AB 1482 RENT INCREASE CAP RISES TO 8.7%

September 7, 2026 0 Comment Category: Estate Law

New Los Angeles Area Limit Effective August 1, 2026

Each year, the allowable rent increase under California’s Tenant Protection Act, commonly known as AB 1482, is adjusted based on changes in the cost of living.

For rental properties in the Los Angeles area that are subject to AB 1482, the annual rent increase cap has increased from 8.0% to 8.7%, effective August 1, 2026.

The new limit applies to qualifying rent increases that take effect through July 31, 2027.

Importantly, the 8.7% cap does not automatically apply to every rental property. Properties subject to local rent stabilization ordinances may have lower allowable increases.

 

WHAT PROPERTY OWNERS SHOULD KNOW

Beginning August 1, 2026, the maximum annual rent increase under AB 1482 is 8.7% for covered rental properties in the Los Angeles area.

The new cap is calculated using the AB 1482 formula:

5% + 3.7% CPI = 8.7%

State law limits the annual increase to 5% plus the applicable CPI, or 10%, whichever is lower.

Property owners should confirm that their property is covered by AB 1482 and determine whether a local rent stabilization ordinance imposes a lower limit before serving a rent increase notice.

WHAT THE DIFFERENCE LOOKS LIKE

Consider a 10 unit property with an average monthly rent of $2,000 per unit:

Current Annual Rent Roll
$240,000

Annual Rent Roll at 8.0% Increase
$259,200

Annual Rent Roll at 8.7% Increase
$260,880

Additional Annual Income Under the New Cap
$1,680

Although the difference between an 8.0% and 8.7% increase may appear modest on an individual unit, the financial impact can become more significant across larger portfolios or properties with higher rent rolls.

BEFORE INCREASING RENT

Property owners should first determine:

• Whether the property is subject to AB 1482
• Whether a local rent stabilization ordinance applies
• The maximum increase permitted by the applicable jurisdiction
• Whether all required notices and timing requirements have been satisfied

Local regulations may provide greater tenant protections and impose rent increase limits below the statewide AB 1482 cap.