California Rent Cap (AB 1482): How Much Rent Can Go Up

California Civil Code § 1947.12 (the Tenant Protection Act, AB 1482) limits rent increases on most residential rentals to 5% plus the local change in the cost of living, or 10%, whichever is lower, over any 12-month period. The rent can go up in no more than two steps in that period if the same tenant stays. In San Diego County the cap is 8.2% for increases effective August 1, 2026 through July 31, 2027; other regions use their own CPI figure, so their cap differs.

At a glance

What the law says

The statute sets a ceiling on the total increase over any rolling 12-month window, not a once-a-year allowance. Three pieces work together.

The percentage. The cap is 5% plus "the percentage change in the cost of living," or 10%, whichever is lower (§ 1947.12(a)(1)). Because of the 10% ceiling, no covered unit can go up more than 10% in 12 months, however high inflation runs.

The base. The percentage applies to "the lowest gross rental rate charged for that unit at any time during the 12 months prior to the effective date of the increase." Discounts, incentives, concessions and credits that the tenant accepted are left out of that calculation, so a temporary discount does not lower the base. The lease must list the gross rent and any concessions separately.

The number of steps. "If the same tenant remains in occupancy of a unit," the rent "shall not be increased in more than two increments over that 12-month period" (§ 1947.12(a)(2)). Two smaller raises are allowed, but together they still cannot exceed the cap.

How the CPI figure is set. Section 1947.12(g) ties the cost-of-living figure to a regional Consumer Price Index. For San Diego County it is the CPI-U for the San Diego-Carlsbad area. For increases effective on or after August 1, the statute uses the April-to-April change, or March-to-March if no April figure is published, rounded to the nearest 0.1%.

The San Diego numbers, computed from Bureau of Labor Statistics data under that formula:

BLS publishes no April figure for San Diego, which is why the March-to-March change applies. If your rental is in another region, the same formula applies with that region's CPI, so the result will not be 8.2%.

A worked example (San Diego County)

Say the lowest rent charged in the 12 months before the increase was $3,000, and the increase takes effect September 1, 2026.

1. Maximum total increase: 8.2% of $3,000 = $246.
2. Maximum new rent: $3,246.
3. If the owner raises it to $3,120 first, a second increase within the same 12 months can bring it to no more than $3,246. A third increase in that window is not allowed while the same tenant remains.

You can test your own figures with the rent increase calculator.

Who it applies to

The cap covers residential rental housing unless one of the exemptions in § 1947.12(d) applies:

1. Deed-restricted or regulatory-restricted affordable housing, or housing subsidized under such an agreement.
2. Dormitories owned by a college or a K-12 school.
3. Housing under a local rent control ordinance that limits annual increases below the state cap.
4. Housing issued a certificate of occupancy within the previous 15 years. This is a rolling window, so a building ages into coverage.
5. A single-family home or condo (property "alienable separate from the title to any other dwelling unit"), only if both of these are true: the owner is not a real estate investment trust, a corporation, or an LLC with at least one corporate member; and the tenants received written notice using the exact statutory statement. For tenancies started or renewed on or after July 1, 2020, that notice must be in the rental agreement.
6. An owner-occupied duplex where the owner lived in one unit when the tenancy began and still does, and neither unit is an ADU or JADU.

The single-family exemption is the one owners most often get wrong. It is not automatic. The lease must contain this statement, word for word:

"This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation."

The same statement also exempts the home from the just-cause eviction rules in Civil Code § 1946.2.

New tenancies. When a unit turns over and no prior tenant remains, the owner may set the starting rent freely (§ 1947.12(b)). The cap then applies to later increases. A tenant may not sublet for more than the rent the law allows (§ 1947.12(c)).

What owners should do

1. Decide whether the property is covered. Check the certificate of occupancy date, the ownership entity, and whether the lease contains the exemption statement exactly as written.
2. If you rely on the single-family exemption, put the statutory statement in every new or renewed lease. A paraphrase does not satisfy the statute.
3. If the property is covered, give tenants the § 1946.2(f) notice that starts "California law limits the amount your rent can be increased." See required lease disclosures.
4. Find the base. Look back 12 months from the planned effective date and take the lowest gross rent charged, ignoring concessions.
5. Use the right CPI band. The figure is tied to the effective date of the increase, and the San Diego band changes each August 1.
6. Count increases. Keep a log of every increase per tenant so a third one never slips in within 12 months.
7. Give proper notice. Increases must follow Civil Code § 827: 30 days for 10% or less, 90 days above 10%, plus 5 calendar days if mailed within California. See rent increase notices.

What tenants should know

• You can check an increase yourself: find the lowest rent you were charged in the 12 months before the new rent takes effect, apply your region's cap, and compare.
• A lease cannot take these rights away. Any waiver of § 1947.12 is void (§ 1947.12(l)).
• If you are charged more than the cap allows, the statute lets you seek an injunction and the amount overcharged, and a court may award attorney's fees. If the owner acted willfully, damages can reach three times the overcharge (§ 1947.12(k)).
• The Attorney General and the city attorney or county counsel can also enforce the law. Claims must be brought within three years.
• If your lease contains the exemption statement and the owner is an individual, the cap may not apply to your home. Ask who owns the property if you are unsure whether the corporate-owner condition is met.

Step-by-step guides

For the practical side of this rule, see these guides in the California Rental Handbook:

• Lease Renewals and Automatic Renewal Clauses in California
• Fixed-Term Lease or Month-to-Month? Choosing a Lease Term in California
• When a California Lease Must Be Translated (Civil Code § 1632)

Local rules

Some California cities add local rent rules on top of state law, and housing under a local rent control ordinance that limits annual increases below the state cap is exempt from § 1947.12. Coronado has no local rent-control ordinance as of October 2026 (based on a review of its code's contents), so § 1947.12 is the rule there; see the Coronado Rental Guide. Other San Diego County cities may differ; check your city's municipal code.

Recent and upcoming changes

• AB 1157 did not pass. The 2025-26 bill would have cut the cap to the lesser of 2% plus CPI or 5%, removed the single-family exemption and removed the sunset. It failed in committee on January 13, 2026 and died on January 31, 2026.
• Emergency rent rule widens January 1, 2027. Penal Code § 396 bars rent increases over 10% for 30 days after a state or local emergency declaration (the period can be extended). Until December 31, 2026 it covers only leases with an initial term of one year or less. SB 1365 extends it to rental housing of any lease length from January 1, 2027.
• The cap expires January 1, 2030 unless the Legislature extends it.

Frequently asked questions

Is the California rent cap 10% for everyone?

No. The cap is 5% plus the regional CPI change, or 10%, whichever is lower. In San Diego County that works out to 8.2% for increases effective August 1, 2026 through July 31, 2027, and it was 8.8% the year before. The 10% figure is only the ceiling that applies when inflation is high.

Can a landlord raise rent twice in one year?

Yes, but no more than twice in any 12-month period while the same tenant remains in the unit, and the two increases together cannot exceed the cap measured from the lowest rent charged in the prior 12 months.

Does the rent cap apply to single-family homes?

Often, yes. A single-family home or condo is exempt only if the owner is not a REIT, a corporation, or an LLC with a corporate member, and the tenant received the exact statutory exemption statement, which must be in the lease for tenancies started or renewed since July 1, 2020. Without that statement, treat the home as covered.

Can rent go up any amount when a new tenant moves in?

Yes. When no prior tenant remains in occupancy, the owner may set the initial rent at any level. The cap then limits increases during that new tenancy.

When does the 8.2% figure change?

The San Diego County band runs from August 1 to July 31. The figure for increases effective August 1, 2027 onward will depend on the next year's San Diego CPI data, so recheck it before then. Other regions use their own CPI and their own result.

This is general information, not legal advice. Laws change; confirm the current text and your situation with a California attorney.

McKee Properties manages rentals from its Coronado office; contact us with questions about your property.

Sources

• Civil Code § 1947.12 (opens in a new tab)
• Civil Code § 1946.2 (opens in a new tab)
• Civil Code § 827 (opens in a new tab)
• BLS CPI-U, San Diego-Carlsbad (series CUURS49ESA0) (opens in a new tab)
• AB 1157 bill history (opens in a new tab)
• SB 1365 (2026) (opens in a new tab)
• Penal Code § 396 (opens in a new tab)

Verified October 19, 2026.