Ever Wondered How the Rent Board Arrives at the Annual General Adjustment?
The Bay Area CPI rose 1.5% between June 2024 and June 2025. Every year, the Berkeley Rent Board announces the Annual General Adjustment (AGA); the maximum allowable rent increase for fully covered units. The announcement typically occurs in October, but the calculation is based on publicly available data. That means we can see where the 2026 AGA is headed right now.
How the Formula Works
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The Rent Board looks at the Bay Area Consumer Price Index (CPI) published by the U.S. Bureau of Labor Statistics.
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Specifically, they use the change in CPI from June of the prior year to June of the current year.
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That percentage change is then multiplied by 65%.
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Finally, the result is rounded to the nearest tenth of a percent.
Crunching the Numbers for 2026
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The Bay Area CPI rose 1.5% between June 2024 and June 2025.
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65% × 1.5% = 0.975%.
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The Rent Board rounds the result to the nearest tenth of a percent. That means the 2026 AGA will be announced as 1.0%.
- For example, a 1% AGA on $2400 rent = a new rent of $2424.00
Why This Matters
While the Rent Board won’t formally announce the number until October, the result is already set: the 2026 AGA will be 1.0%.
Because the increase is so small, some housing providers may decide it’s not worth the administrative effort of preparing and serving legal notices for less than a one-percent change. Others may still choose to implement it to keep pace with inflation, even marginally. Knowing the number in advance allows you to make that decision now, rather than waiting until fall.
Member Resources:
Visit the Rental Housing Forms Library, Lease Modification Notices & Addenda section, and select the 30/90-Day Notice of AGA Increase.