Portland sets rent control increase for next year
Portland Sets 2026 Rent Increase Cap at 2.6 Percent
Portland landlords will be permitted to raise rents by up to 2.6 percent next year, a modest uptick from the 2.2 percent cap that applied in 2025, city officials announced this week.
The allowable increase is calculated under Portland's rent control ordinance, which ties annual rent hikes to an inflation-based percentage. Landlords may also seek additional increases for qualifying property improvements or when a unit turns over to a new tenant.
The city said it is mailing individual notices to the owners of Portland's 20,064 registered long-term rental units to inform them of the new limit.
Portland's rent control measure was approved by voters in 2020 and took effect in 2021. In the five years since, it has drawn sustained criticism from both ends of the spectrum.
The Portland Tenants Union has argued that the ordinance falls short of protecting renters, contending that the system is plagued by widespread noncompliance. Landlords, meanwhile, have countered that the capped increases are too small to keep up with rising costs, pointing to studies they say link the policy to higher property taxes and have prompted some property owners to sell and leave the city entirely.
City leaders have expressed their own frustrations with the law. Mayor Mark Dion has previously described the ordinance as poorly written. The City Council has held discussions about possible amendments, but no changes have been put to a vote.
Enforcement has been a persistent challenge. City staff have said the ordinance lacks a clear mechanism for collecting fines from landlords who violate rent board rulings. Portland took a step toward bolstering oversight this year by adding a second inspector to its housing code team.
That addition appears to be producing results. The number of units inspected has climbed sharply, from 3,911 in 2024 to 7,657 in 2025. In just the first half of 2026, inspectors have already visited 7,426 units, putting the city on pace for another significant year of enforcement activity.
Whether the increased inspections will translate into smoother compliance remains an open question, and one that both tenants and landlords are likely to watch closely as the new rent increase takes effect.
