2026 Annual General Adjustment (AGA): 1.0%
The Rent Board’s LIRA Committee has reviewed inflation data and voted to recommend a 1.0 % Annual General Adjustment (AGA) for 2026, based on 65 % of the 1.5 % CPI-U increase for the San Francisco–Oakland–San Jose region during the 12 months ending June 30, 2025.
The full Rent Board will consider that recommendation at its October 16, 2025, meeting. Once adopted, the official AGA Order (Regulation 1148) will be published by October 31, 2025.
🏛️ About the Rent Board’s Process
Each October, the LIRA Committee reviews staff’s CPI calculations and recommends the next year’s AGA to the full Rent Board. The Board then adopts the final percentage by resolution and publishes the AGA Order.
After publication, the new AGA takes effect on January 1 of the following year—subject to proper written notice.
Process Summary
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LIRA Committee (October 9, 2025) – Reviews CPI data and recommends the 2026 AGA (1.0%) to the Board.
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Full Rent Board (October 16, 2025) – Votes to adopt the official AGA resolution.
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Publication (~October 31, 2025) – Rent Board issues the final AGA Order (Regulation 1148).
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Effective Date (January 1, 2026) – New rent ceilings take effect for all eligible tenancies.
🗓️ Effective Date
The 2026 AGA applies to all fully covered rental units with a lawful rent ceiling established before January 1, 2025.
Units where an initial rent was set between January 1 and December 31, 2025, will not become eligible until January 1, 2027.
Rent increases under the 2026 AGA may take effect no earlier than January 1, 2026, and require at least 30 days’ written notice to tenants.
🏘️ Which Properties Does the AGA Apply To?
The 1.0 % AGA applies to all rental units registered as fully covered under Berkeley’s Rent Stabilization Ordinance (RSO). These are typically multi-unit properties built before June 1980 that do not qualify for an exemption.
If you’re unsure how your property is classified in the Rent Board’s registry, contact BPOA for guidance before applying any rent increase. Confirming your coverage status ensures you follow the correct rules and avoid compliance issues.
🧾 Before Applying the AGA
Housing providers must confirm:
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The unit is properly registered, and all fees are current.
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There are no outstanding Rent Board orders or habitability violations.
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Written notice of the increase is served at least 30 days before its effective date.
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Increases are calculated accurately—AGAs are not rounded to the nearest dollar.
🧮 How to Apply the AGA (and Use Banked Increases)
The Annual General Adjustment raises your Lawful Rent Ceiling, not necessarily the rent you’re currently charging.
The Lawful Rent Ceiling is the maximum rent permitted under the Ordinance, and it’s automatically updated in the Rent Board’s registry each January 1 based on that year’s AGA.
If you did not raise the rent in a prior year, that increase is banked and may be used later, but AGAs cannot be compounded. Each year’s AGA must be applied separately to the rent ceiling that existed before that adjustment took effect.
Example
Suppose your tenant moved in on July 1, 2023, and the initial rent established at that time was $2,000 per month. Because the tenancy began in 2023, it became eligible for its first Annual General Adjustment (AGA) on January 1, 2025.
If you did not take that 2025 AGA, but now wish to bring the rent up to its 2026 lawful ceiling, you can apply both adjustments—each calculated separately, not compounded:
- 2025 AGA (2.1%) → $2,000 + 2.1% = $2,042.00
- 2026 AGA (1.0%) → $2,042 + 1% = $2,062.42
You may lawfully raise the rent to $2,062.42, provided you give proper written notice and the tenancy qualifies for both AGAs.
Key takeaway: The AGA increases the Lawful Rent Ceiling, not the rent you’re charging. You are limited by the current Lawful Rent Ceiling, not by the most recent AGA percentage.
📑 Where to Find the Official Notice Form
Once the AGA Order is published, members can download the Notice of Annual General Adjustment form from the Rental Housing Forms Library under Lease Modifications.
📈 Historical Context
The 1.0% AGA represents a modest increase compared with 2025’s 2.1%, reflecting slower regional inflation for the most recent CPI-U measurement period.