California Rent Increase Caps for 2026–2027: AB 1482 Calculations, Notices, Ledgers, and Lease Requirements

California's statewide rent increase caps changed on August 1, 2026.

For increases that take effect from August 1, 2026, through July 31, 2027, the maximum increase under the California Tenant Protection Act is:

The comparison column applies to increases effective August 1, 2025, through July 31, 2026.

These percentages are the statewide ceilings for covered units. They are not automatic increases, and they are not the right number for every property. A local rent stabilization ordinance, a fixed-term lease, a subsidy program, prior increases, or the property's exemption status may produce a lower amount or prevent the increase.

For a long-term or legacy owner, the percentage is only the start. The property's coverage, local rule, rent history, lease file, notice, and resident ledger must support the same decision.

The effective date selects the applicable statewide cap. The date the notice is prepared or served does not. For example, an increase that takes effect on July 31, 2026, falls in the prior period. An increase that takes effect on August 1, 2026, falls in the new period.

The California Department of Justice publishes the current statewide table and a separate chart of local rent limits. The controlling rule remains California Civil Code section 1947.12.

Does AB 1482 apply to the property?

Coverage comes first. A unit may be covered by AB 1482, exempt from the statewide cap, or governed by a stricter local rule. Confirm the property's jurisdiction, certificate-of-occupancy date, ownership structure, exemption notices, lease terms, and subsidy restrictions before choosing a percentage.

Use this sequence:

1. Confirm that the unit is residential.
2. Confirm the exact city and whether the property is in an incorporated or unincorporated area.
3. Check for a local rent stabilization ordinance or other local restriction.
4. Confirm the certificate-of-occupancy date.
5. Confirm the property type and ownership structure.
6. Confirm whether a required exemption notice was delivered and appears in the current rental agreement.
7. Review deed restrictions, affordability covenants, subsidy rules, and housing-assistance contracts.
8. Review the resident's rent and increase history for the prior 12 months.

Common statewide exemptions include certain deed-restricted affordable housing, qualifying dormitories, housing already subject to a stricter local rent limit, housing other than a mobilehome that was issued a certificate of occupancy within the previous 15 years, and some separately alienable homes or condominiums that meet both the ownership and notice requirements.

The 15-year exemption is rolling. Do not use 2005, 2010, or 2011 as a permanent construction cutoff. Compare the exact certificate-of-occupancy date with the proposed effective date of the increase.

Single-family homes and condominiums are not automatically exempt. The ownership structure matters, and the statutory exemption notice is a condition of the exemption for qualifying separately alienable property. A home owned by a corporation, a real estate investment trust, or an LLC with a corporate member does not qualify for that exemption.

The statute contains additional exemptions and conditions. Review the current text of Civil Code section 1947.12(d) before relying on an exemption.

What is the 2026–2027 rent cap in Southern California?

If a covered unit is in Los Angeles or Orange County and no stricter local rule applies, the statewide cap is 8.7% for an increase effective between August 1, 2026, and July 31, 2027.

That does not mean every owner in Los Angeles can raise rent by 8.7%. For example:

Sources: Los Angeles Housing Department, Los Angeles County Department of Consumer and Business Affairs, and City of Santa Ana.

Other Southern California cities also regulate rent increases. The local rule may use a different calendar, a different calculation, a different property cutoff, and additional registration or notice requirements. Confirm the incorporated city and the property's coverage before using the statewide percentage.

How AB 1482 calculates the maximum increase

For a covered unit, California Civil Code section 1947.12 limits the total increase over any 12-month period to the lower of:

• 5% plus the applicable change in the cost of living
• 10%

The percentage is applied to the lowest gross rental rate charged at any time during the 12 months before the proposed increase takes effect.

The formula is:

Maximum new gross rent = lowest gross rent during the prior 12 months × (1 + applicable cap)

Do not start with the resident's current rent unless the current rent was also the lowest gross rent charged during that lookback period.

Example: Los Angeles or Orange County

Assume:

• The unit is covered by AB 1482
• No stricter local rule applies
• The increase will take effect on October 1, 2026
• The lowest gross monthly rent charged during the preceding 12 months was $2,000
• No prior increase occurred during that period

Calculation:

$2,000 × 1.087 = $2,174

The maximum new gross monthly rent under the statewide cap would be $2,174.

Example: a prior increase already used part of the cap

Assume the same $2,000 base rent, but the rent was increased to $2,080 four months ago.

The maximum rent remains $2,174. The remaining headroom is:

$2,174 - $2,080 = $94

The owner does not receive a new 8.7% increase on top of $2,080. All increases during the same 12-month period count toward the combined ceiling.

AB 1482 permits no more than two increase increments during a 12-month period when the same resident remains in occupancy. A local ordinance may permit only one. See Civil Code section 1947.12(a).

How concessions and credits affect the calculation

AB 1482 uses gross rent. An owner-offered discount, incentive, concession, or credit that the resident accepts is excluded when determining the lowest gross rental amount, but the gross monthly rent and the concession must be separately identified in the lease, rental agreement, or amendment.

That distinction matters. A lease that states a $2,400 gross rent and separately documents a one-month concession creates a cleaner record than a ledger that simply changes the rent charge without explaining the credit.

Before calculating the increase, review:

• The signed lease and all amendments
• The gross monthly rent stated in the agreement
• Every concession, discount, incentive, and credit
• The recurring rent charge history
• Every prior increase effective during the lookback period
• Any subsidy or housing-assistance adjustment

Do not rewrite historical ledger charges to make the calculation work. Correct the source record through the approved accounting and legal process if the lease, notice, and ledger disagree.

How much notice is required?

A rent increase notice must be in writing.

For a periodic residential tenancy, Civil Code section 827 generally requires at least 30 days' advance written notice when the proposed increase is 10% or less of the rent charged at any time during the preceding 12 months, considering the proposed increase alone and together with other increases during that lookback period. An increase above that threshold generally requires at least 90 days' notice.

If the notice is served by mail and both the place of mailing and the address are within California, five calendar days are added. The practical minimums are therefore 35 days for an increase at or below the 10% threshold and 95 days for an increase above it.

AB 1482 itself does not permit a covered unit to exceed 10%, but the 90-day rule can matter for an exempt property when no stricter local rule applies.

Use the longer period when a lease, subsidy program, state law, or local ordinance requires more time. Electronic delivery alone should not be treated as a substitute unless current law, the agreement, and counsel-reviewed service requirements permit that method.

Sources: Civil Code section 827, Code of Civil Procedure section 1013, and the 2026 California Department of Real Estate landlord-tenant guide.

What the rent increase notice should show

Use a current counsel-reviewed form for the effective period and the applicable local jurisdiction. Before service, confirm that the notice and supporting file show:

• Property address and unit
• Every resident who must receive notice
• Current gross monthly rent
• New gross monthly rent
• Dollar amount and percentage of the increase
• Effective date
• Applicable state or local authority
• Any local registration, exemption, small-landlord, luxury-unit, or tenant-rights disclosure
• Delivery method and service date
• Proof of service or mailing
• Contact path for questions

Clear notice language and a reliable contact path help the resident understand what is changing, when it changes, and where to ask questions.

The notice should not suggest that the resident must sign or agree to a valid change in a periodic tenancy unless a separate agreement or disclosure actually requires a signature.

For a fixed-term lease, review the agreement before sending the notice. The California Department of Real Estate states that rent generally cannot be increased during a fixed term unless the rental agreement permits increases. If the lease does not authorize an increase, the landlord generally cannot impose one during the fixed term. Any midterm change would require a lawful, mutually agreed amendment and compliance with applicable state and local limits.

How to update the tenant ledger after notice

The ledger should reflect the lawful effective date. It should not be used to create the legal authority for the increase.

Owners and property managers can use this sequence as an operational review framework:

1. Document the source calculation. Save the jurisdiction, coverage decision, lowest-gross-rent lookback, prior increases, applicable cap, proposed rent, and reviewer.
2. Generate the approved notice. Use the verified resident names, unit, current rent, new rent, effective date, and required local language.
3. Serve and document. Save the final notice and proof of personal service or mailing in the resident record.
4. Schedule the recurring rent change. Keep the current rent through the day before the lawful effective date. Schedule the new gross rent for the effective date stated in the notice.
5. Keep concessions separate. Do not collapse a rent credit or concession into the recurring gross rent field.
6. Avoid backdating. Do not post the higher recurring charge before the notice becomes effective or alter prior charges merely to match the intended result.
7. Handle mid-month changes carefully. California permits a properly noticed increase to become effective during a rental period, but the old and new rates must be prorated correctly. Using the first day of a rental period usually creates a cleaner notice and ledger.
8. Have a second person verify the file. Compare the signed lease, rent history, calculation, notice, proof of service, and scheduled recurring charge.
9. Verify the first affected ledger. Confirm that the first charge after the effective date matches the approved rent and that the resident-facing balance is correct.

If AppFolio is the system of record, use only the fields, permissions, document types, and approval path defined in the current approved operating procedure. Software entry comes after the property-level legal and notice review.

Does the lease need to be updated for AB 1482?

Not solely because the annual cap changed.

A compliant rent increase notice can change the rent in a periodic tenancy after the required notice period. That does not mean the entire lease should be replaced each year.

The practical answer is not one universal "AB 1482 addendum." The file may need a Tenant Protection Act and just-cause notice, a qualifying exemption notice, separate concession language, an owner-occupancy provision, or a local addendum. Which document belongs in the file depends on the property's coverage and the lease terms.

The lease file should still be audited for these separate requirements:

The statewide Tenant Protection Act notice and the qualifying exemption notice are not interchangeable. A property should not receive both as boilerplate without a documented coverage decision.

Civil Code section 1946.2 contains the required statewide notice, the exemption language, and the current owner-occupancy conditions. Use the current statutory wording and a counsel-reviewed form rather than copying language from an old lease packet. See Civil Code section 1946.2.

A pre-notice checklist for owners and property managers

Assign one person to own the calculation and notice file. Assign a second person to verify the notice, proof of service, recurring charge, and first affected ledger.

Before a rent increase is sent, confirm all of the following:

• The address resolves to the correct city or unincorporated county area
• State and local coverage have been reviewed
• The certificate-of-occupancy date is documented
• The ownership structure and any claimed exemption are documented
• Required exemption or Tenant Protection Act notices are in the lease file
• Deed restrictions, subsidies, and housing-assistance rules have been checked
• The lowest gross rent during the prior 12 months is verified
• Concessions and credits are separately documented
• Every prior increase in the lookback period is included
• The proposed increase does not exceed the combined state or local cap
• The number of increase increments is allowed
• The fixed-term or periodic lease status has been reviewed
• The effective date provides the full notice period
• The service method and proof are defined
• Local registration fees, certifications, and required notices are current
• The AppFolio charge is scheduled for the lawful effective date
• A second reviewer will compare the calculation, notice, service record, and first affected ledger

Frequently asked questions

What is the maximum rent increase in California for 2026–2027?

It depends on the property's location. The statewide AB 1482 caps are 8.7% in Los Angeles and Orange Counties, 8.1% in Riverside and San Bernardino Counties, 8.2% in San Diego County, 8.8% in Alameda, Contra Costa, Marin, San Francisco, and San Mateo Counties, and 8.6% in all other California counties for increases effective August 1, 2026, through July 31, 2027. A stricter local rule may lower the amount.

Can a Los Angeles landlord raise rent by 8.7% in 2026?

Only if the unit is covered by AB 1482, the increase takes effect during the applicable period, no stricter local rule applies, and prior increases do not use part of the cap. A City of Los Angeles RSO unit is generally limited to 3% through June 30, 2027. Fully covered units in unincorporated Los Angeles County have lower limits.

Can rent be increased twice in one year under AB 1482?

AB 1482 allows no more than two increments during a 12-month period when the same resident remains in the unit. The combined increase cannot exceed the cap based on the lowest gross rent in the lookback period. A local ordinance may allow only one increase.

Does a California rent increase require 60 days' notice?

For a periodic residential tenancy, the general state notice periods are at least 30 days when the proposed increase is at or below Civil Code section 827's 10% threshold and at least 90 days when it exceeds that threshold. The comparison considers the proposed increase alone and together with other increases during the preceding 12 months. If both the mailing location and address are within California, mailing adds five calendar days. A 60-day period is associated with other landlord-tenant notices, but it is not the general rent-increase period stated in section 827.

Does the resident need to sign the rent increase notice?

A periodic-tenancy rent increase generally depends on proper written notice and service, not the resident's signature. A fixed-term amendment, a statutory disclosure, or another agreement may require a signature. Review the lease and the applicable law before deciding which document is needed.

Do I need a new lease every time rent increases?

Usually not for a periodic tenancy. Use a compliant rent increase notice and update the recurring rent only after the notice becomes effective. Separately audit the lease for the Tenant Protection Act notice, any qualifying exemption notice, concession language, owner-occupancy provision, and local addenda.

Review the decision before the notice goes out

A rent increase is a property-level decision. The lawful percentage is only one input. Coverage, local rules, rent history, concessions, lease terms, notice timing, resident communication, and ledger execution all have to agree.

Request Coastline Equity's Rent Increase Pre-Notice Review before the notice is served.

The review supports owner decision-making and property management intake. It is not legal advice and does not create an attorney-client relationship. Property-specific legal questions should be reviewed by qualified counsel.