California Rent Increase Calculator 2025

California Rent Increase Formula (AB 1482):

\[ \text{New Rent} = \text{Current Rent} \times (1 + \min(\text{CPI} + 5\%, 10\%)) \]

New Rent (USD):

1. What is the California Rent Increase Law?

Under California's AB 1482 (Tenant Protection Act of 2019), landlords are limited to annual rent increases of no more than 5% plus the percentage change in the cost of living (CPI), or 10%, whichever is lower. This calculator helps determine the maximum allowable rent increase for 2025.

2. How Does the Calculator Work?

The calculator uses the AB 1482 formula:

\[ \text{New Rent} = \text{Current Rent} \times (1 + \min(\text{CPI} + 5\%, 10\%)) \]

Where:

\( \text{Current Rent} \) — The tenant's current monthly rent amount
\( \text{CPI} \) — The Consumer Price Index percentage change for your region
5% — The fixed percentage allowed under AB 1482
10% — The maximum allowed increase under any circumstances

Explanation: The law caps rent increases at either 10% or CPI+5%, whichever is lower, to protect tenants from excessive rent hikes.

3. Importance of Rent Control

Details: AB 1482 provides important protections for California tenants, preventing sudden large rent increases that could lead to displacement. The law applies to most rental properties more than 15 years old.

4. Using the Calculator

Tips: Enter your current rent amount in USD and the current CPI percentage for your region. The calculator will show the maximum new rent allowed under AB 1482 and the dollar amount of the increase.

5. Frequently Asked Questions (FAQ)

Q1: Does AB 1482 apply to all rental properties?
A: No, exemptions include properties built within the last 15 years, single-family homes (unless owned by corporations), and duplexes where the owner occupies one unit.

Q2: Where can I find the CPI for my area?
A: Check the U.S. Bureau of Labor Statistics website for regional CPI data. Many California cities publish local CPI numbers as well.

Q3: Can landlords increase rent more than once per year?
A: No, AB 1482 limits increases to once every 12 months, regardless of the amount.

Q4: What if my lease has different terms?
A: AB 1482 sets the maximum allowed increase. Landlords can choose to increase by less, but not more, than the calculated amount.

Q5: Does this apply to commercial properties?
A: No, AB 1482 only applies to residential rental properties.