.
- Notice is 30 days for increases of 10% or less. Add 5 days when you serve by mail (Civ. Code § 827).
1. The Statutory Rent Increase Formula
Under California Civil Code § 1947.12 (AB 1482), you may not raise the gross rental rate on a covered unit by more than 5% plus the percentage change in the cost of living, or 10%, whichever is lower. The cap is measured against the lowest rent you charged for that unit at any time in the prior 12 months, and the statute allows no more than two increments in that 12-month period.
The cost-of-living figure comes from the Consumer Price Index for All Urban Consumers for your metropolitan area, using April data. The figure resets each August 1, so check the current published table before you set an increase.
2. The Regional Limits for August 1, 2026 to July 31, 2027
| Region | Counties | Maximum Increase |
|---|---|---|
| Los Angeles area | Los Angeles, Orange | 8.7% |
| San Francisco area | Alameda, Contra Costa, Marin, San Francisco, San Mateo | 8.8% |
| San Diego area | San Diego | 8.2% |
| Riverside area | Riverside, San Bernardino | 8.1% |
| All other counties | Every other California county | 8.6% |
These figures come from the California Tax Credit Allocation Committee’s rent limit memo, published through the State Treasurer and effective August 1, 2026 through July 31, 2027. The memo uses the same formula as § 1947.12. Confirm your county’s row before you serve a notice.
Example: Your Los Angeles tenant pays $2,000 a month. 8.7% of $2,000 is $174, so the highest rent you may charge after a single increase is $2,174.
3. Exemptions Under § 1947.12(d)
Not every California rental is subject to the cap. The statute exempts, among others:
- Single-family homes and condominiums whose owner is not a REIT, a corporation, or an LLC with at least one corporate member, when the tenant has the written notice that the unit is exempt from §§ 1947.12 and 1946.2. For tenancies that began on or after July 1, 2020, the statute places that notice in the lease.
- Housing issued a certificate of occupancy within the past 15 years, measured on a rolling basis.
- Owner-occupied duplexes, where the owner lives in one unit as a principal residence.
- Deed-restricted affordable housing and dormitories.
- Housing under a local ordinance that limits rent increases to a lower amount than § 1947.12.
The statute runs through January 1, 2030, when it is repealed unless extended.
4. Notice Requirements
Civil Code § 827 sets the notice period for a rent increase:
- Increases of 10% or less: at least 30 calendar days of written notice before the effective date.
- Increases above 10% (possible only on exempt units): at least 90 calendar days of written notice.
- Service by mail: add 5 calendar days when you mail the notice within California.
What This Guide Does Not Cover
This guide covers the statewide cap under California Civil Code § 1947.12. It describes what the statute and the published limits say as of the check date above and does not predict how a court will rule on your facts.
It does not cover:
- City rent stabilization ordinances, such as those in Los Angeles, San Francisco, and Oakland, which can set lower limits.
- Commercial leases and deed-restricted affordable housing programs.
- Just cause for ending a tenancy, covered in the 30-day vs 60-day notice guide.