2025-2026 Rent Increase Limits: Southern CA Local Update
Published July 18, 2025 • Expert Care, Tailored Solutions
2025-2026 Rent Increase Limits: Southern CA Local Update
California's statewide rent control law, AB 1482, limits how much rent can be increased each year for many non-exempt residential properties. For Southern California owners, the allowed increase depends on the relevant Consumer Price Index, but local rent stabilization programs can impose lower caps than the statewide baseline.
Before raising rent, confirm three things: whether the unit is covered, whether a stricter local ordinance applies, and which notice period your increase requires.
1. Statewide Limits Under AB 1482
AB 1482 generally caps annual rent increases for covered units at 5% plus CPI, with an overall maximum of 10% in any 12-month period. For increases taking effect between August 1, 2025 and July 31, 2026, the regional CPI figures commonly used in Southern California produce the following statewide cap examples:
- Orange County / Los Angeles-Long Beach-Anaheim region: CPI of 3.0%, producing an AB 1482 cap of 8.0%.
- Riverside County / Riverside-San Bernardino-Ontario region: CPI of 2.5%, producing an AB 1482 cap of 7.5%.
Important: These statewide limits do not override a stricter local ordinance. If your property is in a city with its own rent stabilization program, the local rule may control.
2. Stricter Local Rent Caps
Some Southern California cities have local rent stabilization systems that impose lower allowable increases than AB 1482. In those cases, owners must evaluate the local ordinance first before relying on the statewide cap.
Santa Ana
Santa Ana's Rent Stabilization Ordinance sets the annual increase at the lower of 3% or 80% of CPI. For the period from September 1, 2025 through August 31, 2026, the City of Santa Ana announced an allowable rent increase of 2.42%.
City of Los Angeles
For units subject to the City of Los Angeles Rent Stabilization Ordinance, the annual allowable increase effective July 1, 2025 through June 30, 2026 is 3%. Owners should also confirm any city-specific surcharge and notice rules that may apply to the property.
Pasadena
Pasadena's Rental Housing Board set the 2025-2026 Annual General Adjustment at 2.25% for covered rent-stabilized units, effective October 1, 2025 through September 30, 2026. That means Pasadena's current local cap for that cycle is lower than the statewide AB 1482 baseline for many properties.
Local ordinance reminder: Not every property in these cities is covered. Always verify whether the unit is rent-stabilized, exempt, or subject only to statewide rules before sending a notice.
3. Notice Requirements for Rent Increases
The amount of notice required for a rent increase depends on the size of the increase and, in some cases, the program or tenancy type involved.
- 30-day notice: Generally used for rent increases of 10% or less.
- 60-day notice: May apply in certain subsidized or program-specific situations, including some government-assisted tenancies.
- 90-day notice: Commonly associated with increases of more than 10% for properties not limited by AB 1482 or another stricter cap.
Even when state law sets the general timeline, local ordinances may require additional language, disclosures, or filing steps. Owners should confirm both state and local requirements before delivering the increase notice.
4. Who Is Commonly Exempt?
Not every property is covered by AB 1482. Common exemptions can include:
- Single-family homes or condominiums not owned by a corporation, REIT, or certain business entities, when the required exemption notice has been properly provided.
- Buildings generally constructed within the last 15 years on a rolling basis.
- Owner-occupied duplexes in qualifying situations.
Exemptions can be highly fact specific. Ownership structure, required notices, and local law all matter. A property that appears exempt under state law may still need review under a city-specific ordinance.
5. 2025-2026 Summary Table
The chart below summarizes common reference points for Southern California owners. These figures should be treated as a planning guide, not as a substitute for property-specific legal review.
| Region / City | 2025-2026 Rent Cap | Cap Type | Effective Window |
|---|---|---|---|
| Orange County | 8.0% | AB 1482 | Aug. 1, 2025 - Jul. 31, 2026 |
| Los Angeles County (many covered non-local units) | 8.0% | AB 1482 | Aug. 1, 2025 - Jul. 31, 2026 |
| Riverside County | 7.5% | AB 1482 | Aug. 1, 2025 - Jul. 31, 2026 |
| Santa Ana | 2.42% | Local Rent Stabilization Ordinance | Sep. 1, 2025 - Aug. 31, 2026 |
| City of Los Angeles | 3.0% | RSO | Jul. 1, 2025 - Jun. 30, 2026 |
| Pasadena | 2.25% | Local Rent Stabilization | Oct. 1, 2025 - Sep. 30, 2026 |
| Costa Mesa | 8.0% | AB 1482 | Aug. 1, 2025 - Jul. 31, 2026 |
6. Practical Next Steps Before You Raise Rent
- Confirm coverage: Determine whether the unit is covered by AB 1482, a local ordinance, both, or neither.
- Check the timing window: Match the proposed effective date to the correct CPI cycle or local adjustment period.
- Review prior increases: Make sure the property has not already taken the maximum increase allowed during the last 12 months.
- Prepare the right notice: Use the correct state and local notice language, service method, and timing.
- Document your file: Keep a clear rent history and support for the calculation used.
Owner guidance: For the most accurate application of rent caps, always verify the property's location, exemption status, local ordinance coverage, and the CPI window tied to the effective date of the increase.
Reach out to EJ Properties to discuss your specific rental situation, notice timing, or local ordinance questions.
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