Rent Increase Limits Under AB 1482: The 5 Percent Plus CPI Formula

For covered units, California caps annual rent increases at 5 percent plus local inflation, never more than 10 percent — and increases above the cap are simply void.

What California Law Says

Civil Code section 1947.12 caps annual increases for covered tenancies at 5 percent plus regional CPI, with an absolute 10 percent ceiling, measured against the lowest rent charged in the prior 12 months, with no more than two increases in that period. Exemptions mirror AB 1482’s: newer construction and properly disclosed single-family exemptions.

How to Protect Yourself, Step by Step

1. Confirm coverage — most multifamily buildings older than 15 years qualify.
2. Compute the cap: 5 percent plus your metro CPI figure, capped at 10.
3. Audit the increase notice against the math and the 12-month lookback.
4. Pay only the lawful portion and dispute the excess in writing; overcap demands are void.
5. Recover overpayments and watch for the retaliation pattern if you push back.

Common Questions

My rent notice jumped 14 percent. What do I actually owe?

On a covered unit, only the capped amount — the excess is unenforceable, and a 3-day notice built on the void increase inherits the defect.

Does the cap reset when my roommate moves out?

Vacancy decontrol applies to full turnover, not roommate changes within a continuing tenancy — the cap keeps protecting the ongoing tenancy.