ORHA - Oregon Rental Housing Association - If inflation (Consumer Price Index) is so high why is the maximum rent increase allowed so low?

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If inflation (Consumer Price Index) is so high why is the maximum rent increase allowed so low?

Wednesday, October 06, 2021 4:45 PM | Anonymous

By: Jason Miller, ORHA Legislative Director
October 4, 2021

Several members have asked us this question since the maximum rent increase for 2022 was announced in September. The max rent increase for renters in properties where the certificate of occupancy was issued more than 15 years ago is 7% plus the previous 12 month average, September to August, Consumer Price Index (CPI) for the West Region.

Although currently the CPI high around 5%, from September 2020 to February 2021 it was below 2% with a low of 1.4%. This brings the average for the year down to 2.9%. The 2022 maximum allowed rent increase will be 9.9%. If the certificate of occupancy for the property was issued in the last 15 years there is no cap on rent increases.

While some who have properties that are way under market may be disappointed that the 2.9% CPI average is less than current numbers, most Housing Providers will be able to adjust their rents to accommodate rising costs and taxes within the 9.9% maximum increase.

Caps on rent increases and other regulation has been tough on the housing industry. Oregon needs more legislators who understand that putting more regulations on small family owned businesses only hurts Oregonians. More than ever the Oregon Rental Housing Key Political Action Committee (ORH KEY PAC) needs your donations. Funds go to legislators who value and support our industry. Donate today!!!

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