Short answer: New rent = current rent × (1 + increase %). A 3% raise on the US median 3-bedroom rent of $1,677 is $50.31 a month, or $604 a year. For comparison, the CPI for rent rose 2.8% over the 12 months to September 2026. California, Oregon and Washington cap most increases for sitting tenants; the calculator checks those caps for you.
Definition
A rent increase percentage is the raise divided by the current rent, times 100. It is usually set at lease renewal for a tenant who is staying, and state or local law can limit how much and how often it can go up and how much notice you must give.
By the numbers: The BLS Consumer Price Index for rent of primary residence rose 2.8% from September 2025 to September 2026, not seasonally adjusted.
How to calculate a rent increase
Increase % = (new rent − current rent) ÷ current rent × 100
New rent = current rent × (1 + increase % ÷ 100)
The yearly difference is the monthly raise times 12. Rent is paid in dollars, so the calculator shows both: a raise that sounds small as a percentage can be a real amount every month on a higher rent.
How it compares with rent inflation
The Bureau of Labor Statistics tracks what renters pay in the Consumer Price Index (CPI) for rent of primary residence. It rose 2.8% from September 2025 to September 2026, while the CPI for all items rose 3.7% (CPI-U, US city average, not seasonally adjusted). The Census Bureau's American Community Survey shows the US median gross rent at $1,487 in 2024, up 5.8% from 2023.
The CPI averages all renters, including long-time tenants whose rent changes slowly, so it moves more gently than asking rents on new listings. Use it as a yardstick, then check comps near your property with the rent estimate by ZIP code tool and the rent estimating guide.
The payback test: raise the rent or keep the tenant?
A raise only pays off while the tenant stays. If they move out, you lose rent while the unit is empty and pay to turn it over (cleaning, paint, repairs, listing and screening). The calculator works out how many months of the higher rent it takes to make that back:
Payback months = (months empty × new rent + turnover cost) ÷ monthly increase
The worked example uses the US median 3-bedroom gross rent of $1,677 (Census ACS 2024) with one month empty and a $1,000 turnover cost. The month empty and the turnover cost are examples, not market data, so enter your own.
| Increase | New rent | More per month | More per year | Payback (months) |
|---|---|---|---|---|
| 2% | $1,710.54 | $33.54 | $402 | 80.8 |
| 3% | $1,727.31 | $50.31 | $604 | 54.2 |
| 4% | $1,744.08 | $67.08 | $805 | 40.9 |
| 5% | $1,760.85 | $83.85 | $1,006 | 32.9 |
| 8% | $1,811.16 | $134.16 | $1,610 | 21.0 |
| 10% | $1,844.70 | $167.70 | $2,012 | 17.0 |
At 3%, the raise takes about 54 months (4.5 years) to cover one empty month and the turnover cost. Even at 10% it takes 17.0 months. That is why many landlords keep raises for good tenants modest and save bigger resets for turnover, when the rent can be set to market. Budget for empty months either way: see the vacancy rate guide.
State rent caps for tenants who stay
California, Oregon and Washington have statewide caps on increases for a tenant who stays, all tied to inflation. Elsewhere, check your own state and city law; many places have no cap but still set notice rules.
California: 5% plus regional CPI, 10% max
Civil Code 1947.12 limits increases over any 12 months to 5% plus the percentage change in the regional CPI-U, or 10%, whichever is lower, measured from the lowest rent in the prior 12 months, in no more than two steps. For increases effective on or after August 1, the CPI change is April of this year over April of last year (March if the area has no April figure), rounded to a tenth of a percent. FirstDoor's calculation from BLS data for increases effective August 1, 2026 through July 31, 2027:
| Area | CPI period | CPI change | Cap |
|---|---|---|---|
| Los Angeles area Los Angeles and Orange counties | Apr 2025 to Apr 2026 | 3.7% | 8.7% |
| San Francisco Bay Area Alameda, Contra Costa, Marin, San Francisco and San Mateo counties | Apr 2025 to Apr 2026 | 3.8% | 8.8% |
| Inland Empire Riverside and San Bernardino counties | Mar 2025 to Mar 2026 | 3.1% | 8.1% |
| San Diego area San Diego County | Mar 2025 to Mar 2026 | 3.2% | 8.2% |
Other areas of California use the California CPI from the Department of Industrial Relations. Exempt properties include housing with a certificate of occupancy issued in the last 15 years, and single-family homes or condos owned by individuals (not a REIT, a corporation or an LLC with a corporate member) whose tenants received the exemption notice in the statute. Notice is 30 days for a 10%-or-less increase and 90 days above 10% (Civil Code 827). Cities with their own rent control ordinances can set lower limits.
Oregon: 7% plus CPI, 10% max
Under ORS 90.323 and 90.324, Oregon's Office of Economic Analysis publishes the cap each year by September 30. It is 9.5% for 2026 and 10% for 2027 (Oregon OEA). Landlords must give at least 90 days' written notice, can't raise the rent in the first year of a tenancy, and can raise it only once in any 12 months (ORS 90.323).
Washington: 7% plus CPI, 10% max
RCW 59.18.700 limits increases to 7% plus the June-to-June change in the Seattle-area CPI, or 10%, whichever is less, and bars increases in the first 12 months of a tenancy. Seattle-area CPI rose 4.53% from June 2025 to June 2026, so the formula hits the ceiling: the Department of Commerce set 10% for 2027 (Commerce). Notice is at least 90 days (RCW 59.18.140). Exemptions are in RCW 59.18.710.
Laws change and local ordinances can be stricter, so read the current statute or ask a local landlord-tenant attorney before you send a notice. This page is educational, not legal advice.
Methodology and sources
- Rent inflation. BLS CPI-U, rent of primary residence (series CUUR0000SEHA) and all items (CUUR0000SA0), US city average, not seasonally adjusted, latest month vs the same month a year earlier, pulled from the BLS API on October 26, 2026.
- California caps. FirstDoor applies the Civil Code 1947.12 formula to BLS CPI-U all-items indexes for Los Angeles (CUURS49ASA0), San Francisco (CUURS49BSA0), Riverside (CUURS49CSA0) and San Diego (CUURS49ESA0). California does not publish one statewide number, so treat these as calculations and confirm with the statute.
- Oregon and Washington caps. The figures the state agencies published, checked October 26, 2026. Washington's Seattle-area CPI (CUURS49DSA0) is shown to explain why the cap is at its 10% ceiling.
- Payback. Months empty are charged at the new rent, the rent you would be asking. It ignores the time value of money and any rent the next tenant pays above the raised rent.
Frequently asked questions
How do I calculate a rent increase percentage?
Subtract the current rent from the new rent, divide by the current rent and multiply by 100. A raise from $1,600 to $1,680 is $80 ÷ $1,600 = 5%. To go the other way, multiply the current rent by 1 plus the percentage: $1,600 × 1.05 = $1,680.
What is a normal rent increase right now?
There is no official “normal” raise, but inflation is a useful yardstick. The Consumer Price Index for rent of primary residence rose 2.8% from September 2025 to September 2026, and all prices rose 3.7% (BLS, not seasonally adjusted). A raise near the rent CPI keeps pace with rent inflation; a much bigger one raises the odds the tenant shops around. Check comps for your address before you decide.
How much can a landlord raise rent in California?
Under Civil Code 1947.12, most covered rentals can go up by no more than 5% plus the percentage change in the regional CPI, or 10%, whichever is lower, over any 12 months. For increases effective August 1, 2026 through July 31, 2027, FirstDoor's calculation from BLS data gives Los Angeles area 8.7%, San Francisco Bay Area 8.8%, Inland Empire 8.1%, San Diego area 8.2%. Housing built in the last 15 years and qualifying single-family homes or condos owned by individuals are exempt, and local rent control can be stricter.
How much can a landlord raise rent in Oregon and Washington?
Oregon caps most increases at 7% plus CPI or 10%, whichever is lower: the state's Office of Economic Analysis set 9.5% for 2026 and 10% for 2027, with 90 days' notice and no increase in the first year. Washington uses the same 7% plus CPI or 10% formula under RCW 59.18.700; the Department of Commerce set 10% for 2027, with 90 days' notice and no increase in the first 12 months.
How much notice do I need to give for a rent increase?
It depends on the state and the lease. California requires 30 days for an increase of 10% or less and 90 days above 10% on a month-to-month tenancy (Civil Code 827). Oregon and Washington require 90 days. A fixed-term lease usually locks the rent until it ends. Check your state and city rules before you send a notice.
Is it worth raising the rent if the tenant might leave?
Do the payback math. If the unit sits empty for a month and turnover costs $1,000, a 3% raise on $1,677 rent ($50.31 more a month) takes about 54 months, or 4.5 years, to earn that back. A raise pays off when the tenant stays, so a good tenant who pays on time is often worth a smaller increase.
Sources
More free calculators
Educational tool, not legal or financial advice. Updated October 26, 2026.