1. What is the California Rent Increase Formula?

The California rent increase formula calculates the maximum allowable rent increase for 2025 based on current rent and the Consumer Price Index (CPI). The formula ensures rent increases don't exceed 10% annually, even when CPI plus 5% would be higher.

2. How Does the Calculator Work?

The calculator uses the California rent increase formula:

Where:

• \( \text{Current Rent} \) — Current monthly rent amount in USD
• \( \text{CPI} \) — Consumer Price Index percentage
• 5% — Additional allowed increase
• 10% — Maximum allowed annual increase

Explanation: The formula calculates the new rent by applying either CPI plus 5% or 10%, whichever is lower.

3. Importance of Rent Increase Calculation

Details: Accurate rent increase calculation is crucial for both landlords and tenants to comply with California's Tenant Protection Act (AB 1482) and understand housing cost changes.

4. Using the Calculator

Tips: Enter current rent in USD and CPI percentage. Both values must be valid (rent > 0, CPI ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: What is the maximum rent increase allowed in California?
A: The maximum is 10% annually or CPI + 5%, whichever is lower, under AB 1482 (with some exceptions).

Q2: How often can rent be increased?
A: For covered properties, rent can only be increased once every 12 months.

Q3: Are all rental properties subject to this limit?
A: No, some properties are exempt including newer buildings (last 15 years), single-family homes (unless owned by corporations), and duplexes where owner occupies one unit.

Q4: Where can I find the current CPI?
A: CPI data is published by the Bureau of Labor Statistics. The California-specific CPI is typically used.

Q5: What if my rent increase notice exceeds this calculation?
A: Tenants should verify if their property is covered by AB 1482 and consult with a tenants' rights organization if they believe the increase is unlawful.