How Much Can I Legally Raise Rents This Year?

Short answer: Under California's AB 1482, most apartment owners can raise rent once a year by no more than 5% plus the regional CPI, capped at 10% total [VERIFY current-year figure]. For South San Diego County in 2026, that works out to roughly [VERIFY]%. Buildings older than 15 years are generally covered; some single-family and condo rentals are exempt.

If you own an older building in National City, Chula Vista, or anywhere in South County, this is the number that quietly governs your income. Here is what it means in practice, and the part most owners miss.

The Cap, in Plain Terms

AB 1482 (the California Tenant Protection Act) limits annual rent increases for covered units to 5% plus the local Consumer Price Index, with a hard ceiling of 10% no matter how high inflation runs [VERIFY]. You can raise rent only once in any 12-month period, and you must give proper written notice: 30 days for increases of 10% or less, 90 days for increases above 10%.

The law also includes “just cause” eviction protections for tenants who have lived in a unit for 12 months or more. That means you cannot simply decline to renew a lease to reset rents. Understanding the interaction between the rent cap and just-cause rules is critical for any long-term owner weighing a hold-versus-sell decision.

The Mistake That Costs Owners the Most: Unused Increases Don't Bank

This is the part that surprises nearly every owner we meet. If you skip a year of increases, say you kept a good long-term tenant's rent flat out of loyalty, you do not get to “make up” that increase later beyond the annual cap. The increase you did not take is gone permanently.

Over a decade, an owner who under-raised out of kindness can end up with rents 20 to 30% below what the law would have allowed. That gap does not just reduce your monthly income. It directly lowers your building's sale value, because commercial property is valued on its actual net operating income, not on what rents could be. (For a detailed explanation of how this works, see Your Rents Went Up, Your Building's Value Went Down.)

What's Covered, What's Exempt

Most apartment buildings 15 or more years old are covered by AB 1482. Common exemptions include:

• Single-family homes and condos not owned by a corporation, REIT, or LLC with a corporate member, provided the owner has given the required written notice of exemption
• Housing built within the last 15 years (a rolling date, meaning a building that was exempt last year may become covered this year)
• Owner-occupied duplexes where the owner lives in one unit
• Certain deed-restricted affordable housing units

[VERIFY] your specific building's status with a qualified professional. The exemptions have technical conditions, and a mistake can create liability.

The Local Wrinkle: National City

[VERIFY/REWRITE based on confirmed ordinance status] Beyond the statewide cap, there has been active local pressure in National City for stricter rent rules. As of [date], [describe the actual adopted ordinance or formal proposal precisely, with the real percentage and effective date]. If you own in National City, the local rule, not just AB 1482, may set your ceiling.

Chula Vista and other South County cities currently rely on the statewide cap, but the political momentum is toward more local regulation, not less. If you are weighing whether to sell or hold, understanding where your city sits on this spectrum matters.

A Worked Example: 8-Unit Building in National City

What This Means for Your Decision

None of this means you should sell. It means the math deserves an honest look. Rent caps alone do not determine whether holding or selling is the better path. What matters is how the cap interacts with your specific expenses, your building's age and condition, your personal tax situation, and what you would actually keep after a sale.

If you would like to see exactly where your building stands, what it is worth today and what you would keep after taxes, request a free Property Snapshot. One page, plain English, no pitch.