San Jose, California: Apartment Rent Ordinance (ARO)
San Jose caps rent increases at 5% once every 12 months for apartments in buildings of three or more units first occupied on or before September 7, 1979.
Cited to San Jose Mun. Code § 17.23.167 (rent stabilized unit; coverage and exclusions) and 11 more sources · Verified August 16, 2026
The cap is fixed in the city's Apartment Rent Ordinance rather than tied to inflation, so it does not change year to year. Newer buildings are outside the city ordinance, though most fall under California's statewide limit of 5% plus inflation (10% maximum) once their certificate of occupancy is more than 15 years old. The city's Tenant Protection Ordinance allows evictions from any building of three or more units only on thirteen listed grounds, with relocation payments for no-fault evictions, and landlords must register covered apartments with the Housing Department every year.
Current published figures
| Figure | Value | Applies to | Source |
|---|---|---|---|
| Annual allowable rent increase (rent-stabilized apartments) | 5% | In force for increases noticed in 2026 (fixed 5% cap in the ordinance) | Official source |
These figures change on a published cycle; each row states the window it applies to and links the source that published it. Confirm the current figure at the source before acting on it.
What is in force
In force today. San Jose has limited rent increases since July 1979 under what is now the Apartment Rent Ordinance, San Jose Municipal Code Chapter 17.23, Parts 1 through 9. The ordinance was rewritten in 2017 (Ordinance 30032), when the city also created an annual rent registry, and the companion Tenant Protection Ordinance (Part 12) took effect June 16, 2017. The Housing Department's Rent Stabilization Program administers all three ordinances.
The rent increase limit
Rent on a covered apartment may rise by no more than 5% of the rent charged over the previous 12 months, and only one increase of any kind is allowed in a 12-month period. The 5% figure is written into the ordinance itself, so it does not change from year to year and no annual rate is published. A landlord who has not registered the unit with the city may not raise the rent at all. Larger increases require a petition to the Housing Department: a fair-return adjustment, or a separate capital-improvement charge capped at 3% of the monthly rent for approved improvements. Utility costs may not be passed through to tenants.
What housing is covered
Apartments in buildings of three or more units, and rooms in guesthouses rented for 30 days or longer, that received a certificate of occupancy or were first offered for rent on or before September 7, 1979. Buildings with only one or two units — including single-family homes and duplexes — are outside the ordinance, as are condominiums, units first rented after that 1979 date, government-owned or deed-restricted affordable units, hotel and motel rooms rented to transient guests, and rooms in hospitals, care facilities, dormitories, and similar housing. Mobilehome spaces are covered by a separate city ordinance. Apartments rented with a housing voucher are covered, though their rent adjustments follow the housing agency's rules.
What happens on vacancy
When a tenant leaves voluntarily or is evicted for nonpayment, a lease violation, or nuisance, the landlord may set the rent for the next tenant at any amount, and the 5% limit then applies to that new tenancy. The rent may not be reset when a tenancy was ended without cause, when an existing household member signs a new agreement, or when the landlord's unlawful conduct pushed the tenant out.
Eviction and termination rules
Under the city's Tenant Protection Ordinance, a landlord may end a tenancy in any building of three or more units — regardless of the building's age — only on one of thirteen listed grounds, such as nonpayment, an uncured lease violation, nuisance, substantial rehabilitation, an owner or close family member moving in for at least 36 months, a government order to vacate, or removal of the building from the rental market. Protections begin on the first day of tenancy. Evictions for rehabilitation, owner move-in, an order to vacate, an unpermitted unit, or Ellis Act withdrawal require relocation payments set by City Council resolution and adjusted every year, and a copy of every termination notice must be delivered to the city within 3 days. Ellis Act withdrawals of rent-stabilized buildings carry a minimum 120-day notice, longer for seniors, disabled or seriously ill tenants, and households with school-age children.
Registration and filings
Landlords must register each covered apartment in the city's Rent Registry every year, using the city's form, and update the entry when tenancy or rent changes; unregistered apartments are not eligible for a rent increase, and late registration carries a fee. Buildings with covered units also pay an annual per-unit program fee set by the City Council and billed together with the residential occupancy permit fee.
Other requirements
A security deposit may not be raised during a tenancy. Late fees may not exceed 5% of the monthly rent and apply only when rent is 3 or more days late; key-replacement fees are limited to actual cost plus $10. Utility charges and ratio utility billing may not be passed through, and any allowed charge must appear as a separate line item with a copy of the bill. Tenant buyout offers must use the city's disclosure form, and a tenant may cancel a signed buyout agreement within 45 days.
Notes and caveats
- How the city cap and the state cap fit together — apartments under the city ordinance are exempt from California's statewide rent cap because the fixed 5% limit is stricter. Buildings first occupied after September 7, 1979 fall under the statewide cap of 5% plus inflation (at most 10%) once their certificate of occupancy is more than 15 years old. Buildings newer than 15 years, and most individually owned single-family homes and condominiums, sit outside both caps.
- State law fixes the coverage line — the Costa-Hawkins Rental Housing Act guarantees landlords a market-rate reset after a voluntary move-out or for-cause eviction, keeps most separately owned single-family homes and condominiums outside local rent caps, and bars the city from extending the ordinance to buildings its rules exempted as new construction.
- Just-cause rules reach beyond rent-stabilized buildings — the Tenant Protection Ordinance applies to every building of three or more units regardless of age, plus guesthouse rooms and unpermitted units, so a post-1979 apartment can be free of the city rent cap yet still subject to the city's eviction grounds. Because the ordinance predates September 1, 2019, it applies in place of the statewide just-cause law for the units it covers.
- Ellis Act withdrawals and re-control — an owner who removes a rent-stabilized building from the rental market must give at least 120 days' notice, deposit relocation payments in escrow, record a 10-year memorandum with Santa Clara County, and honor former tenants' right to return. Units brought back within 5 years keep their prior rent, and when a withdrawn building is replaced by new rentals within 5 years, the greater of the number of units removed or half the new units becomes rent-stabilized.
- Mobilehomes are a separate regime — San Jose's Mobilehome Rent Ordinance (Chapter 17.22) regulates mobilehome space rents under its own rules and is not covered here.
Cite this page: "Landlord Atlas, San Jose, California: Apartment Rent Ordinance (ARO) (verified August 16, 2026), landlordatlas.com/laws/california/san-jose/" — free to cite and quote with a link (how these records are verified).
Citations
- San Jose Mun. Code § 17.23.167 (rent stabilized unit; coverage and exclusions) (verified 2026) Official source
- San Jose Mun. Code § 17.23.300 (initial rent and vacancy decontrol) (verified 2026) Official source
- San Jose Mun. Code § 17.23.310 (limits on rent increases) (verified 2026) Official source
- San Jose Mun. Code §§ 17.23.315–17.23.320 (fees, pass-throughs, and exceptions) (verified 2026) Official source
- San Jose Mun. Code § 17.23.900 (rent registry) (verified 2026) Official source
- San Jose Mun. Code §§ 17.23.1100–17.23.1190 (Ellis Act Ordinance) § 17.23.1150 (relocation assistance) (verified 2026) Official source
- San Jose Mun. Code §§ 17.23.1200–17.23.1290 (Tenant Protection Ordinance) §§ 17.23.1230, 17.23.1250 (verified 2026) Official source
- Cal. Civ. Code § 1947.12 (statewide rent cap and its local-ordinance exemption) (a), (d)(3)–(d)(5) (verified 2026) Official source
- Cal. Civ. Code § 1946.2 (statewide just cause; deference to local ordinances) (i) (verified 2026) Official source
- Cal. Civ. Code §§ 1954.50–1954.535 (Costa-Hawkins Rental Housing Act) §§ 1954.52(a), 1954.53(a) (verified 2026) Official source
- San Jose Housing Department — Learn About Rent Stabilization (verified 2026) Official source
- San Jose Housing Department — Apartment Rent Ordinance fact sheet (verified 2026) Official source
This page records local law. Statewide rules — deposits, notice periods, late fees, entry, evictions — live on the California hub, and the state-level position on local rent regulation appears there with its own citations and verification date.