Rent increases in Palo Alto: the local rules

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

What Palo Alto's code says

Palo Alto code What Palo Alto's code adds
Annual increase limit	No fixed cap. Residents may petition when increases in the last 12 months exceed San Francisco–Oakland–San Jose CPI plus 6%. Applies: Mobilehome park spaces only. Excludes state-exempt leases, spaces first rented after January 1, 1990, and first rent for a buyer or vacant space. § 9.76.120 · code text petition for review of any notice of rent increase that alone or in combination with any other rent increases imposed in the last twelve months exceeds the sum of the then-current Bureau of Labor Statistics Consumer Price Index – All Urban Consumers – San Francisco – Oakland – San Jose, plus 6%.
Units covered	Not covered: spaces under a lease that state mobilehome law exempts from local rent rules. Applies: Exempt from the city's mobilehome park rent increase review. § 9.76.120 · code text This section shall not apply to spaces subject to a lease exempt from local rent regulations pursuant to the Mobile Home Residency Law, California Civil Code Section 798, et seq. Not covered: spaces first offered for rent after January 1, 1990. Applies: Exempt from the city's mobilehome park rent increase review. § 9.76.120 · code text shall not apply to spaces first held out for rent after January 1, 1990 Not covered: the first rent to a buyer of a mobile home in the park, or for a vacant space. Applies: Exempt from the city's mobilehome park rent increase review. A space is not vacant when the resident replaces the mobile home with a new one. § 9.76.120 · code text shall not apply to spaces first held out for rent after January 1, 1990, or the rent first charged to a purchaser of a mobile home in the park or for a vacant space
Petitions and pass-throughs	A resident may petition the city to review the increase, with written support from at least 25% of residents. Applies: Mobilehome park spaces only, when increases in the last 12 months exceed CPI plus 6%. File with the city clerk within 30 days of notice. § 9.76.120 · code text A resident may, with the written support of no less than 25% of the total number of residents, petition for review of any notice of rent increase A hearing officer approves the increase needed for a just, reasonable and fair return on the park owner's investment. Applies: Mobilehome park review petitions. The officer considers CPI, comparable park rents, costs, capital improvements and other evidence. Decision due within 90 days of filing; final. § 9.76.120 · code text the hearing officer shall approve such increases as are required to provide a just, reasonable and fair return on investment to the park owner The noticed increase cannot be charged, demanded, collected or kept until the city approves it. Applies: Mobilehome park spaces, after a review petition is accepted and a hearing set. A resident may refuse to pay rent above the allowed maximum. § 9.76.120 · code text the noticed increase cannot be charged, demanded, collected or retained unless and until approved by the city.

Also in Palo Alto's code: Mobilehome Park Conversion (§ 9.76.120) — mobilehome park residents only. This page does not summarize it yet.

The California rule underneath

Where 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	8.6% for increases taking effect August 1, 2026 through July 31, 2027 (5% plus 3.6% inflation) Applies: Covered units only. Inflation is the California consumer price index (Department of Industrial Relations), used for counties outside the four metro areas, 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 Palo Alto?

State law caps rent increases on covered units at 8.6% for August 1, 2026 through July 31, 2027; city rent review covers only mobilehome park spaces.

General information, not legal advice.

Rent increases in Palo Alto

Key points

What Palo Alto's code says

The California rule underneath

Who this affects

Frequently asked questions

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