For more than five years, California’s Tenant Protection Act of 2019 — commonly known as AB 1482 — has set the statewide ceiling on annual rent increases for most multifamily rental properties. Each year, the allowable increase resets on August 1st based on regional inflation data. For property owners in the South Bay and across California, August 1, 2026 brings a new set of allowable percentages that will govern rent adjustments through July 31, 2027.
This guide explains how AB 1482’s rent cap works, where to find the current allowable percentage for your region, how to issue a compliant rent increase notice, and which properties remain exempt.
Background: How AB 1482’s Rent Cap Works
AB 1482 imposes a statewide cap on annual rent increases for covered residential rental properties. The cap is calculated as the lower of (a) 5% plus the percentage change in the regional Consumer Price Index, or (b) 10%.
The CPI figure used is the regional CPI for the metropolitan area in which the property is located, measured as of April of the current year. New percentages take effect each August 1st and remain in place until July 31st of the following year.
In practice, this means:
- A property in the Los Angeles–Long Beach–Anaheim metropolitan statistical area uses the LA-area CPI.
- A property in the San Francisco–Oakland–Hayward MSA uses the Bay Area CPI.
- All other California properties use the All California CPI.
Because CPI varies by region, the allowable percentage is not uniform across the state. Owners managing properties in multiple regions need to apply the correct figure to each property.
What’s New on August 1, 2026
New regional CPI figures are published each spring by the U.S. Bureau of Labor Statistics and incorporated into AB 1482’s cap calculation. The California Apartment Association and the Apartment Association of Greater Los Angeles publish the updated allowable percentages each year as the data becomes available.
For properties in the Los Angeles–Long Beach–Anaheim region, the new AB 1482 cap is 8.7% effective August 1, 2026. This figure is the sum of the statutory 5.0% base plus the 3.7% April 2026 CPI-U for the Los Angeles–Long Beach–Anaheim MSA. The 8.7% cap applies to qualifying rent increases that take effect from August 1, 2026 through July 31, 2027.
Owners in other regions should confirm the official percentage for their MSA before issuing any increase notice scheduled to take effect on or after August 1, 2026. We recommend bookmarking AAGLA’s and CAA’s annual CPI update pages and confirming the allowable percentage every July, particularly for owners managing rent increases across multiple properties or regions.
Which Properties Are Covered
AB 1482 applies to most residential rental properties in California, with several important exemptions. Exempt properties generally include:
- Single-family homes and condominiums, provided the owner is not a corporation or real estate investment trust and proper exemption notice has been delivered.
- Buildings constructed within the last 15 years (the 15-year window rolls forward each year).
- Affordable housing units subject to deed restrictions.
- Duplexes where the owner occupies one unit as their primary residence.
- Properties already subject to a stricter local rent ordinance — in those cases, the local rule controls.
Properties in local rent control jurisdictions — including the City of Los Angeles, Beverly Hills, Inglewood, Culver City, and several others — remain subject to local rent stabilization ordinances, which generally allow smaller annual increases than AB 1482 and impose additional requirements. Owners in those cities should confirm both the local and state caps; the more restrictive of the two will apply.
Notice Requirements
Even when an increase falls within the AB 1482 cap, the form and timing of the notice still matter. Under California law:
- An increase of 10% or less requires at least 30 days’ written notice prior to the effective date.
- Increases above 10% — which are not permitted under AB 1482 for covered properties — require 90 days’ notice and are generally prohibited for covered units.
- Notice must be delivered in compliance with Civil Code Section 827, which governs service of rent increase notices.
- Local jurisdictions may impose additional requirements, including translation, registration of the increase with a local rent stabilization board, or longer notice periods.
Owners issuing increases that take effect on or after August 1, 2026 should plan notice delivery accordingly, particularly if the goal is to bring the new rent into effect early in the new cap year.
Common Pitfalls
Stacking. Owners are limited to no more than two rent increases in any 12-month period, and the combined increase cannot exceed the annual cap. Splitting a 6% increase into two 3% notices does not double the allowable cap.
Exemption notice. For single-family home and condominium owners relying on the AB 1482 exemption, the exemption notice must be properly served on the tenant. Without it, the property may be treated as covered.
Local ordinances. AB 1482 sets a ceiling, not a floor. A property subject to a local rent stabilization ordinance is bound by the lower of the two limits. Always confirm local rules before issuing a notice.
Effective date timing. The August 1st reset means increases scheduled to take effect on July 31, 2026 use the prior year’s cap, and increases on August 1, 2026 use the new cap. Plan notice delivery dates around this transition.
How a Property Management Company Can Help
For owners with even a small portfolio, tracking AB 1482’s annual reset, monitoring local ordinances, calculating the correct allowable percentage for each property’s region, and serving compliant notices is more administrative work than it sounds. A professional property management company should handle the entire process — from confirming the current allowable percentage, to drafting compliant notices, to delivering them on a schedule that maximizes the owner’s annual rent growth without exposing the property to liability for a faulty notice.
At Jamico Properties, we calendar AB 1482’s August 1st reset every year, confirm the current allowable percentage for each region we serve, and coordinate rent increase notices for our owners across the South Bay and beyond — including jurisdictions with overlapping local rent stabilization rules. We also coordinate notice timing with broader 2026 compliance changes, including SB 326 and SB 721 balcony inspection deadlines and AB 628 appliance requirements, and we watch active California emergency price gouging protections that may further constrain allowable increases in any given month.
If you own multifamily rental property in California and want help planning your August 2026 rent adjustments, request a free rental analysis or contact us to discuss your portfolio.
This article is for informational purposes only and is not legal advice. Property owners should consult an attorney or qualified housing professional for guidance specific to their property.
About the Author
Christie Slatcher is the owner and CEO of Jamico Properties, a family-owned property management company that has looked after rental property in the South Bay and in Tulsa since 1995. Her team manages more than 2,400 units across both markets, from single rentals to multi-unit buildings. She writes from what actually comes up in the day to day, not from theory.
Jamico Properties, a DBA of Jamison Management Company. DRE #01356743.