Los Angeles rent stabilization ordinance changes affect 650,000 units as city targets affordability pressures facing working-class renters
Beginning February 2, 2026, the City of Los Angeles will formally reset how rent increases work for hundreds of thousands of tenants, approving a major update to the city’s Rent Stabilization Ordinance (RSO) that caps annual rent hikes at a maximum of 4%.
The amendment replaces the previous formula—which allowed increases ranging from 3% to as high as 8%—with a new structure tied more closely to inflation. Under the revised ordinance, allowable increases are calculated at 90% of the Consumer Price Index, with a floor of 1% and a ceiling of 4%. The changes apply to roughly 650,000 rent-stabilized units built on or before October 1, 1978, according to the Los Angeles Housing Department.
City officials say the revision is meant to bring predictability to renters while offering stability to small property owners navigating volatile costs.
“This is about aligning rent increases with economic reality,” housing officials have said in public briefings, emphasizing that the update balances tenant protections with the operational needs of so-called “mom-and-pop” landlords who own much of the city’s older housing stock.
What Changes Under the New RSO
The revised ordinance introduces several significant shifts:
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A firm cap on increases: Annual rent hikes are limited to 90% of CPI, not to exceed 4%.
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Utility surcharges eliminated: Landlords can no longer add separate 1%–2% increases for gas or electricity.
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Dependent fees removed: The controversial 10% increase for adding a dependent—such as a child or elderly family member—is now prohibited.
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Temporary freeze period: Rent increases remain capped at 3% from July 1, 2025, through June 30, 2027.
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Expanded protections: Rent hikes tied to additional lawful occupants, including newborns or caregiving relatives, are explicitly banned.
The RSO covers apartments, condos, townhomes, and duplexes built before the 1978 cutoff—housing types that disproportionately serve working-class Angelenos.
Why It Matters
Los Angeles remains one of the most rent-burdened cities in the country. Census data consistently show that Latino households—who make up nearly half of the city’s renters—are more likely to live in older, rent-stabilized units and to spend over 30% of their income on housing.
Housing advocates argue the changes offer much-needed breathing room amid rising insurance, food, and transportation costs. Landlord groups, while cautious, have acknowledged that clearer rules may reduce legal disputes and volatility.
As Los Angeles continues to debate broader housing reforms, the updated RSO underscores a political reality at City Hall: rent stabilization remains one of the city’s most consequential—and closely watched—policy tools.
The ordinance amendments and implementation guidance are published by the Los Angeles Housing Department.
