The Rent Stabilization Ordinance limits rent increases in two ways. First, it limits rent increases to no more than one time in any 12-month period. Second, it establishes a limit on the amount rent may be increased. The amount of any rent increase may be no more than 3% or 60% of the most recent 12-month percent change in the Consumer Price Index for All Urban Consumers in the San Francisco-Oakland-Hayward Area (“CPI”) published by the Bureau of Labor Statistics, whichever is less, of the rent charged at the time of the increase.
In other words, rent may be increased if it has been at least 12 months since the last rent increase and the rent increase amount does not exceed the limit. The rent increase amount is the difference between the rent charged before the increase and the rent that would be charged after the increase. That increase amount cannot exceed the lesser of 3% or 60% of the CPI of the rent charged at the time the increase is noticed or requested. As a general rule of thumb, if the CPI is 5% or higher, the maximum rent increase is 3% of the current rent. If the CPI is lower than 5%, the maximum rent increase will be 60% of the CPI of the current rent.