San Francisco Rent Increase 2026: What the 1.6% Allowable Increase Means for Landlords and Tenants

Posted: January 2026
Prepared by ReLISTO

Each year, San Francisco sets a citywide limit on how much rent can be increased for rent-controlled apartments. For rent increases effective March 1, 2026 through February 28, 2027, the San Francisco allowable rent increase is 1.6%.

This percentage applies to San Francisco rent control units and is published annually by the San Francisco Rent Board. While the percentage itself is straightforward, how it was calculated this year — and how it should be applied — is not.

Behind the 1.6% figure is an unusual situation involving missing federal inflation data, a temporary adjustment by the Rent Board, and a calculation process that many landlords and tenants are understandably confused about. Below is a clear explanation of what happened, what the current rent increase rules are, and how to calculate a lawful rent increase correctly.

How San Francisco Rent Increases Are Normally Calculated
Under the San Francisco Rent Stabilization Ordinance, annual rent increases are tied to inflation using the Consumer Price Index (CPI) for the San Francisco region.
Normally:
The Rent Board compares October-to-October CPI data
The allowable rent increase equals 60% of inflation
The result is rounded to the nearest tenth
The increase is capped at 7%
The increase becomes effective March 1 each year

This methodology has been used consistently for decades and applies to most rent-controlled apartments in San Francisco.

Why the 2026 San Francisco Rent Increase Was Different
In 2025, a federal government shutdown prevented the U.S. Bureau of Labor Statistics from publishing the October 2025 CPI. The BLS later confirmed that this data will never be published retroactively.

Because San Francisco law specifically requires an October-to-October comparison, the Rent Board could not calculate the annual allowable rent increase using its normal method — not just for 2026, but for two consecutive years. This created a technical problem, not a policy change.

How the San Francisco Rent Board Calculated the 1.6% Increase
To address the missing CPI data, the Rent Board considered two approaches. The method ultimately used was to estimate the missing October 2025 CPI using a recognized statistical technique called a geometric mean.

In simple terms:
The Rent Board used published CPI data from August 2025 and December 2025
It calculated the midpoint between those two figures
That estimate was used in place of the missing October data

This approach allowed the Rent Board to:
Rely only on published federal CPI data
Preserve the long-standing October-to-October framework
Avoid skipping or double-counting inflation

Using this method, the San Francisco allowable rent increase for 2026 was set at 1.6%.

What Happens in 2027 (and Beyond)
Because the October 2025 CPI was never published, a similar temporary methodology will be required again for the 2027 allowable rent increase.

Once the CPI timeline fully moves past the missing data, the Rent Board can return to its standard calculation method. In other words:
2026 and 2027 are transition years
Future years will return to the normal process

What the 1.6% Rent Increase Means for Landlords and Tenants
Here’s what matters in practice:
1.6% is the maximum allowable rent increase for covered units
The increase applies to rent increases effective on or after March 1, 2026
Banked rent increases may still be applied where allowed
Rent control coverage and tenant protections have not changed
Improperly calculated increases may be partially or fully unlawful

Because banked rent and rounding rules apply, two landlords using the same percentage may still end up with different lawful rents.

Calculate Your San Francisco Rent Increase
San Francisco publishes the annual allowable rent increase percentage, but it does not provide a calculator that applies the increase to a specific unit or accounts for banked rent. That calculation is left to landlords and tenants to perform correctly.

ReLISTO’s San Francisco Rent Increase Calculator fills that gap. It allows landlords and tenants to calculate rent increases down to the penny, including the correct application of banked rent under San Francisco rent control.


Use the calculator here:
https://www.relisto.com/calculators/calculator/rent-increase

The tool is designed to eliminate guesswork, reduce disputes, and help both parties clearly understand what is — and is not — allowed per City guidelines. Best of all its free and you don’t need to enter any personal data!
If you’re planning a rent increase or reviewing one you’ve received, using a precise, rules-based calculator is one of the easiest ways to stay compliant and informed.

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San Francisco Security Deposit and Rent Increase Calculator Back Online!

Attention San Francisco Property Owners and Tenants! We have some exciting news for you! The San Francisco Security Deposit and Rent Board Fee Calculator is back online and continues to be free for all to use! Plus, we are happy to announce that the San Francisco Allowable Rent Increase Calculator has been reinstalled and is ready for general use!

The San Francisco Security Deposit and Rent Board Fee Calculator is an excellent tool for both property owners and tenants. This calculator helps determine how much security deposit interest landlords are to reimburse to their tenants while taking into account the amount landlords have paid the San Francisco Rent Board for their annual registration fees. With this calculator, tenants can also quickly figure out the accurate amount of interest their landlords are to reimburse them on their security deposit, giving them peace of mind and hassle-free discussions with their landlord.

As for the San Francisco Allowable Rent Increase Calculator, it tracks allowable increases and banked rent, making it an easy and usable tool for both landlords and tenants to refer to. This calculator is designed for both rent-controlled and non-rent-controlled San Francisco housing., helps landlords determine the maximum rent they can charge their tenants.

We understand the challenges that come with navigating the complex world of property rentals, leasing, and management. As such, we strive to provide you with the best tools to help you make informed decisions. These calculators are user-friendly and accessible to anyone, whether you are a seasoned landlord or a first-time tenant.

At ReLISTO, we are committed to making the renting experience as smooth and stress-free as possible. We hope that these calculators will be a valuable resource to both property owners and tenants in San Francisco. So head on over to our website and check out our calculators today! Both Calculators may be found using one single link https://www.relisto.com/calculators/

Thank you for choosing ReLISTO for your San Francisco Bay Area leasing and property management needs.