For covered units in San Francisco, the allowable rent increase effective March 1, 2026, through February 28, 2027, is 1.6%.

San Francisco landlords are in for a real treat this spring. For covered units, landlords may be entitled to raise the rents a whopping 1.6%. This figure is based on 60% of the Bay Area’s Consumer Price Index (CPI). To put this paltry number in perspective, landlords are required to pay a 4.2% interest rate on security deposits. We know of many housing providers in San Francisco who will be thrilled to raise their rents to the tune of 4.2%.

Inflation is a barnburner topic nowadays, with talk about a new Fed Chair right-sizing interest rates, predictions about where prices are headed, and whether consumers are paying more or less at the dinner table.

What is indisputable is that the costs of providing rental housing have increased dramatically.

We’ve maintained that landlording expenses should not be compared to the price of a dozen eggs at the grocery store; the CPI does not adequately reflect the rising costs of operating a rental business. Whether it is a precipitous spike in insurance rates (if the property can be insured at all), calling up a plumber to fix a sink, replacing an appliance, or getting a Recology bill in the mail, San Francisco landlords are pressured by ever-shrinking margins.

However, generally speaking, Bornstein Law is a proponent of these incremental allowable rent increases. Housing providers are reminded that the increase applies to the base rent, not including previous passthroughs, and requires a 30-day written notice. If there is a quandary, certainly contact our office to ensure all of the I’s are dotted and the T’s are crossed.

For those landlords in the enviable position of owning a property that is not subject to rent caps under local or state law, we want you to recognize that the tenant must be notified in writing of this exemption or risk going from hero to goat if this critical step is overlooked.

As a sidebar, the deadline to submit a Request for Exemption from the 2026 Rent Board fee has come and gone. 

Units without a valid and approved exemption will be billed for the 2026 Rent Board fee, and it is due by March 1st. Note that requesting a Rent Board Fee exemption does not satisfy the requirement to report information about theirunits on the city’s Housing Inventory and Fee Portal. Owners need to stay on top of registering and updating their units, and while most of us get with the program, there are surprisingly large number of owners unaware of their obligation to be transparent with the city. Homeowners who just inherited a property, for example.