Sacramento landlords get new limit for annual rent hikes. What’s the percentage?
Starting this month, Sacramento landlords have a stricter limit for how much they can raise rent for certain apartments.
Landlords of apartments that are covered by the city’s Tenant Protection Program will not be able to raise annual rent more than 7.7%. The new cap, which went into effect Tuesday, is the lowest percentage since 2020.
The previous cap, for the fiscal year that ended Monday, was 8.8%.
Renters are covered by the protections if they live in apartments, duplexes, mobile home parks or single-room occupancy hotels built before Feb. 1, 1995, in the city of Sacramento.
The ordinance, which the council adopted in 2019, caps annual rent increases at 5% plus the change in inflation, up to a maximum total of 10%.
The ordinance also allows landlords to apply to the city to raise the rent above the maximum allowed, as two did in 2024, said Kelli Trapani, a city spokesperson.
The state Legislature also passed a rent control ordinance in 2019, which caps Sacramento rent increases at 7.7% for this year. The state version, which applies to rentals statewide, goes into effect Aug. 1.
Housing insecurity has a direct tie to the homeless crisis. In April, 988 people exited homelessness in Sacramento County, while 1,538 people became homeless, according to data from the nonprofit Sacramento Steps Forward.
Since the state law passed in 2019, tenant groups have been pressuring lawmakers to make the law more strict, arguing that 10% rent increases every year create a serious financial burden that can lead to homelessness.
Assemblymember Ash Kalra, D-San Jose, this year introduced Assembly Bill 1157, which would drop the maximum rent increase cap from 10% to 5%, and expand protections to renters of single-family homes. AB 1157 is a two-year bill that could be heard by state lawmakers in 2026.
The city ordinance also provides eviction protections to residents who have lived in their unit for more than one year. It allows landlords to evict tenants only for “just cause” reasons such as not paying rent, breaching the rental agreement, criminal activity, necessary and substantial repairs, owner move-in and removing the unit from the rental market.
Renters who have concerns or believe their landlord is violating the ordinance can call the city at 916-808-8121 or email tpp@cityofsacramento.org.
This story was originally published July 2, 2025 at 2:05 PM.
