Rent increases in Commerce: the local rules

Each rule below links to the section of the Commerce Municipal Code it was read from, with the code text one click away (checked October 2026). General information, not legal advice.

What Commerce's code says

Commerce code What Commerce's code adds
Annual increase limit	5% plus the cost-of-living change, or 10%, whichever is lower. Applies: Per 12 months, measured from the lowest rent in the prior 12 months; in effect until January 1, 2030; exempt housing not covered. § 9.95.030 · code text increase the gross rental rate for a dwelling or a unit more than five percent plus the percentage change in the cost of living, or ten percent, whichever is lower The owner can set the starting rent freely; the cap applies only to later increases. Applies: A new tenancy where no prior tenant remains in lawful possession. § 9.95.030 · code text the owner may establish the initial rental rate not subject to subsection (a)
Units covered	Affordable housing for very low, low, or moderate income households is exempt. Applies: Housing restricted by deed, regulatory restriction, government agreement or other recorded document, or under an affordable-housing subsidy agreement. § 9.95.030 · code text Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income Dormitories are exempt. Applies: Dorms built and run in connection with a higher education institution for student use. § 9.95.030 · code text Dormitories constructed and maintained in connection with any higher education institution within the state for use and occupancy by students in attendance at the institution. Exempt. Applies: Housing under valid public rent or price control that limits yearly increases below this cap. § 9.95.030 · code text Housing subject to rent or price control through a public entity's valid exercise of its police power consistent with Chapter 2.7 (commencing with Section 1954.50) that restricts annual increases in the rental rate to an amount less than that provided in subsection (a). Exempt. Applies: Housing that got a certificate of occupancy within the past 15 years. § 9.95.030 · code text Housing that has been issued a certificate of occupancy within the previous fifteen years. Exempt Applies: Housing whose title can be sold separately from any other dwelling unit, only if the owner is not a real estate investment trust, a corporation, or an LLC with at least one corporate member, and the tenants were given the written exemption notice (in the rental agreement for tenancies begun or renewed on or after July 1, 2020) § 9.95.030 · code text Residential real property that is alienable separate from the title to any other dwelling unit, provided that both of the following apply: Exempt. Applies: A duplex where the owner lived in 1 unit as their main home when the tenancy began and still does. § 9.95.030 · code text A duplex in which the owner occupied one of the units as the owner's principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy.
How often rent can go up	No more than 2 increases in that 12-month period. Applies: While the same tenant stays; in effect until January 1, 2030. § 9.95.030 · code text the gross rental rate for the unit of residential real property shall not be increased in more than two increments over that twelve-month period

The California rule underneath

Where Commerce's rule above does not cover a situation, state law still applies. For the statewide rule on its own, see California's statewide rent cap.

CA state law The statewide rule underneath
Rent cap right now	8.7% for increases taking effect August 1, 2026 through July 31, 2027 (5% plus 3.7% inflation) Applies: Covered units only. Inflation is the BLS consumer price index for the Los Angeles-Long Beach-Anaheim area, April to April, as the statute requires; the figure is recomputed every year. Civ. Code § 1947.12(a)(1), (g)
Statewide rent increase cap (AB 1482)	5% plus the change in cost of living, or 10%, whichever is lower, over any 12 months Applies: Covered units only; measured against the lowest rent charged in the prior 12 months. Civ. Code § 1947.12(a)(1)
Number of rent increases	No more than two increases in any 12-month period Civ. Code § 1947.12(a)(2)
Rent cap — new construction exemption	Housing with a certificate of occupancy issued within the previous 15 years is exempt (rolling) Applies: Mobilehomes excepted. Civ. Code § 1947.12(d)(4)
Rent cap — single-family home or condo exemption	A home or condo that can be sold on its own is exempt when the owner is not a REIT, a corporation or an LLC with a corporate member, and the tenant was given the written exemption notice Applies: The same exemption applies to the just-cause rule (§ 1946.2(e)(8)). Civ. Code § 1947.12(d)(5)
Rent cap — owner-occupied duplex exemption	A duplex in one building is exempt when the owner lived in the other unit at the start of the tenancy and still does, unless either unit is an ADU or JADU Civ. Code § 1947.12(d)(6)
New tenancy resets the rent	When no prior tenant remains, the owner may set the initial rent; the cap applies to later increases Civ. Code § 1947.12(b)
Rent cap sunset	§ 1947.12 is repealed on January 1, 2030 unless extended Civ. Code § 1947.12(o)

Who this affects

TenantsLandlordsProperty managers

Frequently asked questions

How much can rent go up in Commerce?

Commerce limits increases to 5% plus the cost-of-living change, or 10%, whichever is lower, per 12 months; exempt housing is not covered. Commerce allows no more than 2 increases in a 12-month period while the same tenant stays.

General information, not legal advice.

Rent increases in Commerce

Key points

What Commerce's code says

The California rule underneath

Who this affects

Frequently asked questions

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