San Francisco Rent Increase Update (2025–2026)
🚨 San Francisco Rent Increase Update (2025–2026)
Published by SanctumRS Asset Management | Bay Area Property Experts
Understanding Rent Increases in San Francisco
San Francisco’s rental market is protected under the San Francisco Rent Ordinance, which limits how much landlords can increase rent each year for rent-controlled units. These rules affect most multifamily properties built before 1979, but do not limit the initial rent a landlord may charge for a vacant, rent-controlled unit.
For the period March 1, 2025 through February 28, 2026, the allowed rent increase for covered units is 1.4%.
This percentage is set annually by the San Francisco Rent Board and reflects 60% of the Consumer Price Index (CPI) increase for Bay Area consumers.
🏷️ New Rent Increase %: 1.4%
✔️ Effective Dates
👉 March 1, 2025 – February 28, 2026
💰 How to Calculate the Increase
Multiply a tenant’s base rent by 0.014.
Example:
Tenant’s base rent = $2,000
$2,000 × 0.014 = $28 increase
New monthly rent = $2,028
📎 Important: The increase applies to base rent only. Do not include temporary passthroughs or fluctuating charges. Landlords cannot round the increase upward.
📝 Rent Increase License Required
Before applying any annual allowable or banked increases, landlords must first obtain a Rent Increase License by reporting the unit to the Rent Board Housing Inventory.
This mandate applies to:
All rentals as of July 1, 2022
Condominiums and buildings with 1–9 units as of March 1, 2023
Without this license, the increase cannot be legally applied.
⏱️ Timing, Anniversary Dates & “Banked” Increases
The first allowable increase may be applied 12 months after the lease start date.
Once the increase begins, that date becomes the tenant’s anniversary date.
Rent can only be increased once every 12 months.
If a landlord waits longer than 12 months, they may bank the allowable increase and apply it later.
📌 Banking rules are complex—consult a property professional before applying multiple increases.
📬 Required Notice to Tenants
Landlords must provide written notice before the increase takes effect:
Type of IncreaseMinimum NoticeUp to 10%30 daysMore than 10% (including banked increases)90 daysIf notice is mailedAdd 5 extra days
Notices must include:
✔ Dollar amount of the increase
✔ Percentage increase
✔ Effective date of the increase
Use the percentage effective on the increase date, not the date notice is served.
👥 Additional Occupants: No Extra Rent
San Francisco law prohibits landlords from charging more rent simply because a tenant adds a roommate—even if the lease tries to allow it. Additional occupant increases are considered illegal rent increases.
🧾 Special Petitions & Passthroughs
There are certain cases where landlords may request additional increases beyond the allowable 1.4%. These must be petitioned and approved through the Rent Board. Examples include:
Capital improvement passthroughs
Operating and maintenance cost increases
Hardship petitions
Each has strict documentation and approval requirements.
🏢 Need Expert Help Navigating Rent Control?
At SanctumRS Asset Management, we specialize in Bay Area property compliance, rent board filings, tenant relations, and maximizing long-term rental value while staying legally protected.
👉 Property Owners: Get a compliance consultation.
📧 assetmgmt@sanctumrs.com
📞 (408) 767-6628
🌐 SanctumRS Asset Management | Protecting Your Rental Investment
📍 Serving:
San Jose • San Francisco • Oakland • East Bay • Peninsula • Santa Clara County • Contra Costa County
This post is for informational purposes only and does not replace legal advice. Always consult with a licensed property manager or attorney regarding rent control compliance.
