1. What is CPI-Based Rent Increase?

The CPI (Consumer Price Index) based rent increase is a method used in California to determine the maximum allowable rent increase under rent control laws. For 2025, the formula is CPI + 5%, capped at 10%.

2. How Does the Calculator Work?

The calculator uses the California rent increase formula:

Where:

• \( CPI \) — Current Consumer Price Index percentage
• 5% — Fixed addition to CPI
• 10% — Maximum allowable increase

Explanation: This formula ensures rent increases are tied to inflation but protects tenants from excessive hikes.

3. California Rent Control Laws

Details: California's Tenant Protection Act (AB 1482) limits rent increases to 5% + CPI, with a maximum of 10% annually for most rental properties.

4. Using the Calculator

Tips: Enter the current CPI percentage (typically available from government sources). The calculator will determine the maximum allowable rent increase for 2025.

5. Frequently Asked Questions (FAQ)

Q1: What CPI index is used in California?
A: California typically uses the regional CPI-U (Consumer Price Index for All Urban Consumers) for the specific metropolitan area.

Q2: Does this apply to all rental properties?
A: No, some properties are exempt including newer buildings (last 15 years), single-family homes (unless owned by corporations), and certain subsidized housing.

Q3: When can landlords implement the increase?
A: Rent increases are generally limited to once per 12 months with proper notice (30-90 days depending on increase amount).

Q4: What if my local ordinance has different rules?
A: Local rent control laws with stricter limits take precedence over state law. Always check local regulations.

Q5: How often is the CPI updated?
A: The Bureau of Labor Statistics releases CPI data monthly, but rent increases typically use annual averages.