California's rent cap for August 2026 through July 2027, explained
Updated November 1, 2026. Written for California owners, workers and freelancers; not legal or tax advice.
If you own a covered rental in California, the most you can raise the rent in any 12 months is set by the Tenant Protection Act of 2019 (AB 1482, now Civil Code §1947.12). The formula is 5% plus the regional change in the cost of living, capped at 10%. Because inflation differs by region, the cap differs by county, and it resets every August 1.
The caps, by county
| Area (counties) | Increase takes effect 8/1/2025–7/31/2026 | Increase takes effect 8/1/2026–7/31/2027 |
|---|---|---|
| Los Angeles Area: Los Angeles, Orange | 8% | 8.7% |
| Riverside Area: Riverside, San Bernardino | 7.5% | 8.1% |
| San Diego Area: San Diego | 8.8% | 8.2% |
| San Francisco Area: Alameda, Contra Costa, Marin, San Francisco, San Mateo | 6.3% | 8.8% |
| All other counties | 7.7% | 8.6% |
The column that applies is decided by the date the increase takes effect, not the date you send the notice. A notice served in late June 2026 for an increase effective August 1, 2026 uses the 2026–27 column.
Where the numbers come from
For increases effective on or after August 1 of a year, the statute uses the change in the Consumer Price Index (CPI-U) from April of the prior year to April of that year, rounded to the nearest tenth of a percent (§1947.12(g)(3)). Los Angeles/Orange, Riverside/San Bernardino, San Diego and the five Bay Area counties each have their own federal CPI-U. Every other county uses the statewide California CPI from the Department of Industrial Relations. The Attorney General publishes the resulting chart, but notes that the statute, not the chart, is the law.
San Diego is an interesting case this year: its cap fell from 8.8% to 8.2% because local inflation cooled, while the Bay Area's jumped from 6.3% to 8.8%.
The rent you start from
Apply the percentage to the lowest gross monthly rent charged at any time in the 12 months before the increase takes effect. Discounts, concessions or credits the tenant accepted don't count toward that number. That's why the statute requires the gross rent and any concessions to be listed separately in the lease.
Worked example (San Diego)
A tenant in Chula Vista has paid $2,500 a month all year. The new rent will take effect December 1, 2026.
- Cap for San Diego County, 8/1/2026–7/31/2027: 8.2%
- $2,500 × 8.2% = $205
- Maximum new rent: $2,705
If you raised the rent by 3% in June 2026 (to $2,575), the lowest rent in the prior 12 months is still $2,500, so the December increase can only take the rent to $2,705 in total. You can raise rent in up to two increments in a 12-month period, but the combined increase can't exceed the cap.
Run your own numbers in the free calculator →
Five things that trip landlords up
- Local rent control wins if it's lower. Los Angeles, San Francisco, Oakland, Berkeley, Santa Monica and other cities cap older units below the state number. The Attorney General's page links to the list.
- Exempt doesn't happen automatically. A single-family home owned by an individual is exempt only if the tenant got the exact statutory notice. See the exemption checklist.
- New tenants reset the clock. When no tenant from the prior tenancy remains, you can set the initial rent freely (§1947.12(b)). The cap applies to later increases.
- Sublets can't exceed the cap. A tenant can't sublet for more than the allowed rent (§1947.12(c)).
- Overcharges are expensive. Since April 2024 a tenant can sue for the excess, attorney's fees and, for willful violations, up to three times the overcharge, within three years (§1947.12(k)). The Attorney General and city attorneys can also enforce it.
How long does this last?
Section 1947.12 is scheduled to be repealed on January 1, 2030, unless the Legislature extends it.
Managing more than one unit? The California Landlord Compliance & Rent-Cap Kit keeps a 12-month rent history per unit and flags increases that look over the statewide cap.