Starting July 1, renters in Sacramento who live in units covered by the city’s Tenant Protection Program are dealing with a new number: the maximum annual rent increase has been set at 8.6%. For those units, rent can only go up once in any 12-month period, according to the city. That single change will shape how many lease renewals and month-to-month notices look for both tenants and smaller landlords inside city limits.
On X, the City of Sacramento rolled out the new figure and used the moment to remind renters that “rent may not be increased more than once every 12 months.”
Which rental units are covered
The Tenant Protection Program does not apply to every address in town. It generally covers most apartments and duplexes that were built before February 1995, certain mobilehome rentals and single-occupancy rooms rented for more than 30 days. Single-family homes and condominiums are usually excluded from the rules.
The city summarizes coverage details and program rules on its Tenant Protection Program page. Tenants and landlords who are not sure whether a particular unit is covered are urged to check the city’s guidance or call the program office for clarification before assuming the cap applies.
How the cap is calculated
The statewide framework created by AB 1482 limits most annual rent increases to 5% plus the regional Consumer Price Index, or 10%, whichever is lower, as set out in the California Civil Code. According to regional data from the Bureau of Labor Statistics, April 2026 CPI readings were in the mid 3 percent range, roughly 3.5% for the West region and about 3.8% for the San Francisco metro. Add that to the 5% base and you land near this year’s 8.6% cap for covered Sacramento units.
Under state rules, the specific CPI series that applies depends on whether there is a metropolitan index available for the property’s area. Where a metro index exists, that is the one that gets used; if no such index is published, the statewide index is used instead.
What tenants and landlords should know
Landlords are allowed to raise rent up to the maximum that is legally permitted, but only once every 12 months, and they must provide proper written notice before any increase takes effect. The City of Sacramento’s Tenant Protection Program page explains that landlords who believe the cap blocks them from earning a fair return can file a Landlord Fair Rate of Return petition with the city. Tenants, for their part, can request a Tenant Pre-Eviction Hearing. The city posts program contacts, forms and instructions for both sides.
City officials caution that rent hikes above the program maximum, or more than one increase within a 12-month span for the same unit, can trigger administrative penalties and enforcement actions.
Legal note
State law backs up the local rules with legal remedies. Civil Code Section 1947.12 allows tenants to seek injunctive relief and damages if a landlord demands rent that exceeds the legal cap. Public prosecutors can also bring enforcement actions in appropriate cases.
Tenants who are worried about a rent increase notice are advised to keep copies of all rent notices and receipts, confirm whether their unit is covered by the program and consider contacting tenant legal aid or the city’s Tenant Protection Program office for guidance.
For anyone trying to figure out whether a proposed increase is lawful, the city’s Tenant Protection Program maintains forms and a help line. Tenants can also review the state statute and the Bureau of Labor Statistics CPI data referenced above to calculate the allowable increase for their area. Officials say the city updates the cap annually, and landlords are expected to follow the published limit when they send out renewal or increase notices.
