The City of Sacramento’s Tenant Protection Program (TPP) establishes limits on annual rent increases for covered residential rental units. Effective July 1, the maximum allowable annual rent adjustment will be 8.6% for covered rental units.

The Sacramento Tenant Protection Act, adopted by the City Council in 2019, establishes tenant protections by providing pre-eviction safeguards, limiting rent increases, and setting clear requirements for landlords.

“Changes to rent can have a significant impact on both tenants and housing providers,” said Bridget Casey, program manager in the Community Development Department. “Our goal is to help the community understand how the annual rent adjustment is calculated and ensure everyone has access to accurate information about the Tenant Protection Program.”

The annual rent adjustment is based on a formula established in the TPP that combines a 5% base increase with the annual change in the California Consumer Price Index (CPI). For 2026, the California Department of Industrial Relations reported a 3.6% increase in the April CPI, resulting in the 8.6% maximum adjustment.

Under the TPP, landlords of covered rental units may not increase rent by more than the annual adjustment maximum or more than once every 12 months.

Eligible tenants who have lived in a covered rental unit for more than 12 months and one day are protected from eviction unless a “just cause” reason exists under Sacramento City Code Chapter 5.156.090. Tenants cannot waive these protections.

Landlords who violate the annual rent adjustment requirements may be subject to administrative penalties of up to $25,000.

For more information about annual rent adjustment limits, tenant and landlord rights and responsibilities, or whether a rental unit is covered by the Tenant Protection Program, visit the City’s website, call 916-808-8121 or email tpp@cityofsacramento.org.