Pasadena Rental Housing Board Approves 2.5% Annual General Adjustment for 2026–2027

PASADENA, Calif. - Beginning October 1, 2026, Pasadena's Annual General Adjustment (AGA) for rent-stabilized units will be 2.5%. The Pasadena Rental Housing Board (PRHB) adopted the new rate at its June 18, 2026, meeting, setting the limit for lawful rent increases from October 1, 2026, through September 30, 2027.

The AGA is the annual percentage by which rent may be increased for an existing tenancy in a covered rental unit under Pasadena's Charter Article XVIII. Before increasing rent, landlords must follow all applicable requirements under the Charter. For a full overview of rent increase notices and requirements, visit the Rent Stabilization Department's "Rent Levels and Rent Increases" webpage.

Under Charter §1808 of Article XVIII, the PRHB calculates the AGA as 75% of the annual increase in the Consumer Price Index (CPI) for the Los Angeles area during the 12-month period ending in March. For the 2026-2027 period, that CPI came in at 3.4%, and 3.4% × 75% works out to 2.55%. This figure is then rounded to the nearest one-quarter of a percent per Section 1808(a)(1), landing at 2.5%.

For example, here's what a 2.5% AGA increase may look like on a monthly rent of $2,000: $2,000 × 2.5% = $50, so a $50 increase would bring the monthly rent to $2,050, provided all applicable requirements are met.

Landlords may apply this increase only once per 12-month period. The Charter does not authorize an increase above the maximum lawful rent or eliminate the requirement for written notice. Landlords seeking a rent increase beyond the AGA may be eligible to file a Petition for Upward Adjustment of Rent under Charter §1814.

For tenants, the AGA provides a clear benchmark for reviewing rent increase notices. For landlords, it establishes the maximum increase that may be applied without filing a petition for an upward adjustment. Because coverage and rent-increase requirements can vary by property and tenancy, the Rent Stabilization Department encourages tenants and landlords to contact its Housing Counselors with questions. Our team can help determine whether a unit is covered, explain how the AGA applies, and clarify the steps required before a rent increase takes effect.

For more information, visit CityOfPasadena.net/Rent-Stabilization or contact the Rent Stabilization Department at (626) 744-7999 with any questions.