The city of Portland has set the allowable rent increase for the 2027 calendar year of 2.6%, which will apply to just over 20,000 units.
The allowable increase reflects a small rise over 2026, which was 2.2%. The highest increase was 7% in 2023, which fell to 2% in 2024.
A new report from Apartments.com finds that the city has one of the tightest rental markets in the country, with rates running 13% higher than the national average and a vacancy rate of 4.4%.
The report also notes that Portland’s cost of living is 14% higher than the national average, with residents paying more than 18% more for utilities, 3.2% more for transportation and just over 1% more for groceries.
Rent control measures
Portland’s rent control ordinance was passed by voters in November 2020 and became effective beginning in January 2021. It provides some protections to tenants, including notice of increases, pending evictions and tenant rights.
The ordinance also established a rent board to respond to tenant complaints, mediate disputes between renters and landlords, and to review landlords’ requests for rent increases beyond the scope of the ordinance.
Annual rent increases are calculated on 70% of the change in the Consumer Price Index for the Greater Boston Metropolitan Area, for the preceding 12 months.
The most recent data from the U.S. Bureau of Labor Statistics finds that from July 2025 to July 2026, that index increased 3.7%, and 70% of that is 2.6%.
Residents of every registered long-term rental will be mailed a notice of the potential increase for the coming year.
Some properties are exempt
Some types of units are exempt from rent control increase limits:
- Units in an owner-occupied building containing two, three, or four dwelling units
- Units where rent is publicly controlled or subsidized (such as Section 8);
- Accessory dwelling units
- Units owned, operated, or managed by municipal housing authorities (such as the Portland Housing Authority)
- Accommodations in a hospital, convent, church, religious facility, or extended care facility
- Dormitories owned and operated by an institution of higher education or by Portland public schools.
Short-term rentals are limited to 301
Additionally, Portland set the new 2027 limit for non-owner-occupied, short-term rentals on the mainland at 1.5% of the total number of registered long-term rental units in the prior year.
As of Sept. 1, the number was 20,064 units, so the limit is set at 301 units.
