Rent Increase Formula:
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This calculator determines the maximum allowable rent increase for California in 2025 based on current rent, CPI (Consumer Price Index), and California's rent control laws that cap increases at CPI + 5%, with a maximum of 10%.
The calculator uses the formula:
Where:
Explanation: The calculation ensures the rent increase doesn't exceed California's legal limits while accounting for inflation.
Details: Under California's Tenant Protection Act (AB 1482), annual rent increases are capped at 5% + CPI (local or regional), with a maximum of 10% regardless of CPI. This applies to most rental properties more than 15 years old.
Tips: Enter current monthly rent in USD and the relevant CPI percentage. The calculator will determine the maximum legal rent increase for 2025 under California law.
Q1: What CPI measure should I use?
A: Use the regional CPI for your area as published by the Bureau of Labor Statistics. For statewide calculations, use the California CPI.
Q2: Are all rental units covered?
A: Most are covered, but exceptions include units built within last 15 years, single-family homes (unless owned by corporations), and some duplexes where owner occupies one unit.
Q3: How often can rent be increased?
A: No more than once every 12 months for covered units under AB 1482.
Q4: What about local rent control laws?
A: Some cities have stricter limits (e.g., Los Angeles, San Francisco). Always check local ordinances which may override state limits.
Q5: Are there tax implications?
A: Increased rental income is taxable, but landlords may also qualify for additional deductions related to property maintenance and improvements.