New Rent Caps In Effect Through July 2027

Posted By: David Cordero

Rental housing providers are reminded that updated statewide rent caps took effect today, August 1, 2026, for all rental units that are subject to the Tenant Protection Act (AB 1482), and not operating in a jurisdiction with its own rent stabilization and/or just cause eviction ordinance.

Housing providers subject to AB 1482 may increase rents for their currently occupied units no more than two times and not more than the following percentages between August 1, 2026 and July 31, 2027:

  • Orange County - 8.7%
  • Riverside & San Bernardino Counties - 8.1%


NOTICING REQUIREMENTS:

  • UNDER 10% - Even if your rental units are not subject to AB 1482, if you will be increasing rents UNDER 10%, you must provide AT LEAST 30-DAYS WRITTEN NOTICE. More restrictive local ordinances may require different noticing.

  • 10% OR MORE - Event if your rental units are not subject to AB 1482, if you will be increasing rents 10% OR MORE, you must provide AT LEAST 90-DAYS WRITTEN NOTICE. More restrictive local ordinances may require different noticing.

We emphasize the "AT LEAST" portion in these requirements as a reminder that consumers are seeing costs go up all around. Rental-housing providers should be cognizant that significant rent increases can and will have consequences. They should communicate with their residents in connection with the notice to increase rent as much as possible.


EXEMPTIONS:

  • Single-Family Homes and Condos 
    • However, these types of rentals are not exempt IF they are owned by a Real Estate Investment Trust (REIT), Corporation, or a LLC where one of the owners is a Corporation.  
  • Properties containing two separate dwelling units within a single structure in which the owner occupies one of the units as the owner’s primary residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit. 
  • Deed Restricted Housing 
  • New construction housing with Certificate of Occupancy issued within 15 years of the current date.
  • Housing subject to a local Rent Control/Stabilization ordinance (e.g. City of Santa Ana) 
  • Dormitories owned and operated by an institution of higher education, or a kindergarten or school (Grades 1 -12 inclusive)
  • Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property. 
  • Single-family owner-occupied residences, including a residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit are excluded from the "Just Cause" provisions of AB 1482.

Please note, rental housing providers in Santa Ana are subject to a more restrictive rent stabilization and just cause eviction law and are on a different calendar for annual rent increases. If you own or operate rental housing in Santa Ana, click HERE.

For additional information or guidance on AB 1482, click HERE or contact AAOC at (714) 245-9500.