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California Landlord Compliance · Raise the rent

Los Angeles RSO Rent Increase Rules 2026: 1%-4%

Los Angeles has changed how it calculates the annual rent increase allowed under its Rent Stabilization Ordinance, moving from 100% of CPI to 90% of CPI and narrowing the range from 3%-8% down to 1%-4%. The change rolled out in two separate steps rather than all at once, and the new formula itself doesn't govern a cycle until July 1, 2026.

Written by Platuni

The short answer

  1. 1.The RSO's annual increase formula moved from 100% of CPI to 90% of CPI, and the allowable range narrowed from 3%-8% to 1%-4%.
  2. 2.Two related surcharges were eliminated immediately, effective February 2, 2026: a 1% add-on for utilities and a 10% add-on for an additional dependent.
  3. 3.The new 90%-of-CPI formula itself first governs the cycle beginning July 1, 2026, not the current one.
  4. 4.The cycle running July 1, 2025 through June 30, 2026 still uses the old formula and remains 3%.
  5. 5.As of this writing, the exact percentage within the new 1%-4% range for the 2026-27 cycle hadn't been published.
  6. 6.RSO coverage turns on a building's construction date, first built on or before October 1, 1978, with several categories of units exempt regardless of that date.

This covers

  • · Multi-unit residential buildings first built on or before October 1, 1978
  • · Tenancies inside the City of Los Angeles subject to the Rent Stabilization Ordinance
  • · Landlords and tenants navigating the transition between the old and new formulas through 2026

Usually exempt

  • · Single-family homes, unless two or more units sit on the same parcel
  • · Condominiums and townhomes where the tenancy began after December 31, 1995
  • · Owner-occupied units
  • · Buildings first built after October 1, 1978
  • · Hotel or motel rooms occupied 30 days or less
  • · Units granted a Luxury Exemption

1. Two changes, two different dates

The RSO amendment didn't take effect all at once. Two provisions were eliminated immediately on February 2, 2026: the additional 1% increase previously allowed when a landlord pays for gas and/or electricity, and the additional 10% increase previously allowed when a dependent was added to a tenancy. Both of those surcharges are gone as of that date, regardless of which increase formula otherwise applies.

[Cite: LAHD, Renter Protections]

The core formula change, cutting the calculation from 100% of CPI to 90% and narrowing the range, is a separate matter with a later date. It applies starting July 1, 2026, meaning it first controls the annual cycle that begins on that date rather than retroactively touching the cycle already underway.

[Cite: LAHD, RSO Rent Increase Calculator]

2. What actually changed in the formula

Under the prior rule, LA calculated the annual allowable increase as 100% of the change in the regional Consumer Price Index, bounded by a floor of 3% and a ceiling of 8%. The amended formula instead uses 90% of CPI, with a floor of 1% and a ceiling of 4%. Both the multiplier and the range moved down, which is why property owners and tenant advocates alike have described this as a meaningfully smaller allowable increase going forward compared to the prior formula.

[Cite: LAHD, RSO Rent Increase Calculator]

Los Angeles County has its own, separate rent stabilization rules for unincorporated areas, and those are not affected by this change to the City's ordinance. A landlord should confirm which jurisdiction, city or county, actually governs a specific address before applying either formula.

3. Why the current cycle is still 3%

The cycle that started July 1, 2025 and runs through June 30, 2026 was already set under the old formula before the amendment passed, so it remains at 3%. Landlords with covered units shouldn't treat this current 3% figure as evidence that the new formula hasn't taken hold. It reflects a cycle that predates the July 1, 2026 effective date, not the ongoing state of the rule.

[Cite: LAHD, RSO Rent Increase Calculator]

4. Why the 2026-27 percentage isn't published yet

As of this writing, LAHD hasn't published the specific percentage that will apply to the cycle beginning July 1, 2026. That's consistent with how these figures typically get calculated: the CPI data used to compute the number for a given cycle isn't finalized until shortly before that cycle starts, so the department publishes the final figure closer to the effective date rather than a year or more in advance. Property managers who need the exact number for the 2026-27 cycle should check LAHD's rent increase calculator again as the date approaches rather than assuming any percentage currently listed for that period is final.

[Cite: LAHD, RSO Rent Increase Calculator]

What's confirmed now is the mechanism and the range, 90% of CPI, bounded between 1% and 4%. What isn't confirmed yet is where inside that range the actual 2026-27 figure will land.

5. What buildings the RSO actually covers

Coverage under the RSO depends on when a building was first constructed. The ordinance applies to residential rental buildings first built on or before October 1, 1978. A property manager unsure whether a specific building falls on the covered side of that date can check the building's records through the City's ZIMAS parcel information system rather than relying on an assumption.

[Cite: LAHD, RSO Overview]

Units built after that date generally fall instead under the City's separate Just Cause Ordinance, which governs eviction protections but doesn't impose the RSO's annual increase cap.

[Cite: LAHD, Renter Protections]

6. The main exemptions, even for pre-1978 buildings

Construction date isn't the only factor. Several categories of units are exempt from RSO rent-increase coverage even when the surrounding building predates October 1, 1978. Single-family homes are exempt, unless two or more units sit on the same legal parcel. Condominiums and townhomes are exempt if the current tenancy began after December 31, 1995. Units occupied by the owner aren't subject to the rent-increase cap. Hotel and motel rooms occupied 30 days or less fall outside RSO coverage as well, and a landlord can apply for a Luxury Exemption for qualifying units under separate program rules.

[Cite: LAHD, RSO Overview]

An exemption from the RSO's local cap doesn't necessarily mean there's no limit at all. Many exempt units, including single-family homes and condos with post-1995 tenancies, are still covered by California's statewide Tenant Protection Act, which caps annual increases at 5% plus local inflation, or 10%, whichever is lower, for tenants who've occupied the unit for 12 months or more. A landlord managing an RSO-exempt unit should check whether the state cap applies rather than assuming the increase is unrestricted.

[Cite: California Civil Code section 1947.12, Tenant Protection Act]

7. Notice requirements

Notice periods for rent increases in Los Angeles follow California's statewide rule rather than a separate City-specific schedule. A standard increase requires 30 days' written notice. If the increase, alone or combined with other increases in the same 12-month period, exceeds 10%, the landlord must give 90 days' written notice instead.

[Cite: LAHD, Renter Protections]

For an increase inside the RSO's 1%-4% range once the new formula applies, the standard 30-day notice period will apply, since a figure in that range falls well under the 10% threshold that triggers the longer notice requirement.

Reading this as a tenant?

If your unit is in a building first built on or before October 1, 1978, and you don't fall into one of the exempt categories, your rent increase is capped under the RSO. For increases taking effect through June 30, 2026, that cap is 3%. Starting July 1, 2026, the cap moves to somewhere within a 1%-4% range under the new formula, though the exact figure for that cycle wasn't published as of this writing. If your unit is exempt from RSO, ask whether California's statewide 5%-plus-inflation cap applies instead of assuming there's no limit.

Sources and review

  1. 1.Los Angeles Housing Department (LAHD), Renter Protections.
  2. 2.Los Angeles Housing Department (LAHD), RSO Rent Increase Calculator.
  3. 3.Los Angeles Housing Department (LAHD), RSO Overview.
  4. 4.California Civil Code section 1947.12, Tenant Protection Act statewide rent cap.

Substantive review means an editor re-checked each cited section against the current code, not that the page was re-saved. Corrections: compliance@platuni.com.

Frequently asked questions

Is the new 90%-of-CPI formula already in effect?

Not for the current cycle. It takes effect July 1, 2026, and will first apply to the cycle that begins on that date. The cycle running through June 30, 2026 still uses the old 100%-of-CPI formula and remains at 3%.

What happened to the utility and dependent surcharges?

Both were eliminated immediately, effective February 2, 2026: the additional 1% increase for landlord-paid utilities and the additional 10% increase for an added dependent. Those eliminations happened before, and separately from, the core formula change.

What percentage will apply for the cycle starting July 1, 2026?

That hasn't been published yet as of this writing. The formula and range, 90% of CPI within a 1%-4% band, are confirmed, but the specific figure depends on CPI data that LAHD typically finalizes closer to the cycle's start date.

Does the RSO cover my building?

Only if it was first built on or before October 1, 1978, and it doesn't fall into one of the specific exemptions (single-family homes, certain condos, owner-occupied units, hotel/motel short stays, or Luxury Exemption units). Buildings built after that date generally fall under the City's Just Cause Ordinance instead.

If my unit is exempt from RSO, is my rent increase unlimited?

Not necessarily. Many RSO-exempt units, including single-family homes and post-1995 condo tenancies, are still covered by California's statewide Tenant Protection Act, which caps increases at 5% plus local inflation, or 10%, whichever is lower.

How much notice does a tenant need before a rent increase?

30 days for a standard increase, or 90 days if the increase exceeds 10% either alone or combined with other increases in the same 12 months. This follows California's statewide notice rule rather than a separate RSO-specific schedule.