California's Rent Cap (AB 1482): What Investors Can Actually Raise
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
California's statewide rent cap is simpler than the myths around it and stricter in one place most landlords miss: the single-family exemption you think you have usually depends on a notice you never sent.
How much can I raise rent on my California rental in 2026?
Under AB 1482, the annual increase is capped at 5% plus your region's CPI, or 10%, whichever is lower. It is never a flat 10%. For the cycle beginning August 1, 2026 the cap is 8.7% in the LA region and 8.8% in San Francisco-Oakland-Hayward, and the percentage resets every August 1 as new CPI data lands. Increases are limited to two in any 12-month period and cannot exceed the annual cap in total. Because the exact number is regional and resets yearly, we point clients to the California Apartment Association's current CPI figures for their specific metro before setting an increase, and we treat any figure on this page as dated. This is lender-guideline and general information, not legal advice; confirm your increase with a California attorney or your property manager.
Is my single-family rental exempt from AB 1482?
Maybe, and the part that trips up most owners is the second half of the test. Ownership is only the first requirement: to claim the single-family or condo exemption, the owner must be a natural person, a trust with only natural-person beneficiaries, or an LLC where every member is a natural person, so a REIT, a corporation, or an LLC with any corporate member never qualifies. The second requirement is procedural and unforgiving: you must have given the tenant the exact statutory notice at lease signing (or by the 2020 deadline for tenancies that predate it). Skip that notice and the unit is covered by the rent cap and just-cause rules regardless of who owns it. Landlords lose the exemption this way constantly, because the ownership test feels like the whole test. Have a California attorney confirm your notice language and timing.
Are new-construction rentals exempt from the rent cap?
Yes, for 15 years from the certificate of occupancy, on a rolling basis. A building keeps the exemption until it crosses the 15-year mark, at which point AB 1482 begins to apply. Because the window rolls forward every year, the qualifying cutoff moves too, so confirm your building's certificate-of-occupancy date rather than relying on a hardcoded year. For an investor buying newer stock, this exemption is a genuine advantage: full market-rate flexibility on rent for the covered period, and no just-cause constraint until the window closes.
Does AB 1482 override Los Angeles's RSO or other local rent control?
No. Where a unit is already covered by a stricter or more protective local rent-control ordinance, the stricter local ordinance controls. The LA Rent Stabilization Ordinance (most pre-October-1978 multi-unit buildings), San Francisco, Oakland, Berkeley, and Santa Monica all set their own, usually lower, annual increase percentages and just-cause standards, and those govern the covered units. AB 1482 is the statewide floor and ceiling that applies in cities and units without a stricter local rule. The practical instruction: before you model rent growth, find out whether the unit sits under a local ordinance, because the stricter of the two applies. This is general information; a California attorney or the local rent board confirms coverage.
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Frequently asked questions
Is my single-family rental exempt from AB 1482?
Only if two things are true: the owner is a natural person (or an LLC with all natural-person members, or a qualifying trust), and you gave the tenant the exact statutory notice at lease signing. Ownership structure alone is not enough. Skip the notice and the unit is covered by the rent cap regardless of who owns it. Confirm your notice with a California attorney.
How much can I raise rent on my California rental in 2026?
The AB 1482 cap is 5% plus regional CPI, or 10%, whichever is lower. For the cycle beginning August 1, 2026 that works out to 8.7% in the LA region and 8.8% in San Francisco-Oakland-Hayward. It resets each August 1, and you can raise rent at most twice in 12 months up to the annual cap. Check your metro's current figure before setting an increase.
Are new-construction rentals exempt from California's rent cap?
Yes. New buildings are exempt from the AB 1482 rent cap and just-cause rules for 15 years from the certificate of occupancy, on a rolling basis. Once a building passes that 15-year mark, the cap begins to apply. Confirm your building's certificate-of-occupancy date rather than assuming a fixed cutoff year, since the window moves forward annually.
Does California's AB 1482 override Los Angeles's own rent control (RSO)?
No. Where a stricter local ordinance already covers the unit, the stricter local ordinance controls: LA's RSO, San Francisco, Oakland, Berkeley, and Santa Monica all set lower increases than the state cap for their covered units. AB 1482 applies where no stricter local rule exists. Before modeling rent growth, confirm whether the unit sits under a local ordinance.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. California rent-cap percentages, city and county STR rules, tax figures, and litigation status change; verify current requirements with the city or county, your CPA, or a California real estate attorney before you buy. Loans are subject to buyer and property qualification.