The Oregon Department of Administrative Services announced on Sept. 23 that the maximum allowable rent increase percentage for 2025 will be 10%, according to a press release. This allowable increase applies to residential rental units 15 years and older.
A law in 2019 began requiring DAS to calculate and publish the maximum rent increase for the following calendar year. The law, Senate Bill 608, amended existing laws relating to the termination of residential tenancies and rent increases. The law states that only one rent increase may be issued in any 12-month period.
In Bend, rental prices are trending downward. The average cost of rent in Bend as of Sept. 21 was $2,595, about $100 less than the average in Sept. 2023, according to Zillow.
According to the Oregon Housing Alliance, the provisions are intended to protect renters and prevent extreme rent increases.
The current calculation is 7%, plus the annual 12-month average change in the Consumer Price Index for All Urban Consumers, or 10%, whichever is lower.
Since its implementation in 2019, the rate has remained around 9 or 10%. That changed in 2023, when the rate went up to 14.6%. After a mid-year change in the law, however, DAS had to lower the allowable rent increase to 10%.
In June 2023, the Oregon Senate passed SB 611 to address the rising cost of rent each year. The law capped the allowable rent increase at 10%, meaning that even in periods of high inflation, rental costs cannot be raised more. The law went into effect on July 6, 2023.
According to a 2023 press release, announcing the passage of SB 611, with every $100 increase in average rent, communities can see a 9% increase in homelessness. Additionally, rent increases and evictions have a disproportionate impact on Black and Brown Oregonians.
The Oregon Legislative BIPOC Caucus identified SB 611 as a key priority for the 2023 session, to protect communities of color from the devastating impacts of rent gouging.
In Bend, rental prices are trending downward. The average cost of rent for a two-bedroom property in Bend as of Sept. 21 was $2,250, about $140 less than the average in Sept. 2023, according to Zillow.
