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:
| Property location | 2026–2027 statewide cap | 2025–2026 statewide cap |
|---|---|---|
| Los Angeles County and Orange County | 8.7% | 8.0% |
| Riverside County and San Bernardino County | 8.1% | 7.5% |
| San Diego County | 8.2% | 8.8% |
| Alameda, Contra Costa, Marin, San Francisco, and San Mateo Counties | 8.8% | 6.3% |
| All other California counties | 8.6% | 7.7% |
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.
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:
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.
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:
| Jurisdiction and unit type | Listed 2026–2027 local ceiling | Effective period | Important control |
|---|---|---|---|
| City of Los Angeles unit covered by the Rent Stabilization Ordinance | 3.0% | July 1, 2026, through June 30, 2027 | No more than one increase within any 12-month period. No additional utility percentage after February 2, 2026. |
| Fully covered unit in unincorporated Los Angeles County | 1.919% | July 1, 2026, through June 30, 2027 | Registration, fee, notice, and compliance requirements apply. |
| Qualifying small property landlord in unincorporated Los Angeles County | 2.919% | July 1, 2026, through June 30, 2027 | Annual self-certification and a disclosure in the rent increase notice are required. |
| Qualifying luxury unit in unincorporated Los Angeles County | 3.919% | July 1, 2026, through June 30, 2027 | The notice must state that the unit meets the luxury-unit requirements. |
| Covered unit in Santa Ana | 2.87% | September 1, 2026, through August 31, 2027 | Rent may be increased only once in a 12-month period. |
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.
For a covered unit, California Civil Code section 1947.12 limits the total increase over any 12-month period to the lower of:
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.
Assume:
Calculation:
$2,000 × 1.087 = $2,174
The maximum new gross monthly rent under the statewide cap would be $2,174.
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).
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:
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.
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.
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:
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.
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:
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.
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:
| Lease or addendum issue | When it matters | What to verify |
|---|---|---|
| Tenant Protection Act and just-cause notice | Property is subject to Civil Code section 1946.2 | Confirm that the 12-point statutory notice was delivered through the route applicable to the tenancy date. For a tenancy commenced or renewed on or after July 1, 2020, it must appear in the lease or rental agreement, an addendum, or a written notice signed by the tenant. For a tenancy existing before July 1, 2020, it had to be delivered by written notice no later than August 1, 2020, or as an addendum. Confirm Civil Code section 1632 requirements. |
| Qualifying exemption notice | A separately alienable home, condominium, or other qualifying property is relying on the individual-owner exemption | The exact statutory exemption notice appears in the rental agreement for a tenancy commenced or renewed on or after July 1, 2020. Ownership still qualifies. |
| Gross rent and concessions | The owner offered a discount, incentive, concession, or credit | Gross monthly rent and each concession or credit are separately identified in the lease or amendment. |
| Owner-occupancy termination provision | The owner may later rely on owner or qualifying-relative occupancy as a no-fault just cause | For leases entered on or after July 1, 2020, confirm that the resident agreed in writing or the lease contains the required termination authority. Current law also imposes occupancy, notice, proof, timing, and remedy conditions. |
| Fixed-term increase provision | The owner intends to increase rent before a fixed term ends | The lease expressly permits the increase and the provision complies with state and local limits. Counsel should review the clause before use. |
| Local ordinance addenda and notices | A city or county adds disclosure, registration, notice, or just-cause requirements | The current local form set and lease package match the property's jurisdiction and coverage. |
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.
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:
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.
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.
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.
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.
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.
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.
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.