San Francisco renters live in two very different rent worlds. Tenants in units covered by the city’s Rent Ordinance can face increases of only 1.6 percent for March 2026 through February 2027 (San Francisco Rent Board). Meanwhile, the market around them is moving fast: Zillow’s Observed Rent Index for San Francisco reached about $4,683 a month in August 2026, up about 25 percent from a year earlier (Homzora San Francisco dataset, Zillow ZORI).
Which world you live in depends mostly on your building. This guide explains the Rent Ordinance’s increase rules, the statewide cap that covers many other units, the notice rules that apply to everyone, and how to check whether an increase is lawful.
Homzora is a housing research publisher, not a law firm. This article explains San Francisco and California rules in plain English and is not legal advice for your situation.
Units covered by the Rent Ordinance
The annual allowable increase
The Rent Board sets the allowable annual increase at 60 percent of the increase in the Bay Area Consumer Price Index. For March 1, 2026 through February 28, 2027, the allowable increase is 1.6 percent; the prior year it was 1.4 percent (San Francisco Rent Board, Rent Increases; Rent Board announcement). On a base rent of $2,000, that is an increase of $32, to $2,032. Increases may not be rounded up to the nearest dollar.
Timing and banking
A landlord may raise rent once every 12 months. The first annual increase can come 12 months after the tenancy begins, and the date of an increase becomes the tenant’s anniversary date. A landlord who skips an increase may bank it and impose it later, subject to the Rent Board’s rules, and landlords need a rent increase license before imposing annual or banked increases (San Francisco Rent Board).
Roommates
The Rent Board states that adding a roommate does not allow a landlord to charge more rent, even if the lease says otherwise (San Francisco Rent Board).
Vacancies
When a covered unit becomes vacant, the Rent Board explains there is no limit on how much rent a landlord may first charge the next tenant (San Francisco Rent Board). Once the new tenancy begins, annual increases are again limited.
Which buildings are covered
Coverage is technical. As a general rule, units with an initial certificate of occupancy issued after June 13, 1979 are exempt from the Rent Ordinance’s increase limits, though some categories remain covered, and separately titled units such as many single family homes and condominiums can be exempt under state law unless certain conditions apply (San Francisco Tenants Union, exemptions chart). If you are unsure whether your unit is covered, ask the Rent Board (San Francisco Rent Board).
Units covered only by the statewide cap
Many units exempt from local rent control are still covered by California’s Tenant Protection Act. Under Civil Code Section 1947.12, a landlord may not raise rent over any 12 month period by more than 5 percent plus the 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 figure uses the April to April change in the regional Consumer Price Index, and no more than two increases are allowed in 12 months (City of Downey, AB 1482 summary).
Exemptions include housing issued a certificate of occupancy within the previous 15 years and properly noticed single family homes and condominiums not owned by a real estate investment trust, a corporation, or an LLC with a corporate member (City of Downey). The statute remains in effect until January 1, 2030 (§ 1947.12(o)).
Notice rules that apply to everyone
Both state law and the Rent Board require written notice. A proposed increase requires at least 30 days’ notice, or 90 days if the increase alone or combined with other increases in the prior 12 months exceeds 10 percent (Cal. Civ. Code § 827). The Rent Board adds that mailed notices require 5 additional days, and that the notice should state the dollar amount, the percentage, and the effective date (San Francisco Rent Board).
Retaliation is prohibited
California prohibits a landlord from increasing 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 certain other protected actions (Cal. Civ. Code § 1942.5).
Who feels increases most
About 42,400 San Francisco renter households, roughly 19 percent of the city’s 224,900 renter households, pay half or more of their income in rent, according to the U.S. Census Bureau’s 2020 to 2024 American Community Survey (Homzora San Francisco dataset, Table B25070). For a renter in a covered unit, the difference between a 1.6 percent annual increase and the current market is the main reason to understand these rules before agreeing to anything.
Checking an increase notice
| Question | Rent controlled unit | Statewide cap unit |
|---|---|---|
| Maximum annual increase | 1.6 percent, March 2026 to February 2027, plus any properly banked increases | 5 percent plus regional CPI, up to 10 percent |
| Frequency | Once every 12 months | No more than two increases in 12 months, within the cap |
| Notice | 30 days, or 90 days above 10 percent, plus 5 days if mailed | 30 days, or 90 days above 10 percent |
| Where to ask | San Francisco Rent Board | Legal aid or a tenant organization |
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 landlord is passing through capital improvement costs. Is that part of the 1.6 percent?
The Rent Board explains that annual increases apply to base rent and do not include temporary passthroughs or fluctuating charges, which are handled separately (San Francisco Rent Board). Ask the Rent Board how any passthrough affecting you is calculated.
Can my landlord raise my rent because I added a roommate?
Not in a unit covered by the Rent Ordinance, according to the Rent Board, even if the lease says otherwise (San Francisco Rent Board).
Does the statewide cap expire?
Under current law, Section 1947.12 remains in effect until January 1, 2030 (§ 1947.12).
My building was built in 2005. Does the 1.6 percent limit apply?
Generally not. Units with an initial certificate of occupancy issued after June 13, 1979 are generally exempt from the Rent Ordinance’s increase limits (San Francisco Tenants Union). But a building certified in 2005 is outside the statewide law’s 15 year new construction window, so it is generally covered by the statewide cap of 5 percent plus regional CPI, up to 10 percent, unless another exemption applies (City of Downey).
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.
Sources
- San Francisco Rent Board, Learn About Rent Increases
- San Francisco Rent Board, Annual Rent Increase 2026 to 2027
- San Francisco Tenants Union, Exemptions to Rent Control and Just Cause
- California Civil Code § 1947.12
- City of Downey, AB 1482 summary
- California Civil Code § 827
- California Civil Code § 1942.5
- Zillow ZORI and U.S. Census Bureau ACS data, via Homzora
- San Francisco Rent Board
- 211.org
- San Mateo County, Tenant Protections under California Law