Pasadena Sets 2.5% Rent Increase Limit for Stabilized Units

An Apartment building in Pasadena (Photo – Staff)

Pasadena landlords may raise rents on covered rent-stabilized units by up to 2.5% beginning October 1, 2026, under a new rate adopted by the Pasadena Rental Housing Board.

By News Desk

The increase will remain in effect through September 30, 2027. The board adopted the Annual General Adjustment, or AGA, at its June 18, 2026, meeting.

The AGA is the maximum annual rent increase allowed for an existing tenancy in a covered unit without a landlord filing a petition for a larger adjustment. Landlords may apply the increase only once during a 12-month period.

For example, a tenant paying $2,000 per month could see a maximum AGA increase of $50, bringing the monthly rent to $2,050, provided all legal requirements are met.

Before raising the rent, landlords must follow Pasadena’s rent-stabilization rules, including providing written notice. The 2.5% adjustment does not authorize an increase above the maximum lawful rent or eliminate any notice requirements.

The rate is calculated under Article XVIII of the Pasadena City Charter. The Pasadena Rental Housing Board uses 75% of the annual increase in the Los Angeles-area Consumer Price Index during the 12-month period ending in March. For the 2026–27 period, the CPI increased by 3.4%. Seventy-five percent of that figure is 2.55%, which was rounded to 2.5% as required by the charter.

Landlords seeking an increase greater than 2.5% may be eligible to file a Petition for Upward Adjustment of Rent under Charter § 1814.

Tenants and landlords with questions about whether a unit is covered, how the adjustment applies, or what steps are required before an increase takes effect can contact Pasadena’s Rent Stabilization Department at (626) 744-7999.