Sacramento ordinance caps rent increases at 8.5%; new compliance resources posted
The city of Sacramento announced the initial rent cap under the Tenant Protection and Relief Act, a new ordinance that limits rent increases and provides “just cause” tenancy protections. Effective Sept. 12, 2019, the maximum annual rent adjustment for an existing tenancy cannot exceed 8.5% within a 12-month period.
The new ordinance limits rent increases to 6% plus the annual Consumer Price Index. According to city staff, the CPI used to calculate the rent cap was 2.5%.
The allowed annual increase is calculated based upon the base rent, which is the monthly rent in effect on July 1, 2019, for tenancies commencing on or before Sept.12. For tenancies beginning after that date, the initial base rent is the monthly rent set forth in the rental agreement.