As of August 1, 2025, new rent increase limits are in effect under California’s AB 1482 Tenant Protection Act. For renters in the Peninsula, this update sets the maximum rent hikes landlords can make over the next 12 months:
San Mateo County: Up to 6.3%
Santa Clara County: Up to 7.7%
That’s lower than last year, when many renters faced potential increases as high as 8.8%. The change reflects cooling inflation and updated Consumer Price Index (CPI) numbers, which the state uses to calculate annual caps.
AB 1482 was passed in 2019 to give tenants more stability. It provides two key protections:
Limits on rent increases
Landlords can raise rent by 5% plus the regional CPI, or 10% total, whichever is lower.
"Just cause” protections
After 12 months of tenancy, a landlord must provide a legally valid reason to end a lease.
Most apartments and multifamily homes built before 2005 are covered, but there are exemptions (like newer buildings, single-family homes owned by individuals, or affordable housing programs).
What This Means for You as a Renter
Predictability: You won’t see your rent jump more than the allowed cap (6.3% in San Mateo, 7.7% in Santa Clara).
No stacking of increases: Landlords can’t “save up” and apply past years’ unused increases all at once.
Protection from sudden moves: If you’ve been in your home for over a year, your landlord must provide a valid reason to terminate your lease.
It’s also worth remembering that local rent control laws can be stricter. For example, some cities like San Jose have their own rules that may cap rent growth even lower.
With inflation cooling, expect smaller allowable increases in the near term. But AB 1482 is in place until at least 2030, so these CPI-based limits will continue shaping the rental market for years to come.
Bottom line for renters: If you live in San Mateo, your maximum increase this year is 6.3%. In Santa Clara, it’s 7.7%. These caps help create stability, but it’s always smart to double-check whether your city has its own rent control rules that may give you even more protection.
Posted on July 25, 2025
