Salem renters face a higher rent cap in 2027 after the Oregon Department of Administrative Services set the maximum allowable increase at 10%.

The state published the figure Sunday, Sept. 27, up from 9.5% for 2026. The cap applies to most standard residential tenancies under Oregon's rent stabilization law, which the state enacted in 2019.

The 10% ceiling is the highest the law allows. Under the formula in ORS 90.324, the annual cap is the lesser of 10% or 7% plus the Consumer Price Index. Because the CPI-based calculation reached 10% or above, the statutory ceiling applied.

The 2027 figure matches the cap set for 2025, which was also 10%. The 2026 cap dipped to 9.5%.

What it means in Salem

Salem remains the most affordable of Oregon's three largest rental markets. Median rent was $1,291 to $1,326 as of October 2025, according to Apartment List data analyzed by the Professional Association of Realtors of Oregon. Year-over-year rent growth at that time was 1.1%.

But the legal cap matters because some landlords push increases to the maximum regardless of market conditions. Nicole Utz, director of the Salem Housing Authority, told commissioners in April that the agency was scrutinizing rent hikes more closely.

"What we're seeing is that we're still getting a lot of landlords trying to go to the maximum dollar amount without having the comparables in the market to suffice that," Utz said during an April 30 presentation on rising voucher costs.

As of April 2026, the housing authority's average per-unit assistance cost had surged to about $1,100, up from $600 to $700 a few years earlier. The agency serves more than 9,000 Salem residents through its voucher program.

Who is covered and who is not

The cap applies to rental properties whose first certificate of occupancy was issued 15 or more years ago. Buildings that received their certificate after 2012 are exempt, meaning landlords of newer apartments can raise rent without a percentage limit.

Landlords subject to the cap must give tenants at least 90 days' written notice before an increase takes effect. No increase is allowed during the first year of a tenancy, and landlords may raise rent only once in any 12-month period.

A landlord who exceeds the cap faces penalties of three months' rent plus actual damages, according to a summary of Oregon landlord-tenant law by Uptown Property Management.

For manufactured dwelling parks and marinas with more than 30 spaces, a separate, lower cap of 6% applies in 2027, according to the DAS Office of Economic Analysis.

What comes next

The 10% cap takes effect Jan. 1, 2027. Tenants with questions about rent increases or landlord-tenant rights can contact Oregon Housing and Community Services.