San Francisco Rent Control Ordinance: Complete 2026 Owner & Tenant Guide
What the allowable increase actually is, which buildings are exempt, and the 16 reasons a landlord can legally evict you. No fluff. Just the rules.
San Francisco's Rent Ordinance (Chapter 37 of the Administrative Code) caps annual rent increases for most units built before June 13, 1979 and requires landlords to have one of 16 legally recognized reasons to evict any tenant. For 2025-2026, the allowable annual increase is 1.4%. Single-family homes and condos are exempt from rent increase limits under Costa-Hawkins but are still subject to just-cause eviction rules. If you own or rent in SF, this guide covers everything that actually matters.
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Call (510) 277-4420 Browse Bay Area ListingsWhich San Francisco Rental Units Are Covered by Rent Control?
This is where most people get confused, because there are two layers of protection that apply independently: rent increase limits and just-cause eviction protections. A unit can qualify for one without the other. Let me break both down.
Rent Increase Limits (Full Rent Control)
To qualify for rent increase limits under the San Francisco Rent Ordinance, a unit must meet all of the following:
- The building must have been issued its Certificate of Occupancy before June 13, 1979 (or substantially completed before that date if no formal certificate exists)
- The unit must be residential
- The unit must not be a single-family home or condominium (these are exempt under Costa-Hawkins at the state level)
- The building must have two or more residential units
- The unit must not be a government-subsidized housing unit, hotel, or dormitory with a separate set of rules
If all those boxes are checked, the unit is subject to the annual allowable increase set by the SF Rent Board. Landlords cannot raise rent beyond that cap without filing a petition for an increase based on capital improvements, increased operating costs, or other allowable reasons.
Just-Cause Eviction Protections
Just-cause eviction rules cast a wider net than rent increase limits. Under the SF Rent Ordinance, just-cause protections apply to most residential tenants who have lived in a unit for at least 12 months, even if the unit is otherwise exempt from rent caps. California's AB 1482 (Tenant Protection Act of 2019) also added a statewide just-cause eviction requirement for units built more than 15 years ago that are not covered by a local ordinance.
A newer condo may be exempt from SF's annual rent cap but the tenant inside it still has just-cause eviction protections. The landlord cannot simply choose not to renew the lease once it expires. That surprises a lot of owners who bought condos as investment properties expecting more flexibility.
Units Typically Exempt from Both Protections
- Units where the tenant shares the kitchen or bath with the owner-occupant (owner-occupied single-family or condo)
- Units in buildings where the owner owns no more than two units and occupies one as their primary residence (applies to just-cause under certain state rules)
- Government-operated or nonprofit public housing with its own regulatory agreement
- Short-term rentals (Airbnb-style) for fewer than 30 days
If you are unsure about your specific unit, the SF Rent Board offers free counseling at (415) 252-4602. I have sent clients there many times when the ownership structure or construction date was ambiguous. Do not guess on this one.
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Call (510) 277-4420 Text UsCosta-Hawkins: Understanding the Exemption Math
Costa-Hawkins is a 1995 California state law that overrides local rent control ordinances in three important ways. Every SF landlord and tenant needs to understand this law, because local advocates and city officials sometimes imply SF's Rent Ordinance is more powerful than it actually is.
The Three Costa-Hawkins Rules
1. Property Type Exemption. Single-family homes and condominiums are exempt from local rent increase caps, regardless of when they were built. In SF, this means a pre-1979 condo that would otherwise qualify for the Rent Ordinance is still exempt from the annual allowable increase. The landlord can raise rent by any amount when a new tenancy begins. Once a tenant is in place, however, just-cause eviction protections still apply under the local ordinance.
2. New Construction Exemption. Any unit first certificated for occupancy on or after February 1, 1995 is exempt from local rent caps. The SF Rent Ordinance uses a slightly earlier cutoff (June 13, 1979), so essentially all post-1979 units are exempt under either the local ordinance's cutoff or Costa-Hawkins.
3. Vacancy Decontrol. This is the one with the most financial impact. When a rent-controlled tenancy ends voluntarily (the tenant moves out on their own), the landlord is allowed to reset the rent to market rate for the next tenant. The new tenant then starts a new base rent, which is controlled from that point forward. This prevents the rent from staying below market forever and is a central reason landlord economics in SF depend heavily on tenant turnover.
A tenant paying $1,400/month on a pre-1979 unit in the Mission District when the market rate is $3,200/month represents roughly $21,600/year in below-market rent. When that tenant leaves voluntarily, the landlord can reset to $3,200. When a landlord uses an illegal eviction or harassment to force that tenant out, the penalties include a right of return at the old rent plus triple damages. The financial stakes on both sides are enormous.
What Prop 33 (2024) Would Have Changed
California voters rejected Proposition 33 in November 2024, which would have repealed Costa-Hawkins and allowed cities to expand rent control to single-family homes, condos, and newer buildings. SF advocates had already drafted expanded ordinances pending the outcome. The defeat means Costa-Hawkins remains intact, at least for now. If you are buying or selling SF investment property, this is a political risk worth monitoring. Repeal attempts have been on the ballot twice (2018 and 2024) and both failed, but the advocacy pressure continues.
The Allowable Annual Rent Increase: How It Works in 2026
Every year, the SF Rent Board sets the allowable annual increase for covered units. The formula is 60% of the prior calendar year's change in the Consumer Price Index (CPI) for the San Francisco-Oakland-Hayward metropolitan area, as reported by the Bureau of Labor Statistics.
Recent Allowable Increase History
| Period | Allowable Increase | Bay Area CPI Change | Notes |
|---|---|---|---|
| March 2025 - Feb 2026 | 1.4% | 2.3% | Currently in effect |
| March 2024 - Feb 2025 | 1.7% | 2.9% | Prior period |
| March 2023 - Feb 2024 | 3.6% | 5.9% | Elevated inflation period |
| March 2022 - Feb 2023 | 2.3% | 3.8% | Post-pandemic rebound |
| March 2021 - Feb 2022 | 0.0% | Below threshold | Freeze during COVID deflation period |
Rules for Implementing an Allowable Increase
- The landlord must serve proper written notice: 30 days for increases under 10%, 90 days for increases of 10% or more (though the allowable amount has never reached 10% since the ordinance was enacted)
- The increase must be calculated off the tenant's current lawful base rent
- Landlords can bank allowable increases for up to two prior years and take them all at once, but only up to a maximum of three years' worth in a single increase
- The increase cannot be imposed more than once in any 12-month period without Rent Board approval
Your "base rent" for purposes of the allowable increase is the lawful rent in effect on May 25, 1979, or the initial rent when your tenancy began (whichever is later). If your landlord raised your rent beyond the allowable amount in a prior year, those excess amounts may be subject to a reduction petition. The SF Rent Board handles these petitions and they are more common than most tenants realize.
Petitions for Additional Increases
A landlord who wants to raise rent beyond the annual allowable increase must file a petition with the Rent Board and prove the increase is justified. Common grounds include documented capital improvements to the unit, increased operating and maintenance costs, and inadequate net operating income. These petitions are contested proceedings where tenants have the right to participate and challenge the landlord's evidence. From what I have seen representing buyers of rent-controlled buildings in the Bay Area, capital improvement petitions take six months to a year to resolve and often result in smaller increases than the landlord requested.
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Call (510) 277-4420 View SF Multi-Family ListingsJust-Cause Eviction: All 16 Legally Recognized Grounds
The just-cause requirement is what makes SF one of the most tenant-protective cities in the country. A landlord cannot simply decide to end a tenancy. One of the following 16 reasons must apply, and the landlord must be able to prove it in a court proceeding if the tenant contests the eviction.
| # | Just-Cause Ground | Relocation Assistance Required? | Key Condition |
|---|---|---|---|
| 1 | Nonpayment of Rent | No | Rent must be lawfully due and not paid after notice |
| 2 | Breach of Lease | No | Material breach must persist after notice to cure |
| 3 | Nuisance / Damage to Unit | No | Must be substantial and documented |
| 4 | Illegal Use of Unit | No | Tenant using unit for unlawful activity |
| 5 | Refusal to Allow Legal Entry | No | Tenant repeatedly denies required access after notice |
| 6 | Failure to Sign New Lease | No | Landlord offers materially identical terms; tenant refuses |
| 7 | Unapproved Subletting | No | Tenant sublets without landlord approval when prohibited |
| 8 | Employee Tenancy Ends | No | Unit was a job-required residence and employment ends |
| 9 | Unapproved Holdover Subtenant | No | Original tenant left; unauthorized subtenant remains |
| 10 | Owner Move-In (OMI) | Yes | Owner or qualifying relative must actually move in |
| 11 | Relative Move-In (RMI) | Yes | Qualifying relative must actually occupy for 36 months |
| 12 | Ellis Act Withdrawal | Yes | All units withdrawn from rental market at once |
| 13 | Demolition or Major Renovation | Yes | Permitted demolition or renovation making unit uninhabitable |
| 14 | Lead Paint Remediation | Yes | Documented lead hazard requires temporary relocation |
| 15 | Capital Improvement Work | Yes | Permitted work that requires temporary vacancy |
| 16 | Condo Conversion - OMI | Yes | Owner-occupant taking unit after approved condo conversion |
Serving an eviction notice for a "lease violation" that does not rise to the level of material breach, or serving a notice without a specific legally recognized ground, is a defective notice. A tenant who contests such a notice has a strong case. In San Francisco, tenants who win wrongful eviction cases can recover actual damages, punitive damages up to three times actual damages, and attorney's fees. The financial exposure for getting this wrong is severe.
What Happens After the Eviction Notice
If the tenant does not vacate, the landlord must file an Unlawful Detainer (UD) action in SF Superior Court. SF has a designated housing department for these cases. The tenant has the right to a jury trial. The burden of proof is on the landlord to establish the just-cause ground. Landlords who lose UD cases for fault-based grounds (like nuisance) often face the same attorney's fee exposure as in wrongful eviction cases. I strongly recommend any SF landlord considering an eviction consult with a housing attorney before serving any notice.
Owner Move-In (OMI) Evictions: The Rules That Trip People Up
Owner move-in is one of the most contested areas of SF tenant law because the rules are genuinely complex and the stakes are high. I have seen buyers lose significant money, and face serious legal exposure, by misunderstanding what OMI actually requires.
Who Qualifies as the Owner
For an OMI eviction, the person seeking to move in must be a "qualifying owner." That means they must own at least a 25% interest in the property (not just be a co-investor with a small stake). For a relative move-in, the qualifying relatives are: spouse, domestic partner, child, parent, grandparent, grandchild, brother, or sister. The relative must intend to occupy the unit as their principal residence for at least 36 consecutive months.
Notice Requirements
- 60 days written notice for tenants who have lived in the unit for less than one year
- 60 days written notice for most tenants
- One year notice for tenants who are 60 or older and have lived in the unit for 10 or more years
- One year notice for tenants with a disability who have lived in the unit for 10 or more years
- One year notice for tenants with catastrophic illness who have lived in the unit for 10 or more years
Limitations on OMI Evictions
- Only one OMI eviction is allowed per building at any time
- If a comparable unit becomes available in the same building, the landlord must offer it to the displaced tenant first, at their old rent
- If the owner does not actually move in within three months of the tenant vacating, the tenant has a right of return at their old rent
- If the owner moves out within 36 months, the tenant has a right of first refusal to move back in at their original rent
- The city maintains a public OMI eviction database. Tenants can look up whether a prior OMI has already been used on a particular building
SF actively investigates fraudulent OMI evictions. If a landlord serves an OMI notice but then rents the unit to a third party at market rate, the displaced tenant can file a wrongful eviction claim and recover substantial damages. The city also maintains the ability to recover the unit for the original tenant and impose fines on the landlord. This is not a theoretical risk. SF courts see these cases regularly.
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Call (510) 277-4420 Text UsEllis Act: When a Landlord Wants to Exit the Rental Business
The Ellis Act is a California state law that allows any landlord to withdraw their property from the rental housing market entirely. It is not a tool for evicting one inconvenient tenant. It requires withdrawing every residential unit in the building from rental use at the same time. That is a significant operational and financial commitment.
What Ellis Requires
- Notice of withdrawal must be filed with the SF Rent Board and the SF Planning Department
- 120 days notice to most tenants after the withdrawal notice is filed with the Rent Board
- One year notice to tenants who are 62 or older or who have a disability and have lived in the unit for one or more years
- All units in the building must be withdrawn (you cannot do a partial Ellis)
- Substantial relocation assistance must be paid (see Relocation section below)
What Happens After Ellis
Once the units are withdrawn, the landlord cannot rent them again without re-entering the rental market through the Rent Board. If the landlord re-rents any unit within two years, the displaced tenants have an absolute right to return at their original rents. If re-rented between two and ten years, the displaced tenants still have a right of first refusal at their original rents. After ten years, the landlord can rent freely, but most conversions go in the direction of condos or owner-occupied use, not re-renting at market rate. In practice, Ellis Act withdrawals in SF typically precede condo conversions or the owner's personal use of the property.
Many SF investors use the Ellis Act as a pathway to condo conversion for buildings that do not qualify under the standard condo conversion lottery. SF's condo conversion rules are extremely restrictive. Ellis is one of the few legitimate paths to converting a multi-unit rental building to individual ownership units. However, the city tracks Ellis evictions closely, and buildings that used Ellis in the prior ten years face scrutiny and potential restrictions on resale of converted units.
Relocation Assistance: What Landlords Owe and When
Relocation assistance is required for any "no-fault" eviction, meaning one where the tenant did nothing wrong and is being asked to leave for the landlord's benefit. The amounts in SF are among the highest in California and are updated annually by the Rent Board.
How Relocation Assistance Is Calculated for OMI and Ellis
For OMI and Ellis Act evictions, the formula has two parts:
- Fixed base amount: approximately $7,614 per tenant as of 2025, up to a maximum of three tenants per unit (so up to $22,842 per unit for three or more tenants)
- Rent differential component: 24 times the difference between the tenant's current monthly rent and the HUD Fair Market Rent for a comparable unit in San Francisco
For a tenant paying $1,800/month in a unit where HUD FMR for a comparable unit is $3,400/month, the rent differential component alone would be 24 x ($3,400 - $1,800) = 24 x $1,600 = $38,400. Add the fixed amount per tenant and the total relocation obligation for one tenant could exceed $46,000. For multiple long-term tenants in a large unit, total relocation obligations in the $100,000+ range are not uncommon for SF Ellis Act withdrawals.
Enhanced Relocation for Protected Classes
- Tenants who are 60 or older receive 200% of the base relocation amount
- Tenants with a disability receive 200% of the base relocation amount
- Households with a minor child receive 200% of the base relocation amount
- Tenants who are catastrophically ill receive 200% of the base relocation amount
Timing of Payment
Relocation assistance must be paid within 24 hours of serving the eviction notice. This is not a soft deadline. Failure to pay within that window can invalidate the entire eviction proceeding. I have seen buyers plan an OMI eviction without realizing they needed to have a check ready the moment the notice was served. Plan for this in advance with your attorney and ensure the funds are liquid.
For Tenants Facing No-Fault Eviction
- Relocation payment is mandatory and must come day-one
- Protected class status doubles the base amount
- Right of return if landlord re-rents within two years
- Right of first refusal for up to ten years in Ellis cases
- Can dispute relocation amount with the Rent Board
Limitations Tenants Should Know
- Relocation does not require the landlord to find you housing
- You must vacate by the notice deadline even if housing is hard to find
- Right of return lapses if you do not respond to landlord's offer promptly
- Amounts, while large, may not cover actual SF market replacement cost
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Call (510) 277-4420 Browse SF Multi-Family ListingsTenant Anti-Harassment Ordinance: What Landlords Cannot Do
Chapter 37A of the San Francisco Administrative Code specifically prohibits landlord conduct designed to pressure tenants into vacating their units. The city enacted this because some landlords historically used indirect pressure rather than formal eviction. Tactics included interrupting services, threatening tenants, or making life uncomfortable as a way to force out rent-controlled tenants without triggering just-cause requirements or relocation obligations.
Prohibited Conduct Under Chapter 37A
- Interrupting or terminating housing services (heat, water, utilities, garbage) without court order or emergency
- Refusing to accept lawfully tendered rent payments
- Interfering with the tenant's right to quiet enjoyment of the unit
- Threatening the tenant with physical harm or property damage
- Entering the unit without proper notice (24 hours in most circumstances)
- Filing false eviction petitions with the Rent Board or court
- Substantially deteriorating the property or failing to make repairs to a unit where only that tenant is affected
- Offering money to induce a tenant to vacate (this must go through a formal buyout agreement process to be legal)
- Misrepresenting facts about the tenant's rights or the landlord's intentions
Buyout Agreements: The Legal Alternative
SF does allow landlords and tenants to negotiate buyout agreements, which are cash payments in exchange for the tenant voluntarily vacating. However, these must follow specific procedures. The landlord must give the tenant a disclosure form at least 30 days before making any buyout offer. The tenant has a right to rescind any signed buyout agreement within 45 days. Buyout agreements must be filed with the Rent Board within 59 days of signing. Violations of the buyout procedure are treated as harassment. If you are considering a buyout as a landlord strategy, do it through the formal process with an attorney. If you are a tenant being offered a buyout, know that you have 45 days to change your mind after signing.
Remedies for Harassment
Tenants who prove harassment in SF Superior Court can recover:
- Actual damages (lost rent, moving costs, medical or psychological treatment costs)
- Emotional distress damages
- Punitive damages (can be substantially higher than actual damages in egregious cases)
- Injunctive relief requiring the landlord to restore services or stop the conduct
- Attorney's fees
If you are a tenant experiencing any of the conduct listed above, document it immediately. Text messages, emails, written communications, photos of repair failures, and dates of service interruptions all become evidence. The best harassment cases are won on contemporaneous documentation, not memory. Start a log today.
Buying Rent-Controlled Property in SF: What Investors Need to Know
In 13 years of doing real estate across California, including work on Bay Area income properties, the thing I see investors underestimate most is how rent control rewrites the investment math on a building. Not just slightly. Fundamentally.
The Core Economic Reality
When you buy a rent-controlled building in SF, you are not buying current cash flow. You are buying the gap between current rents (controlled) and future market rents (when tenants turn over). In neighborhoods like the Mission, Tenderloin, or Inner Richmond, it is common to find buildings where sitting rents are 40-60% below current market rates. The building's value depends heavily on the probability of tenant turnover, which no one can predict with certainty.
This is why experienced SF multifamily investors price deals based on two models: the "current rent roll as-is" value and the "market rent at full turnover" value. A building might be worth $2.2M on today's rents and $3.8M if every unit turned over tomorrow at market rates. You are buying something in between, with no guarantee of when or whether turnover happens.
Due Diligence Checklist for Rent-Controlled SF Buildings
- Pull the Rent Board's OMI and Ellis Act eviction history for the address (check for prior evictions that affect your rights)
- Request copies of all current leases and review the base rent for each unit
- Calculate the rent differential between each unit's current rent and current HUD Fair Market Rent
- Confirm each tenant's move-in date and whether any qualify for enhanced relocation or extended notice periods
- Review any pending Rent Board petitions for rent increases or reductions on the property
- Confirm the building's Certificate of Occupancy date (pre or post-1979)
- Check for any active code violations or deferred maintenance that could expose you to habitability liability
- Ask the seller directly: have any tenants received any buyout offers, OMI notices, or formal complaints in the last five years?
In the higher-interest-rate environment of 2024-2026, the combination of elevated debt service and suppressed rents on rent-controlled buildings has compressed cap rates and squeezed cash flow. Some SF multifamily sellers are seeing price expectations that made sense at 3% rates become impossible to underwrite at 6.5-7%. If you are buying, do not let seller price expectations anchor your underwriting to pre-rate-hike assumptions. Run the numbers on today's cost of capital.
Internal Links for Further Reading
If you are evaluating Bay Area investment property, the SF rent control picture does not exist in isolation. Understanding how to analyze a multifamily deal alongside related considerations like California multifamily investing basics and AB 1482 statewide tenant protections gives you a complete picture. For landlords navigating the operational side, see our guides on California landlord-tenant law and the 2026 Bay Area real estate market overview.
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Call (510) 277-4420 Browse All SF ListingsSF Rent Control Quick Reference Cheat Sheet
| Question | Answer |
|---|---|
| What is the 2025-26 allowable annual increase? | 1.4% (March 2025 through February 2026) |
| What buildings are covered by rent increase limits? | Pre-June 13, 1979, multi-unit (2+ units), non-SFH, non-condo |
| Are single-family homes covered? | No rent cap; just-cause eviction applies after 12 months of tenancy |
| How many just-cause grounds exist? | 16 legally recognized grounds under the SF Rent Ordinance |
| What is the minimum OMI relocation payment? | ~$7,614 per tenant (2025) plus rent differential component |
| How long must an OMI occupant stay? | 36 consecutive months as their principal place of residence |
| What is Ellis Act notice? | 120 days for most tenants; one year for elderly/disabled with 1+ yr tenancy |
| What is vacancy decontrol? | Landlord resets rent to market rate when a tenant voluntarily leaves |
| Can landlords raise rent more than the annual cap? | Only with a successful Rent Board petition for capital improvements or costs |
| Where do I call for SF Rent Board help? | (415) 252-4602 | sfrb.org | Free for landlords and tenants |
Frequently Asked Questions About SF Rent Control
What is the allowable rent increase in San Francisco for 2026?
The allowable annual increase for the period March 1, 2025 through February 28, 2026 is 1.4%, based on 60% of the Bay Area CPI change for the prior year. The Rent Board sets the 2026-2027 rate each spring. Landlords of covered units cannot raise rent beyond this percentage without filing a formal petition for an additional increase.
Is my San Francisco rental unit covered by rent control?
If your building's Certificate of Occupancy was issued before June 13, 1979, it is a multi-unit building, and the unit is not a single-family home or condo, it is likely covered. Single-family homes and condos are exempt from rent increase limits under Costa-Hawkins, though just-cause eviction protections still apply to most SF tenants regardless of building age. Call the SF Rent Board at (415) 252-4602 to confirm your unit's status.
Can a San Francisco landlord evict a tenant without cause?
No. San Francisco's just-cause eviction ordinance requires landlords to have one of 16 legally recognized reasons to evict a tenant. A landlord cannot terminate a tenancy simply because the lease expired or they want a higher-paying tenant. For tenants in units exempt from the local ordinance, California's AB 1482 provides similar just-cause protections for units more than 15 years old.
What is the Costa-Hawkins Rental Housing Act and how does it affect SF?
Costa-Hawkins (1995) is a California state law that limits what local rent control ordinances can control. It exempts single-family homes, condos, and units built after February 1, 1995 from local rent increase caps. It also allows vacancy decontrol, meaning landlords can reset rent to market rate when a tenant voluntarily vacates. California voters rejected repeal in both 2018 (Prop 10) and 2024 (Prop 33), so Costa-Hawkins remains law.
What relocation assistance does a San Francisco landlord owe for an owner move-in eviction?
For OMI evictions, SF landlords must pay a fixed base amount (approximately $7,614 per tenant in 2025) plus a rent differential component equal to 24 times the difference between the tenant's current rent and the HUD Fair Market Rent for a comparable unit. Elderly, disabled, and households with children receive 200% of the base amount. Payment is due within 24 hours of serving the eviction notice.
How does the Ellis Act work for San Francisco landlords?
The Ellis Act allows a landlord to exit the rental business entirely by withdrawing all units from the rental market at the same time. In SF this requires 120 days notice for most tenants, or one year for elderly or disabled tenants with one or more years in residence. Significant relocation assistance is required. Tenants have a right of first refusal to return if the units are ever re-rented within ten years.
What is the Tenant Anti-Harassment Ordinance in San Francisco?
Chapter 37A of the SF Administrative Code prohibits landlords from engaging in conduct designed to force tenants out of their units. Prohibited acts include interrupting utilities or services, threatening tenants, entering without proper notice, filing false eviction petitions, and refusing to accept rent. Tenants who prove harassment in court can recover actual damages, emotional distress damages, punitive damages, and attorney's fees.
Can I buy a rent-controlled building in SF and raise rents to market rate?
Not while the existing tenants remain in place. When you buy a rent-controlled building in SF, you inherit the current tenants and their controlled rents. You can only raise rent by the annual allowable amount. When a tenant voluntarily vacates, Costa-Hawkins allows you to reset that unit to market rate for the next tenant. This "vacancy decontrol" is the primary reason tenant turnover is so financially significant to SF landlords.
Ready to Make a Move in the Bay Area?
Whether you own a rent-controlled building, rent one, or are thinking about buying one, the rules in this guide affect your situation directly. I have been helping clients navigate California's most complex real estate markets for 13 years. Let's talk.
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