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Rent Increase Calculator California 2025

California AB 1482 Rent Increase Formula:

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

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1. What is California AB 1482 Rent Control?

California's AB 1482 is a statewide rent control law that limits annual rent increases to no more than 5% plus the percentage change in the cost of living (CPI), or 10%, whichever is lower. This applies to most rental properties in California that are more than 15 years old.

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:

Explanation: The formula calculates the maximum allowable rent increase under California law, which is the lesser of 10% or (CPI + 5%).

3. Understanding the Rent Increase Formula

Details: The CPI used should be the percentage change from April of the prior year to April of the current year for the region where the property is located. The 5% base increase plus CPI cannot exceed 10% in any 12-month period.

4. Using the Calculator

Tips: Enter the current rent amount in USD and the applicable CPI percentage. The calculator will show the maximum allowed new rent, the percentage increase, and the dollar amount of the increase.

5. Frequently Asked Questions (FAQ)

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

Q2: How often can rent be increased under AB 1482?
A: Rent can only be increased once every 12 months under AB 1482.

Q3: Where do I find the correct CPI for my area?
A: The CPI is published by the Bureau of Labor Statistics. Different regions in California may have different CPI values.

Q4: Can local rent control laws be stricter than AB 1482?
A: Yes, local ordinances can impose stricter limits. AB 1482 sets the maximum allowed statewide, but cities can set lower limits.

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

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