How Much Can a Sacramento Landlord Legally Increase Your Rent? The City Just Updated the Limit
Starting this month, a Sacramento rent increase can go a little higher than it could last year. The city set its new cap on annual rent increases at 8.6 percent, up 0.9 percentage points from the previous limit, under the Sacramento Tenant Protection Program. If you rent an older unit in the city, that figure is the most your landlord may raise your rent over a 12 month period, and there are real penalties for going over it.
What the New Cap Is
The 8.6 percent figure is the maximum a covered Sacramento landlord may raise rent in a single year. The city announced the updated limit last week and it took effect this month. It applies to every covered tenant no matter how long they have lived in the unit, so a renter of ten years and a renter of ten months face the same ceiling.
The rule also limits how often rent can go up. A landlord may raise the rent no more than once every 12 months, so a covered tenant cannot be handed a second increase partway through the year.
How the 8.6 Percent Is Calculated
The limit is not an arbitrary number. Sacramento sets it with a formula written into the ordinance: a fixed 5 percent base rate plus the annual change in the California Consumer Price Index, with the combined total capped at 10 percent. For 2026, the California Department of Industrial Relations reported a 3.6 percent increase in the April Consumer Price Index. Add that to the 5 percent base and you reach 8.6 percent, which is why the ceiling landed where it did this year.
Because the inflation portion moves every year, the cap moves with it. Across the six years from July 1, 2020 to June 30, 2026, Sacramento’s maximum allowable increase has averaged about 8.5 percent.
Which Rentals Are Covered
The Tenant Protection Program does not cover every rental in the city. A unit is covered if it is an apartment, a duplex, a mobile home park space, or a single room occupancy hotel, and if it was built before February 1, 1995. Newer construction generally falls outside the local cap. If you are not sure whether your building qualifies, the age and the type of the property are the first two things to check.
What Happens If a Landlord Charges Too Much
A landlord who raises rent above the maximum, or more than once in 12 months, may face penalties of up to 25,000 dollars. The city enforces the rule, so it does not fall entirely on tenants to police it.
There is a release valve for landlords who believe they have a legitimate reason to charge more. A landlord may petition the city for a hearing to review an increase above the cap, but the request has to be backed by documentation that justifies it. Without that support, the maximum stands.
Why the City Sets a Limit
Sacramento’s City Council adopted the rent increase ordinance in 2019 to give renters, in the city’s words, "more stability to help them remain in their rental unit." The annual cap is the heart of the Tenant Protection Program.
"Changes to rent can have a significant impact on both tenants and housing providers," Bridget Casey, a program manager in the city’s Community Development Department, told Sacramento’s public information website. "Our goal is to help the community understand how the annual rent adjustment is calculated and ensure everyone has access to accurate information about the Tenant Protection Program."
Tenants and landlords who want details on the program or on a specific increase can reach the city’s Tenant Protection Program at 916-808-8121 or by email at [email protected].
What Covered Renters and Landlords Should Watch
If you rent a covered unit, an increase above 8.6 percent inside a 12 month window is not allowed unless the city has approved it through the petition process. If you are a landlord, that same number is your ceiling, and writing the rent figure and any increase into the California lease agreement keeps both sides clear on what was charged and when. Caps like Sacramento’s differ sharply from one city and state to the next, which is why it helps to know how much a landlord can raise the rent by state before you sign a lease or send a notice.
Sources
Frequently Asked Questions
How much can a Sacramento landlord raise my rent in 2026?
For 2026, a covered Sacramento landlord may raise rent by no more than 8.6 percent over a 12 month period under the city’s Tenant Protection Program. That figure comes from a 5 percent base plus the 3.6 percent annual change in the California Consumer Price Index, capped at a combined total of 10 percent.
Which Sacramento rentals are covered by the rent cap?
The cap covers apartments, duplexes, mobile home park spaces, and single room occupancy hotels built before February 1, 1995. Newer buildings generally are not covered by the local ordinance, so the age and type of your unit determine whether the limit applies.
What can I do if my landlord raises the rent above the limit?
A landlord who exceeds the cap, or raises rent more than once in 12 months, may face city penalties of up to 25,000 dollars. Landlords can petition the city for a hearing to justify a higher increase with documentation, but without that approval the 8.6 percent maximum applies. You can contact the Tenant Protection Program at 916-808-8121 or [email protected].
Jill Stradley covers landlord-tenant law, lease agreements, and the fine print that renters and landlords skip until something goes wrong. Her goal is to make state-specific rental law readable for people who aren't lawyers and don't want to become one. She lives in a rental herself and considers that a professional asset.
View all posts →Create Your Lease Agreement
Need a lease agreement? Create one now for $7.99 - state-specific and professionally formatted.
Get Started - $7.99