Oregon Rent Increase Rules: Pass-Through Costs Explained

Oregon has some of the strongest statewide tenant protections in the U.S., but rent increases—and the reasons they occur—can still cause confusion. One issue that renters often face is a landlord raising rent to cover certain costs, sometimes called pass-through costs. This article explains when (and if) landlords in Oregon can legally pass extra costs to tenants, what rules apply under current laws, and where renters can turn for official support.

Understanding Pass-Through Costs and Rent Increases in Oregon

In some states and cities, landlords can increase rent to cover specific expenses, such as property taxes, repairs, or capital improvements. These are sometimes referred to as pass-through costs. However, in Oregon, how and when these increases can happen is regulated by statewide rent control laws enacted in 2019.

Current Oregon Rent Increase Rules

State law limits most rent increases in Oregon. Under ORS 90 – Oregon Residential Landlord and Tenant Act, rent for residential tenancies (apartments, homes, and some manufactured dwellings) can only be raised by a certain percentage annually, except for newer buildings or government-subsidized housing.¹ This annual cap includes all reasons for a rent increase—including so-called pass-through costs—so landlords usually cannot add a separate charge on top of your regular rent increase for taxes or repairs.

• The state sets a maximum percentage each year. For 2024, the maximum allowed annual rent increase is 10% for most properties.
• Landlords must provide at least 90 days' written notice before raising the rent. See more details from the Notice of Rent Increase (see Forms section below).
• If you live in a unit built within the past 15 years, certain rent control limits may not apply.
• Additional fees (like late fees or utilities) are separate and must follow legal requirements.

Summary: In Oregon, "pass-through" rent increases are not allowed outside the yearly rent cap. All regular rent increases—whatever the reason—are included in the maximum set by law.

What Exceptions Exist?

Some types of housing, such as new construction (under 15 years old) or affordable housing with government subsidies, may be exempt from state rent caps.² If you are uncertain, check your lease and ask your landlord, or contact the state housing agency for clarification.

Required Notice and Forms: What Should Renters Receive?

Landlords must notify tenants in writing at least 90 days before any rent increase takes effect. This is required by Oregon law—and it applies even if the increase is meant to cover a special cost.

• Notice of Rent Increase
  Notice of Rent Increase (no official form number)
  When to use:
  • Your landlord gives you this form to announce a rent hike. It must include the new rent amount and when it takes effect.
  • If you believe the increase is illegal or over the cap, you can use this written notice as proof if you need to file a complaint or take action.

Where to File Disputes

Disputes about rent increases are handled through the local county circuit court or in some cases, through the Oregon Judicial Department – Landlord/Tenant (Eviction) Court. Tenants can also seek mediation from local Housing and Community Services.

Additional Resources on Rent Control Laws

• Full text: Oregon Residential Landlord and Tenant Act (ORS 90)
• Annual rent increase maximum: State of Oregon Rent Stabilization
• Landlord-tenant forms and information: Oregon Housing and Community Services

FAQ: Pass-Through Costs and Rent Increases in Oregon

1. Can my landlord raise my rent for special repairs or new property taxes?
   No. Oregon law caps total annual rent increases, including for repairs, taxes, or any pass-through costs. Separate extra charges are not allowed for these reasons in most cases.
2. How much notice must my landlord give for a rent increase?
   Your landlord must provide at least 90 days' written notice before any legal rent increase, using the proper form.
3. Does rent control apply to every rental unit in Oregon?
   No. Some units—such as newly built housing (less than 15 years old) and some affordable or subsidized housing—may be exempt from statewide rent caps. Always check with your local housing authority if unsure.
4. What should I do if my landlord tries to raise my rent above the legal limit?
   Keep the notice, do not pay the extra amount, and contact Oregon Housing and Community Services or your local circuit court for help.
5. Where can I report illegal rent increases?
   You can contact your local circuit court, the Oregon Judicial Department, or Oregon Housing and Community Services for support and possible mediation.

Conclusion: Key Takeaways for Renters

• Oregon landlords cannot make separate "pass-through" rent increases; all rent hikes must comply with the annual state rent cap.
• You are entitled to 90 days' written notice before any rent increase takes effect.
• If you receive a notice or charge you feel is illegal, save the paperwork and seek official help right away.

Understanding your rights around rent increases empowers you to respond if you receive a notice that doesn’t seem fair or legal. Reach out to state agencies if you need further help.

Need Help? Resources for Renters

• Oregon Housing and Community Services – Renter Resources
• Oregon Judicial Department – Landlord/Tenant Court (for filing complaints and legal actions)
• Official legislation: Oregon Residential Landlord and Tenant Act (ORS 90)
• Forms and notices: Oregon Housing and Community Services Forms

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1. Oregon Residential Landlord and Tenant Act (ORS 90): Read the full legislation
2. State of Oregon Rent Stabilization Updates: Official guideline on annual rent increases

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