Inland Empire renters have long traded longer commutes for lower rents than the coast, but rent still takes a large share of income. Across the Riverside, San Bernardino, and Ontario metro area, the median gross rent is $1,846 a month and the median renter household earns $62,167 a year, according to the U.S. Census Bureau’s 2020 to 2024 American Community Survey (Homzora Inland Empire dataset, Table B25064; Table B25119). That median rent equals about 36 percent of the median renter household’s gross monthly income.
Because so many Inland Empire rentals are single family homes, one question decides how much protection a renter has: whether the home is exempt from California’s statewide rent cap. This guide explains how to find out, and what rules apply either way.
Homzora is a housing research publisher, not a law firm. This article explains California law in plain English and is not legal advice for your situation.
California’s statewide rent cap
Civil Code Section 1947.12 limits increases over any 12 month period to 5 percent plus the percentage change in the regional cost of living, or 10 percent, whichever is lower, measured against the lowest rent charged in the prior 12 months (Cal. Civ. Code § 1947.12). The cost of living is the April to April change in the Consumer Price Index for All Urban Consumers for the metro area, or the California index where no regional index exists, and no more than two increases are allowed in 12 months (City of Downey, AB 1482 summary). The statute remains in effect until January 1, 2030 (§ 1947.12(o)).
Is your rental home exempt?
A single family home or condominium is exempt from the cap only if all of the following are true (City of Downey):
- It is not owned by a real estate investment trust, a corporation, or an LLC in which at least one member is a corporation.
- The owner gave the tenant the required written notice that the property is exempt. For tenancies begun or renewed on or after July 1, 2020, that notice must be in the rental agreement.
The City of Downey’s summary puts it plainly: if the owner does not provide the required notice, a single family home or condominium is not exempt.
What that means in practice
| Your landlord | Exemption notice in lease? | Covered by the cap? |
|---|---|---|
| A large rental home company (corporation or REIT) | Not relevant | Yes, unless another exemption applies, such as new construction |
| An individual owner | Yes | No |
| An individual owner | No | Yes |
Find your lease and search for the exemption language. Many renters discover they are covered after all.
Other exemptions
Housing issued a certificate of occupancy within the previous 15 years is exempt on a rolling basis, as are units in an owner occupied duplex where the owner lived in the other unit throughout the tenancy, deed restricted affordable housing, and certain dormitories (City of Downey). With extensive newer subdivisions in parts of Riverside and San Bernardino counties, the 15 year rule is worth checking.
Notice rules apply to every rental
For month to month tenancies, a landlord must give at least 30 days’ written notice for an increase of 10 percent or less in a 12 month period, and at least 90 days’ notice for an increase of more than 10 percent (Cal. Civ. Code § 827). Exempt homes are not exempt from this notice rule.
Retaliation is prohibited everywhere
A landlord may not increase rent in retaliation within 180 days after a tenant who is not in default gives a good faith repair notice, complains to a government agency, or takes other protected actions (Cal. Civ. Code § 1942.5).
A worked example at the metro median
Suppose your rent is $1,846 and the regional CPI change for the relevant period is 3 percent. For a covered home, the maximum increase over 12 months would be 8 percent, about $148, to roughly $1,994. If CPI were 6 percent, the formula would give 11 percent, but the 10 percent ceiling would cap the increase at about $185. For an exempt home with proper notice, there is no cap, but a 15 percent increase on a month to month tenancy would still require 90 days’ written notice (§ 827).
Your affordability line
At the metro median renter income of $62,167, 30 percent of gross income is about $1,554 a month, roughly $292 below the median gross rent of $1,846. About 495,400 metro households rent (Table B25003), and for many of them an increase pushes rent further past that line. Run your own numbers with the proposed rent before deciding whether to renew, negotiate, or move.
Negotiating
- Ask for the renewal offer in writing, with every fee listed.
- Compare with current listings for similar homes nearby.
- Offer a longer term for a smaller increase.
- For individual owners, emphasize your payment history and care of the home; replacing a reliable tenant costs an owner time and money.
Help
LawHelpCA.org lists free legal aid organizations serving Riverside and San Bernardino counties (LawHelpCA.org).
Just cause protection after 12 months
Rent rules work alongside eviction rules. Under the statewide Tenant Protection Act, once a tenancy has lasted 12 months, or 24 months in some cases when a new tenant is added, a landlord generally needs a just cause to end it, and for no fault causes must provide relocation assistance equal to one month of rent (San Mateo County, Tenant Protections under California Law). That limits a landlord’s ability to end a covered tenancy simply to reset the rent. Some housing types are exempt from these protections, using exemptions similar to those for the rent cap (City of Downey).
A sample letter questioning an increase
Date: 2026. To: [landlord]. Re: Rent increase notice for [address, unit]. I received your notice dated 2026 increasing my rent from [amount] to [amount], effective 2026. I believe my unit is covered by [the statewide rent cap in Civil Code Section 1947.12, or local rent control], and the proposed increase of [percent] exceeds the allowed amount of [percent] for this period. [I also note that an increase above 10 percent requires 90 days’ notice under Civil Code Section 827.] Please confirm the correct amount in writing. Sincerely, [name].
Keep a copy and proof of delivery, and continue paying your current rent on time while the question is resolved.
A renewal timeline
| When | What to do |
|---|---|
| 90 days before an expected increase | Confirm whether your unit is covered by local rent control, the statewide cap, or neither. |
| When the notice arrives | Check the amount, the timing since the last increase, and the notice period: 30 days, or 90 days above 10 percent (§ 827). |
| Within a week | Send any written question or counteroffer. |
| Before the effective date | Decide whether to stay, negotiate further, or give notice to move. |
If you cannot afford the increase
- Ask whether a longer lease would lower the increase.
- Ask about a smaller unit with the same landlord.
- Contact 211 for information on local rental assistance programs (211.org).
- If you decide to move, give the written notice your tenancy requires so you leave on your own schedule.
Frequently asked questions
My lease never mentioned the rent cap exemption. Is my house covered?
If your landlord did not give the required notice, a single family home or condo is not exempt (City of Downey), so the cap applies unless another exemption does.
Can my rent go up more than once a year?
Under the statewide cap, no more than two increases are allowed in 12 months, and their combined total must stay within the cap (City of Downey).
Does Riverside or San Bernardino have local rent control?
This guide covers statewide law. If you rent in a city with its own rental ordinances, check with that city’s housing office for any additional rules.
I renewed my lease in 2023. Where should the exemption notice be?
For tenancies begun or renewed on or after July 1, 2020, the notice that a home is exempt must be included in the rental agreement itself (City of Downey). If your 2023 renewal lease does not contain it, the home is not exempt on that basis.
Where do I find the CPI figure?
The U.S. Bureau of Labor Statistics publishes Consumer Price Index data, including regional indexes (U.S. Bureau of Labor Statistics, CPI). Use the April to April change for your area that applies to the date of your increase.
Can my landlord give me a rent increase notice by text message?
For month to month tenancies, Section 827 calls for written notice delivered personally or by mail as provided in the Code of Civil Procedure (§ 827). If you receive an increase only by text or app message, ask for proper written notice and keep a copy of everything you receive.
Does the cap apply when my fixed term lease renews?
Yes, for covered units. The statute limits increases over any 12 month period, measured against the lowest rent charged for the unit during the prior 12 months, regardless of whether the new rent arrives through a renewal lease or a notice on a month to month tenancy (§ 1947.12(a)).
Sources
- California Civil Code § 1947.12
- City of Downey, AB 1482 summary
- California Civil Code § 827
- California Civil Code § 1942.5
- U.S. Census Bureau, ACS 2020 to 2024 5 year estimates, via Homzora
- LawHelpCA.org
- 211.org
- U.S. Bureau of Labor Statistics, Consumer Price Index
- San Mateo County, Tenant Protections under California Law