California Rent Cap 2026: San Diego Drops, Orange County Rises (AB 1482 Update)
San Diego’s 2026 rent cap dropped to 8.2% while Orange County’s rose to 8.7%. Here’s how the new AB 1482 limits work, who’s exempt, and how to raise rent legally.
Here’s something that doesn’t happen every year: San Diego’s rent cap just went down, and Orange County’s just went up — same state, same law, same week, different directions.
These are the new maximum rent increases for the year that starts August 1, 2026 under California’s Tenant Protection Act (AB 1482):
| County | 2026–2027 Rent Cap | Change From Last Year |
|---|---|---|
| San Diego County | 8.2% | ▼ Down from 8.8% |
| Orange County | 8.7% | ▲ Up from 8.0% |
If you own a rental in either county, this is the number that determines how much you can legally raise rent this year — assuming the cap applies to your unit at all (more on that below). Let’s break down what changed, why, and what to do about it.
Key Takeaways
The California rent cap for 2026 is 8.2% in San Diego County and 8.7% in Orange County, effective August 1, 2026, under the Tenant Protection Act (AB 1482).
- San Diego County: 8.2% maximum rent increase (down from 8.8%) for August 1, 2026 through July 31, 2027.
- Orange County: 8.7% maximum rent increase (up from 8.0%) for the same period.
- Why they differ: the cap is 5% plus local inflation (CPI), capped at 10% — San Diego’s inflation ran lower than Orange County’s this year.
- Before you raise rent: confirm your unit isn’t exempt (buildings under ~15 years old and many single-family homes with proper notice often are), apply the correct county percentage, and give at least 30 days’ written notice.
Table of Contents
- What Is the California Rent Cap?
- What Are the New 2026 Rent Cap Numbers?
- How Is the Rent Cap Calculated?
- Why Did San Diego Go Down While Orange County Went Up?
- What Does the Rent Cap Mean in Real Dollars?
- Does the Rent Cap Apply to Every Rental?
- How to Raise Rent the Right Way This Year
- How Good Life Property Management Can Help
- Frequently Asked Questions
What Is the California Rent Cap
The California rent cap is the maximum amount a landlord can legally raise rent on a covered unit in any 12-month period. It comes from the Tenant Protection Act, the statewide law most people know as AB 1482.
Every August 1, the state resets this cap based on local inflation. The formula is the same statewide, but the result is different in each region because inflation moves differently from one metro area to the next. That’s exactly why San Diego and Orange County landed in different places this year.
The cap does not apply to every rental. We’ll cover who’s exempt further down, but the short version is: figure out whether your unit is covered before you set any increase.
What Are the New 2026 Rent Cap Numbers?
For the period running August 1, 2026 through July 31, 2027, the maximum allowable rent increases are:
- San Diego County: 8.2% — down from 8.8% the year before
- Orange County: 8.7% — up from 8.0% the year before
These ceilings apply only to units that are covered by AB 1482. If your property is exempt, these numbers don’t limit you (though other rules, like local ordinances and notice requirements, may still apply).
How Is The Rent Cap Calculated?
The math behind AB 1482 is simpler than most people expect:
5% + your area’s local inflation (CPI) = your cap — but it can never exceed 10%.
That’s it. The state takes a flat 5% base and adds the regional change in the Consumer Price Index. If that total comes out above 10%, you’re capped at 10% no matter what.
Here’s how this year’s numbers shake out:
- San Diego: 5% + 3.2% CPI = 8.2%
- Orange County: 5% + 3.7% CPI = 8.7%
Neither hit the 10% ceiling this year, so the full calculated figure applies in both counties.
Why Did San Diego Go Down While Orange County Went Up?
It comes down to one thing: local inflation.
The 5% base is fixed. The only moving part is the regional CPI. This year, San Diego’s prices rose a little more slowly than they did the year before, which pulled its number down. Orange County’s prices rose a little faster, which pushed its number up.
Same law. Same formula. Different inflation. That’s the whole story — and it’s a good reminder that you can’t assume this year’s cap based on what your neighbor in the next county is doing, or even what your own county did last year.
What Does the Rent Cap Mean in Real Dollars?
Percentages are easy to gloss over, so let’s put real money on it.
Take a unit renting for $2,800 a month:
- In San Diego at 8.2%, you could raise it by about $230 a month at most.
- For comparison, last year’s 8.8% cap would have allowed roughly $246 a month.
- In Orange County at 8.7%, the same $2,800 unit could go up by about $244 a month.
That difference may look small line by line, but it adds up — month over month, and especially across multiple units. A handful of dollars per door, multiplied across a portfolio and across a full year, is real income on the table (or real risk, if you raise more than the law allows).
Does the Rent Cap Apply to Every Rental?
No — and this is the part landlords miss most often. Several common categories are exempt from the AB 1482 rent cap:
- Newer buildings. Properties with a certificate of occupancy issued within roughly the last 15 years are generally exempt. This is a rolling date, so a building that’s exempt today can become covered as it ages.
- Many single-family homes and condos. These are often exempt — but only if the property isn’t owned by a corporation, REIT, or LLC with a corporate member, and the proper written exemption notice was included in the lease at signing. Skip that notice, and the unit may be treated as covered regardless of property type.
- Some local ordinances stack on top. Cities like San Diego have their own tenant protection rules that can be stricter than the state cap and carry their own notice requirements. A statewide exemption does not automatically free you from a local ordinance.
Bottom line: figure out which bucket you’re in before you do anything. If the cap applies, 8.2% (San Diego) or 8.7% (Orange County) is your ceiling. If you’re properly exempt, it isn’t — but document that exemption carefully.
How to Raise Rent the Right Way This Year
If you’re planning an increase, here’s the short checklist:
- Confirm the cap applies to your unit. Check your build date, ownership structure, exemption notice, and any local ordinance before you do the math.
- Use the right percentage for the right county. San Diego is 8.2%. Orange County is 8.7%. Don’t mix them up, and don’t carry over last year’s number.
- Give proper written notice. For increases of 10% or less — which both of these caps are — California requires at least 30 days’ written notice. Add a few extra days if you’re serving by mail. (Increases over 10% require more notice, but you won’t hit that under either county’s cap this year.)
- Keep your paperwork. Save your CPI source, your calculation, the notice, and proof of how it was served. That documentation is your best protection if an increase is ever challenged.
None of this is legal advice — when in doubt, check your specific state, county, and local ordinances.
How Good Life Property Management Can Help
At Good Life Property Management, tracking these numbers and applying them correctly is part of what we do every day. We’ve helped hundreds of San Diego and Orange County landlords stay compliant with AB 1482 — calculating legal increases, serving proper notices, and keeping the documentation that protects you down the road.
A single rent-increase mistake can create refund liability that outlasts even a property sale. We’d rather you never have that problem in the first place.
Planning an increase this year and not sure how much you can legally raise rent? Contact Good Life Property Management — we’re happy to help you figure out exactly where your property stands.
We make owning rental property easy, so you can Live the Good Life.
Frequently Asked Questions
What is the California rent cap for 2026?
For the period from August 1, 2026 to July 31, 2027, the AB 1482 rent cap is 8.2% in San Diego County and 8.7% in Orange County, for units covered by the law. The statewide formula is 5% plus local inflation, never to exceed 10%.
How much can I raise rent in San Diego in 2026?
On a covered unit in San Diego County, you can raise rent by up to 8.2% for the year starting August 1, 2026 — down from 8.8% the prior year. On a $2,800 rent, that’s a maximum increase of about $230 per month.
How much can I raise rent in Orange County in 2026?
On a covered unit in Orange County, the maximum increase is 8.7% for the year starting August 1, 2026 — up from 8.0% the prior year. On a $2,800 rent, that’s a maximum increase of about $244 per month.
Why is San Diego's rent cap lower than Orange County's this year?
Because the cap is tied to local inflation. The 5% base is the same statewide, but San Diego’s regional CPI came in lower (3.2%) than Orange County’s (3.7%), so San Diego’s total cap is lower.
Does the AB 1482 rent cap apply to my property?
Not necessarily. Buildings under roughly 15 years old, and many single-family homes and condos with the proper exemption notice in the lease, are commonly exempt. Local city ordinances can also override the state cap. Confirm your unit’s status before setting any increase.
How much notice do I have to give for a rent increase in California?
For increases of 10% or less — which both the San Diego and Orange County 2026 caps are — California requires at least 30 days’ written notice. Allow extra days if you’re serving the notice by mail. Increases over 10% require longer notice.
When does the new rent cap take effect?
The new caps apply to rent increases that take effect on or after August 1, 2026, and run through July 31, 2027. The cap resets again the following August 1.
Steve Welty
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