California Rent Increase Laws Sacramento Landlords Need to Know in 2026

By Alpha Property Management | Published August 12, 2026

Quick answer: Sacramento landlords face an 8.6 percent rent-increase ceiling in 2026 under both California's statewide cap and the City of Sacramento's own ordinance. State law permits up to two rent increases in any 12-month period as long as the combined total stays under the cap; the city allows only one. The two laws also part ways on covered properties, termination notice, and relocation requirements, so check both before raising rent or ending a tenancy.

Sacramento landlords are dealing with two overlapping rent control systems right now: California's statewide Tenant Protection Act and the City of Sacramento's own Tenant Protection and Relief Act. They use similar formulas but different covered-property tests, different calculation cycles, and different paperwork. Getting either one wrong is expensive. Here is what actually applies in 2026, with the current numbers filled in.

AB 1482: California's Statewide Rent Cap

The Tenant Protection Act of 2019 (Civil Code § 1947.12 for rent caps, § 1946.2 for just cause) covers most residential rental housing that is more than 15 years old. It exempts deed-restricted affordable housing, dormitories, housing already under a stricter local rent control ordinance, housing with a certificate of occupancy issued in the last 15 years, and (with conditions) single-family homes and condos. A duplex where the owner occupies one unit at the start of the tenancy is also exempt.

For the single-family or condo exemption to hold up, the owner cannot be a real estate investment trust, a corporation, or an LLC with a corporate member, and the tenant must have received written notice using the exact statutory language. The required wording is in the exemption section below.

The 2026 Rent Increase Cap for Sacramento

The statewide cap is 5 percent plus the change in the regional Consumer Price Index, capped at 10 percent total, whichever is lower (Civ. Code § 1947.12(a)). For rent increases taking effect between August 1, 2026 and July 31, 2027, the California Department of Justice's published rent-cap chart places Sacramento County in the "all other counties" bucket at 8.6 percent (5% 3.6% CPI). State law allows up to two rent increases in any 12-month period, as long as their combined total does not exceed the cap; the City of Sacramento's ordinance is stricter and allows only one increase per 12-month period, regardless of how long the tenant has lived in the unit.

Notice Periods: 30 Days vs. 90 Days

Civil Code § 827 sets the notice requirement, and AB 1482 increases follow it: 30 days' written notice if the increase is 10 percent or less of the rent charged at any point in the prior 12 months, and 90 days' written notice if the increase is more than 10 percent.

City of Sacramento's Own Ordinance: Where It's Stricter (and Where It Isn't)

Sacramento City Code Chapter 5.156, the Tenant Protection and Relief Act, runs on its own July 1 to June 30 cycle and is currently also set at 8.6 percent, effective July 1, 2026. It differs from the state law in several ways:

• It allows only one rent increase per 12-month period, while state law allows up to two as long as the combined total stays within the cap.
• It requires annual property registration and a $20-per-unit program fee that AB 1482 does not impose.
• It covers apartments, duplexes, mobile home rentals, and single-occupancy hotel rooms rented longer than 30 days if they were built or established before February 1995, rather than using AB 1482's rolling 15-year cutoff.
• It excludes single-family homes, condos, and stock cooperatives outright, with no ownership-type test required.
• Landlords can petition the city for a "fair rate of return" hearing to exceed the cap, with supporting documentation.

Violations of the city ordinance carry administrative penalties of up to $25,000 per offense.

Just Cause Termination and Relocation Assistance

Once a tenant has occupied a unit for more than 12 months, both state and city law require "just cause" to end the tenancy. At-fault just cause includes nonpayment of rent, a material lease breach, nuisance, or similar tenant-side violations. No-fault just cause (owner move-in, withdrawal of the unit from the rental market, government order to vacate, or substantial repairs requiring the unit to be empty) requires the landlord to either pay the tenant relocation assistance equal to one month's rent or waive the final month's rent in writing before it becomes due (Civ. Code § 1946.2(d)).

The City of Sacramento's ordinance layers additional requirements on top of the state rule rather than replacing it. Chapter 5.156 requires 120 days' notice for no-fault terminations based on substantial repairs requiring the unit to be vacant, owner move-in, or withdrawal from the rental market. For substantial-repair terminations specifically, the ordinance also gives the tenant the right to reoccupy the unit or move into a comparable vacant unit once repairs are complete. That reoccupancy/comparable-unit election does not apply to owner move-in or market-withdrawal terminations. When a tenancy is covered by both laws, a landlord may need to satisfy the state's one-month relocation payment and the city's 120-day notice (and, for repairs, the reoccupancy or comparable-unit rule) at the same time.

Single-Family and Condo Exemptions: The Paperwork That Preserves Them

To claim the state-law exemption for a single-family home or condo, the lease or a separate written notice must include this exact statutory language (Civ. Code § 1947.12(d)(5), § 1946.2(e)(8)):

"This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12(d)(5) and 1946.2(e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation."

The exemption only holds up if both conditions are met: qualifying noncorporate ownership and the statutory notice. Skip the notice, or have a disqualifying ownership structure, and the exemption does not apply. Either failure alone is enough to bring the property under AB 1482. The City of Sacramento ordinance does not require this paperwork because it excludes single-family homes and condos categorically, regardless of ownership structure.

What Happens When a Landlord Gets It Wrong

Under Civil Code § 1947.12(k), a tenant who was overcharged in violation of the cap can sue for injunctive relief, damages equal to the excess rent collected, attorney's fees, and, if the violation was willful, oppressive, fraudulent, or malicious, up to three times actual damages. An improper just-cause termination notice is void outright under § 1946.2. Separately, the City of Sacramento can impose administrative penalties of up to $25,000 per violation for registration or rent-cap violations under Chapter 5.156.

Common Landlord Mistakes

• Assuming a single-family home or condo is automatically exempt from AB 1482 without confirming both the ownership structure and the written statutory notice. Missing either one keeps the property fully covered.
• Applying the state's two-increases-per-year allowance to a unit that is also covered by the Sacramento ordinance, which caps increases at one per 12-month period.
• Assuming the city's 120-day notice requirement replaces the state's one-month relocation payment, when a covered tenancy may require satisfying both, and applying the reoccupancy or comparable-vacant-unit rule to owner move-in or market-withdrawal terminations when Chapter 5.156 limits it to substantial-repair vacancies.
• Sending a 30-day rent increase notice when the increase exceeds 10 percent of the rent charged at any point in the prior year, instead of the 90 days the law requires.
• Skipping annual registration and the $20-per-unit program fee under Chapter 5.156, which applies even when a property otherwise complies with the rent cap.

Frequently Asked Questions

How much can a landlord raise rent in Sacramento in 2026?
For most covered units, 8.6 percent is the current ceiling under both state and city law for the active cycle (5 percent plus CPI, never more than 10 percent).

Does AB 1482 apply to single-family homes?
The exemption requires both qualifying noncorporate ownership and the statutory written notice. If either one is missing (the owner is a real estate investment trust, a corporation, or an LLC with a corporate member, or the required notice was never provided), the exemption fails and AB 1482 applies.

How much notice does a rent increase require?
30 days for increases of 10 percent or less, 90 days for anything above that.

What is relocation assistance?
Under state law (Civ. Code § 1946.2(d)), it is one month's rent, paid directly or waived off the final month, required for no-fault terminations after 12 or more months of tenancy. The City of Sacramento's ordinance adds its own 120-day notice requirement for no-fault terminations, plus a right to reoccupy the unit or move into a comparable vacant unit specifically for substantial-repair terminations (not owner move-in or market withdrawal). If a tenancy is covered by both laws, the landlord may need to satisfy both the state's relocation payment and the city's notice and reoccupancy rules.

Does the City of Sacramento's rule differ from the state cap?
Yes. It runs on a different annual cycle, allows only one rent increase per 12-month period instead of the state's two, requires property registration and a per-unit fee, uses a fixed 1995 construction cutoff instead of a rolling 15-year exemption, adds a 120-day notice requirement (and, for substantial-repair terminations only, a reoccupancy or comparable-vacant-unit right) on top of the state's rules rather than replacing them, and excludes single-family homes and condos outright.

Getting the cap, the notice period, and the exemption paperwork right, every time, across every unit, is exactly what a property manager is paid to handle. See Full-Service Property Management →

Sources: Cal. Civ. Code § 827, § 1946.2, § 1947.12; California Department of Justice, Limits on Rent Increases (oag.ca.gov/rentcaps); City of Sacramento Tenant Protection Program, Sacramento City Code Chapter 5.156; Sacramento Housing and Redevelopment Agency. Figures current as of August 12, 2026 and scheduled for review each January when new CPI figures are published.