Allowable Rent Increases

  1. The maximum increase within a 12- month period for Residential Rental Properties with 5 or more units is 3% or the cost of inflation (whichever is greater), as measured by the Consumer Price Index (CPI).
  2. The maximum increase within a 12- month period for Residential Rental Properties with 4 or less units is 5% plus the cost of inflation, as measured by the Consumer Price Index (CPI). 
  3. No rent increase may exceed 10%.
  4. The new April CPI figures are published in May of each year.

Units Exempt from the Rent Cap Limitations

  • Units that have been issued a certificate of occupancy within the last 15 years (this applies on a rolling basis - i.e.. a unit constructed on January 1, 2008, is not subject to the Housing Protection Ordinance until January 2, 2023).
  • Dormitories owned and operated by an institution of higher education or K-12 school.
  • Owner-occupied duplex in which one unit serves as owner’s principal place of residence, who occupied the unit prior to the tenant, and continues occupancy.
  • Housing provided by a nonprofit hospital, church, extended care facility, licensed extended care facility for the elderly, or an adult residential facility.
  • Units restricted by a deed, regulatory restrictions, or other recorded document limiting the affordability to low or moderate-income households.
  • Transient and tourist hotel occupancy as defined by Civil Code Section 1940(b).
  • Single-family homes and condominiums if both (A) and (B) apply:

    1. The  property is owned by a natural person or family trust.
       
      -----AND----

    2. The landlord notified the tenant in writing that the tenancy is not subject to the “just cause” eviction protections and rent increase limitations as specifically described in Civil Code Sections 1946.2(e)(8)(B)(i) and 1947.12(d)(5)(B)(i). 


Important Notes:

  • All Section 8 rent increases must be submitted to the Section 8 Division to be processed.
  • After a 30-Day Notice of Change in Terms is served on a Tenant the Property Owners must record their rent increases through the online Inglewood Residential Registry System.  

 

Below Market Rent Increases

  • If a Property Owner of any residential property containing five or more dwelling units that is subject to the Housing Protection Ordinance, charges an existing tenant rent for a rental unit that is less than eighty percent (80%) of Fair Market Rents, upon approval of the Program Administrator, the Owner may increase the percentage by an additional five percent (5%), not to exceed ten percent (10%).
     
    The Program Administrator shall only approve Rent increases for 12-month periods under this section until the Rent reaches or exceeds eighty one percent (81%) of Fair Market Rents.
      
  • If a Property Owner of any residential property containing four or fewer dwelling units that is subject to the Housing Protection Ordinance, charges an existing tenant rent for a rental unit that is less than 80% of Fair Market Rents for a comparable unit, upon approval of the Program Administrator, the Property Owner may increase the percentage by an additional two percent (2%), not to exceed ten percent (10%). 

    The Program Administrator shall only approve rent increases for 12-month periods under this section until the rent reaches or exceeds eighty one percent (81%) of Fair Market Rents.
      
  • The U.S. Department of Housing and Urban Development’s Office of Policy Development and Research’s (HUD PD&R) annually releases its Fair Market Rents for Los Angeles County for October 1st.  The chart below shows the Fair Market Rents (FMR) for Fiscal Year 2022-2023 and the 80% below threshold:


FY 2023 CURRENT ALLOWABLE RENT INCREASE FIGURES

CPI (INFLATION) – 7.9% (New Figures published in May of each year)

4 UNITS OR LESS (5% + CPI) 
10%
5 UNITS OR MORE (3% OR CPI, whichever is greater)
7.9%


 

For Rents that are less than 80% of Fair Market Value 
and upon approval from the Deputy Director of HP

4 UNITS OR LESS (5% + CPI) **
10%
5 UNITS OR MORE**
10%


FMR Chart (Effective October 1, 2022)

UNIT TYPE

FMR

80% OF FMR

70% OF FMR

0 BEDROOMS

$1,534.00

$1,227.20

$1,073.80

1 BEDROOM

$1,747.00

$1,397.60

$1,222.90

2 BEDROOMS

$2,222.00

$1,777.60

$1,555.40

3 BEDROOMS

$2,888.00

$2,310.40

$2.021.60

4 BEDROOMS

$3,170.00

$2,536.00

$2,219.00

5 BEDROOMS

$3,645.50

$2,916.40

$2,551.85

* These figures are in effect until October 1, 2023

Important Notes

  • All Section 8 rent increases must be submitted to the Section 8 Division to be processed.
  • After a Below Market Rent Increase has been approved by HPD, a 30-Day Notice of Change in Terms must be served to the Tenant and Property Owners must record their rent increase within the online Inglewood Residential Registry System.