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East Palo Alto · Renting & eviction

Rent increases in East Palo Alto

City rule: yearly increases in regulated units are 80% of the CPI increase, at most 10%, and only 1 increase every 12 months.

Key points

  • Rent increases: City rule: yearly increases in regulated units are 80% of the CPI increase, at most 10%, and only 1 increase every 12 months.

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

What East Palo Alto's code says

East Palo Alto code What East Palo Alto's code adds
Annual increase limit
  • 80% of the CPI increase.
    Applies: Existing tenancies in regulated units; applied once a year on or after July 1.
    § 14.04.100 · code text
    the maximum allowable rent for existing tenancies in regulated units shall increase in an amount equal to eighty percent (80%) of the percentage increase in the CPI
  • 10% maximum.
    Applies: When 80% of the CPI increase would be higher than 10%.
    § 14.04.100 · code text
    If the calculation of eighty percent (80%) of the percentage increase in the CPI results in a percentage higher than ten percent (10%), the annual general adjustment shall be limited to ten percent (10%).
  • No yearly increase and no rent decrease; the decrease is subtracted from the next allowed increases.
    Applies: When the CPI change is negative.
    § 14.04.100 · code text
    If the applicable percentage change in the CPI is a negative number, there shall be no annual general adjustment for that year, but no rent decrease shall be required.
Floor or ceiling on the increase
  • No more than 10% in total.
    Applies: All rent increases under this rule in any 12-month period combined.
    § 14.04.100 · code text
    The overall rent increase in any twelve-month period pursuant to this section may not exceed ten (10) percent.
How often rent can go up
  • No more than 1 rent increase every 12 months.
    § 14.04.100 · code text
    No more than one rent increase per twelve-month period may be imposed on a tenancy in a specific rental unit pursuant to this section.
Petitions and pass-throughs
  • The landlord may ask the rent board for a fair return rent adjustment.
    Applies: For a fair return rent adjustment.
    § 14.04.120 · code text
    A landlord may petition the board for a fair return rent adjustment in accordance with the procedures set forth in Section 14.04.140 of this chapter.
  • Capital improvement costs can be spread over time, with interest at the 30-year fixed single-family mortgage rate plus 2%.
    Applies: In a landlord's fair return petition; only improvements costing more than $100 per benefited unit.
    § 14.04.120 · code text
    The amortized costs of capital improvements costing in excess of one hundred dollars ($100.00) per benefitted unit. An interest allowance shall be permitted as part of the cost of amortized capital improvements. The interest allowance shall be equal to the thirty-year fixed mortgage rate index for single-family dwellings plus two percent as of the date the application was first submitted.

The California rule underneath

Where East Palo Alto'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
8.8% for increases taking effect August 1, 2026 through July 31, 2027 (5% plus 3.8% inflation)
Applies: Covered units only. Inflation is the BLS consumer price index for the San Francisco-Oakland-Hayward area, April to April, as the statute requires; the figure is recomputed every year.
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.
Number of rent increases
No more than two increases in any 12-month period
Rent cap — new construction exemption
Housing with a certificate of occupancy issued within the previous 15 years is exempt (rolling)
Applies: Mobilehomes excepted.
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)).
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
New tenancy resets the rent
When no prior tenant remains, the owner may set the initial rent; the cap applies to later increases
Rent cap sunset
§ 1947.12 is repealed on January 1, 2030 unless extended

Who this affects

TenantsLandlordsProperty managers

Frequently asked questions

How much can rent go up in East Palo Alto?

City rule: yearly increases in regulated units are 80% of the CPI increase, at most 10%, and only 1 increase every 12 months.

General information, not legal advice.

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