The maximum is the lower of 5% plus the regional change in the cost of living, or 10%, applied to the lowest rent charged in the 12 months before the increase takes effect (Civ. Code § 1947.12(a)). For increases that take effect on or after August 1, 2026, the Attorney General’s chart shows 8.7% in the Los Angeles area, 8.1% in the Riverside area, 8.2% in San Diego County, 8.8% in the San Francisco area and 8.6% in all other counties.
What is the formula?
Maximum new rent = lowest rent in the prior 12 months × (1 + the cap). The cap is 5% plus the percentage change in the Consumer Price Index for All Urban Consumers, rounded to the nearest tenth of a percent, but never more than 10%. Rent discounts, incentives, concessions or credits that the owner offered and the tenant accepted are excluded when finding the lowest rent. Increases are limited to two increments in any 12 months while the same tenant remains in the unit (§ 1947.12(a)(2)).
Which CPI figure applies?
Section 1947.12(g) uses the Bureau of Labor Statistics CPI-U for the metro area where the property sits: the Los Angeles area (Los Angeles and Orange counties), the Riverside area (Riverside and San Bernardino), the San Diego area and the San Francisco area (Alameda, Contra Costa, Marin, San Francisco and San Mateo). Every other county uses the California CPI published by the Department of Industrial Relations.
The timing matters. For an increase that takes effect on or after August 1, the change is April of that year versus April of the year before (March where no April figure is published). For an increase that takes effect before August 1, the change is April of the prior year versus April of the year before that.
What are the caps for 2026 and 2027?
The Attorney General’s rent-cap chart publishes the maximum increase for each period. The CPI changes below match the BLS and DIR figures.
| Area | Effective Aug 1, 2025 – Jul 31, 2026 | Effective Aug 1, 2026 – Jul 31, 2027 |
|---|---|---|
| Los Angeles area | 8.0% | 8.7% |
| Riverside area | 7.5% | 8.1% |
| San Diego County | 8.8% | 8.2% |
| San Francisco area | 6.3% | 8.8% |
| All other counties | 7.7% | 8.6% |
What do the numbers look like in practice?
- San Diego, effective September 1, 2026. Lowest rent in the prior 12 months: $2,000. Cap: 5% + 3.2% = 8.2%. $2,000 × 1.082 = $2,164.00.
- Los Angeles, effective August 1, 2026. Lowest rent: $2,400. Cap: 5% + 3.7% = 8.7%. $2,400 × 1.087 = $2,608.80.
- San Francisco area, effective July 1, 2026. Lowest rent: $3,100. This date is before August 1, so the 6.3% cap applies (5% + 1.3%). $3,100 × 1.063 = $3,295.30.
- When the lowest rent in the past year was lower than today’s rent. If the tenant paid $2,000 eight months ago and $2,100 today after an earlier increase, the base is still $2,000. In San Diego, the ceiling is $2,000 × 1.082 = $2,164.00, so the next increase can take the rent from $2,100 to no more than $2,164.00, not to $2,100 × 1.082.
How much notice does the tenant need?
Civil Code § 827(b) requires at least 30 days’ written notice if the increase is 10% or less of the rent charged at any time in the prior 12 months, counting earlier increases in that period, and 90 days if it is more. A notice served by mail gets five extra days under Code Civ. Proc. § 1013. Our notices guide covers service methods.
When does the AB 1482 cap not control?
The cap does not apply to the categories in § 1947.12(d), such as qualifying single-family homes and condos with the required exemption notice, and housing with a certificate of occupancy issued in the previous 15 years. A stricter local ordinance, a lease term, or an emergency price cap under Penal Code § 396 can also limit the increase; the lowest limit controls. Our Maximum Rent Increase Wizard walks through the exemptions, checks active emergency orders for your county and shows the notice period. Read the AB 1482 guide for the just-cause side of the law.
Frequently asked questions
Does the 10% ceiling ever apply?
Only if 5% plus the CPI change is higher than 10%. With every 2026–27 figure between 8.1% and 8.8%, the ceiling does not bind right now.
Can I raise the rent twice in a year?
Yes, in no more than two increments over any 12 months for the same tenant, and the combined increases may not exceed the cap measured from the lowest rent in the prior 12 months.
What if the unit is vacant and I set a new rent?
For a new tenancy in which no tenant from the prior tenancy remains in possession, the owner may set the initial rent. The cap then applies to later increases (§ 1947.12(b)).
Where do I check my city’s own rent limit?
Start with the local rent stabilization chart on the Attorney General’s page. If your city has a stricter cap, that local limit controls.
Which official sources should I read?
- Civil Code § 1947.12 (leginfo)
- Civil Code § 827 (leginfo)
- Attorney General — rent increase caps
- BLS — San Diego area CPI release
- California DIR — California CPI change
This post is general information about California law as of Nov 13, 2026, and local ordinances may be stricter. Check the linked sources or consult a qualified attorney. Read the disclaimer.
Have a question about your situation, want tips, or need a referral? Email the CLRC team at [email protected]. We share general information, not legal advice, and we’re not a law firm.