New AB 1482 Rent Increase Limits Announced for 2026–2027

As many California rental housing providers know, the allowable rent increase under AB 1482 is updated annually based on inflation figures published by the Consumer Price Index (CPI).

The new CPI figures for rent increases taking effect between August 1, 2026 and July 31, 2027 have now been released, resulting in a higher allowable increase than many owners experienced over the past year. For properties located in the Los Angeles, Orange, Riverside, San Bernardino, and Ventura County regions, the CPI increase was reported at approximately 3.7%, bringing the maximum allowable AB 1482 rent increase to 8.7% (5% + CPI).

A Quick Refresher on AB 1482

California's Tenant Protection Act (AB 1482) limits annual rent increases on covered properties to: 5% + Local CPI, or 10%, whichever is lower. The law also includes statewide "Just Cause" eviction requirements for many residential rental properties.

What This Means for Apartment Owners

The previous allowable increase for many Southern California properties was significantly lower due to reduced inflation figures. As inflation has increased over the past year, the new cap allows owners additional flexibility to offset rising operating expenses such as:

• Insurance premiums
• Property taxes
• Utility costs
• Labor expenses
• Maintenance and repair costs
• Regulatory compliance requirements
• 
  

For owners who have delayed rent adjustments over the past several years, now may be an appropriate time to review rents and determine whether units remain below market.

Important Reminder: Not Every Property Is the Same

Before implementing any rent increase, owners should verify:

• Whether their property is subject to AB 1482.
• Whether a local rent control ordinance applies.
• Whether any exemptions exist.
• Proper notice requirements.
• Prior rent increases within the past 12 months.
• 
  

Many cities throughout California have local regulations that may be more restrictive than state law.

Planning Ahead

As we move into the second half of 2026, apartment owners should begin reviewing rent rolls, operating expenses, and upcoming lease renewals. A proactive strategy can help ensure rental income keeps pace with increasing ownership costs while remaining compliant with state and local regulations.

If you are unsure whether your property is covered by AB 1482 or want help evaluating your current rents, our team is happy to point you in the right direction.

Questions about AB 1482 or local rent control? Contact Shant Sherbetdjian at Southern California Apartment Group for guidance and resources designed specifically for apartment owners throughout Southern California.

Shant Sherbetdjian

Realtor/Apartment Specialist
Team Southern California Apartment Group

Office: 626-657-8150