LA Rent Cap Changes, Summer 2026: The New RSO Formula and the 8.7% State Cap

For Owners · Rent Rules · Published July 2026, revised October 2026 · 4 min read

Two rent caps changed within a few weeks of each other this summer, and they apply to different buildings. This page covers what changed and how to tell which one applies to a unit. For current rent, vacancy and mortgage-rate figures, each with its official source, see our Q4 2026 market update.

The two caps

• City of Los Angeles RSO: For rent-stabilized units, the allowable increase for July 1, 2026 through June 30, 2027 is 3%. The formula itself changed on July 1: increases are now 90% of CPI with a 4% maximum (down from 8%) and a 1% floor (down from 3%). The utility add-ons owners used to put on top of the annual increase ended on February 2, 2026.
• State cap (AB 1482, Civil Code 1947.12): For units covered by the statewide cap, the Los Angeles-area ceiling is 8.7% (5% plus regional CPI of 3.7%) for increases starting August 1, 2026 through July 31, 2027.

Which one applies

Inside the City of Los Angeles, a building of two or more units with a certificate of occupancy on or before October 1, 1978 is generally under the RSO, while newer, non-exempt buildings fall under the state cap. Outside city limits the local ordinance decides: Culver City, Beverly Hills and Inglewood each set their own limits, covered in our guides for Culver City, Beverly Hills and Inglewood. Applying the wrong cap can mean refunding rent, or defending the increase in court. Source-of-income protections and just-cause rules apply either way.

Disclaimer: This article is general information for California rental property owners from a California DRE-licensed property management company, not legal, tax or investment advice. Rent limits reset each year; confirm the current figure with the Los Angeles Housing Department or your city, and confirm anything legal with an attorney before you serve a notice.