Buying a rental property in Oregon: tenant rules

How does the rent cap work?

Under ORS 90.323, for any tenancy other than week-to-week, a landlord may not raise the rent:

• during the first year of the tenancy,
• more than once in any 12-month period,
• without written notice at least 90 days before the increase takes effect, or
• by more than the yearly maximum.

The notice must state the amount of the increase, the new rent and the effective date. If the landlord claims an exemption, it must also state the facts that support it.

DAS, not the housing agency, now calculates and publishes the maximum each year, no later than September 30. The percentage is the lesser of 10% or 7% plus the CPI, defined by the statute as the September 12-month average change in the Consumer Price Index for All Urban Consumers, West Region.

Example: a tenant pays $2,000 a month. In 2026 the most a landlord could charge after one increase is $2,000 × 1.095 = $2,190. In 2027 the limit is $2,000 × 1.10 = $2,200.

A landlord who breaks the cap owes the tenant three months’ rent plus actual damages.

Which rentals are exempt from the cap?

ORS 90.323(5) lists two exemptions:

• A unit whose first certificate of occupancy was issued less than 15 years before the date of the rent increase notice.
• A unit regulated or certified as affordable housing by a federal, state or local government, when the rent change does not raise the tenant’s share or is required by program rules or a change in income.

Manufactured home parks follow separate rules in ORS 90.600. If you plan to buy a house or small building to rent out, check the certificate of occupancy date first: a newer building can be priced differently from an older one.

When can a landlord end a tenancy?

ORS 90.427 limits the reasons a landlord can end a month-to-month tenancy once a tenant has lived there for more than a year. During the first year of occupancy, the landlord may end it without cause with 30 days’ written notice.

After the first year, the landlord may end it only:

• For tenant cause, with the notice period set by the statute for that cause; or
• For a qualifying landlord reason, with at least 90 days’ written notice. The reasons are: demolishing or converting the unit to non-residential use; repairs that make the unit unsafe or unfit to live in; the landlord or an immediate family member moving in as a primary residence (if no comparable unit in the building is available); or a sale to a buyer who will live there as a primary residence, with written evidence of the offer.

The notice must give the reason and supporting facts. The landlord must also pay the tenant one month’s rent when delivering the notice, unless the landlord owns four or fewer residential units. When the unit is sold to a buyer who will occupy it, the notice can be shortened to 60 days if the landlord pays one month’s rent on top of the amount above.

A fixed-term lease that ends after the first year of occupancy becomes month-to-month unless the landlord has a qualifying reason or the parties sign a new term. A landlord who ends a tenancy in violation of these rules owes three months’ rent plus actual damages, and the tenant has a defense to an eviction action.

If the landlord lives on the same property and the building has no more than two units, the landlord may end a month-to-month tenancy without cause after the first year with 60 days’ notice.

What does Portland add?

Portland City Code 30.01.085 requires a landlord to pay relocation assistance to renters inside city limits who do not live with their landlord and have more than a week-to-week tenancy. Payment is triggered by a no-cause termination, non-renewal of a fixed-term lease, a qualifying landlord reason, a rent increase of 10% or more over 12 months, or a substantial change of lease terms. The amounts, from the Portland Housing Bureau (PHB):

Portland requires written notice at least 90 days before any rent increase or termination, and the notice must describe the tenant’s rights and the amount of relocation assistance. The landlord must tell PHB about each payment within 30 days. PHB lists exemptions, including landlords who share the unit with the tenant, owner-occupied duplexes, and regulated affordable units. A landlord who fails to comply is liable for up to three times the monthly rent, plus actual damages, the relocation assistance and attorney fees.

Note that a 10% increase, the maximum state law allows in 2027, falls within Portland’s trigger. PHB also says the 60-day sale notice added to state law in September 2025 does not apply inside Portland city limits, because the city’s own rules already apply.

What this means when you buy

• Ask for the leases and the dates of the last rent increases before you close. This shows how much room the cap leaves you.
• Moving into a tenanted home yourself is a qualifying reason, but only with the notice and payments described above. In Portland, relocation assistance may also apply.
• Check the certificate of occupancy date for the 15-year exemption.

For the buying side, see our guides to closing costs in Oregon and seller disclosure in Oregon, and our page on buying a home in Portland. This article describes the law, not your situation: for a specific lease or notice, contact PHB’s Rental Services Office or a licensed Oregon attorney.