Rent Increase Calculator California 2025 State

California AB 1482 Rent Increase Formula:

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

New Rent (USD):

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1. What is California's AB 1482?

California Assembly Bill 1482 (AB 1482) is a statewide rent control law that took effect January 1, 2020. It limits annual rent increases to no more than 5% plus the percentage change in the cost of living (CPI), or 10% - whichever is lower.

2. How Does the Rent Increase Calculator Work?

The calculator uses the AB 1482 formula:

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

Where:

Current Rent — The tenant's current monthly rent amount
CPI — The Consumer Price Index percentage change for your region
5% — The fixed percentage allowed under AB 1482
10% — The maximum total increase allowed in any 12-month period

3. Understanding the Rent Cap Formula

Details: The law allows landlords to increase rent by either 5% plus the regional CPI (Consumer Price Index) or 10%, whichever is lower. For example, if CPI is 3%, the maximum increase would be 8% (5% + 3%). If CPI is 7%, the maximum would be 10% (since 5% + 7% = 12%, but capped at 10%).

4. Using the Calculator

Tips: Enter your current rent amount and the current CPI percentage for your region. The calculator will determine the maximum allowable rent increase under AB 1482 for 2025.

5. Frequently Asked Questions (FAQ)

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

Q2: Where do I find the CPI for my area?
A: CPI data is available from the U.S. Bureau of Labor Statistics. Different regions in California may have different CPI values.

Q3: How often can rent be increased under AB 1482?
A: Landlords can only increase rent once every 12 months under AB 1482's provisions.

Q4: Are there local rent control laws that are stricter?
A: Yes, some cities like Los Angeles, San Francisco, and Oakland have local rent control ordinances that may be more restrictive than AB 1482.

Q5: When does the CPI measurement period apply?
A: The CPI change is measured from April of the prior year to April of the current year, as published by the Bureau of Labor Statistics.