Short answer: most California landlords can raise rent by 5% plus the local rate of inflation, capped at 10% total, once every 12 months. For the year starting August 1, 2026, that works out to 8.8% in the Bay Area and 8.6% here in the Central Valley. Keep reading and we'll break down exactly how that math works, when it applies to you, and the exceptions that trip landlords up every year.
What Is AB 1482 (The Tenant Protection Act)?
AB 1482, California's statewide Tenant Protection Act, has been the law since 2020. It does two big things: it caps how much you can raise rent each year, and it requires a valid "just cause" before you can end a tenancy on most rentals. If a property is older than 15 years and isn't otherwise exempt, this law applies to it, no matter which city it's in.
The Simple Formula: 5% + CPI, Capped at 10%
Here's the math in plain English: take 5%, add your region's Consumer Price Index (CPI) change from the past year, and that's your maximum allowed increase, unless that number is more than 10%, in which case 10% is your ceiling. The CPI figure is measured every April by the federal Bureau of Labor Statistics, and the new cap takes effect each August 1.
How Much Can You Raise Rent in 2026?
For increases taking effect between August 1, 2026 and July 31, 2027, here's what that formula works out to in M&S's service areas:
- Central Valley (Stockton, Manteca, Tracy, Lathrop, Modesto, Lodi): 8.6% max, California's statewide rate for counties outside a major metro CPI region.
- Bay Area (Milpitas, Fremont, San Jose, and the rest of the San Francisco-Oakland-Hayward CPI region): 8.8% max.
Quick example: a $2,000/month rental in the Central Valley can go up by as much as $172, to $2,172. A $2,700/month rental in the Bay Area can go up by as much as $237.60, to $2,937.60, as long as it's been at least 12 months since the last increase.
Watch Out for Local Rent Control
Some cities layer their own, stricter rent control on top of the state law, and the local rule wins. Oakland's cap is just 2.3% and Berkeley's is 1.0% for this same period, far below the AB 1482 statewide number. Before you send a notice, always check whether your specific city has its own ordinance.
Who's Exempt From the Rent Cap?
A handful of property types fall outside AB 1482's rent cap, though most still have to follow the just-cause eviction rules:
- Single-family homes and condos not owned by a corporation, REIT, or an LLC with a corporate member, as long as tenants received the required exemption notice in their lease.
- New construction with a certificate of occupancy issued in the last 15 years.
- Owner-occupied duplexes, where the owner lives in one of the two units.
Not sure if your rental qualifies? It's worth double-checking, since getting this wrong is one of the most common (and costly) landlord mistakes we see.
How Much Notice Do You Have to Give?
- 30 days' notice if the increase is 10% or less.
- 90 days' notice if the increase, combined with any other increase in the last 12 months, is more than 10%.
- Only one increase allowed every 12 months, no matter how far below the cap you stayed.
Quick FAQ
Can I raise rent more than once a year in California?
No. AB 1482 allows only one rent increase per 12-month period, even if you stayed well under the cap last time.
Does AB 1482 apply to my rental property?
Most likely, yes. It covers the vast majority of California rentals older than 15 years. Check the exemptions above if you're unsure.
What happens if I raise rent above the legal limit?
Tenants can sue for the difference, and you may owe penalties and legal fees on top of refunding the overage. It's a costly mistake that's completely avoidable with the right math and paperwork.
Let M&S Handle the Math
Rent increases look simple until you're staring at a CPI table trying to figure out which region applies to your property. M&S Property Management calculates, documents, and delivers every rent increase notice correctly and on time for owners across the Central Valley and Bay Area, so you never have to worry about over-charging, under-charging, or missing a deadline.
Contact us to find out what your rental could be earning.
This article is general information, not legal advice. Rent control rules can vary by city and change over time, so check with a local attorney or your property manager before sending a rent increase notice.
