Salinas, CA Rental Property Rules: Rent Control (2026)

The cap works as a formula with a ceiling. Over any 12-month period, an owner cannot raise the gross rental rate for a dwelling or unit by more than 5 percent plus the percentage change in the cost of living. In a year when the cost of living jumps, the second limit takes over: the increase can never exceed 10 percent, because whichever of the two figures is lower always controls. The baseline matters as much as the percentage. The increase is measured against the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months before the increase takes effect.

The statute closes an obvious workaround here: rent discounts, incentives, concessions, or credits offered by the owner and accepted by the tenant are excluded when determining that lowest rate. A move-in special or a temporary concession therefore does not become the baseline for computing the next increase; the cap runs from the rent without those discounts, which cuts both ways, since a Salinas tenant who paid a discounted rate for part of the year cannot treat the promotional price as the protected floor. The cap is not universal.

12 makes the limit subject to subdivision (b) of the statute, which exempts certain properties, and new construction is usually exempt. Landlords must provide proper notice before increasing rent.