AB 1482, California's Tenant Protection Act (Civil Code 1947.12 and 1946.2), caps rent increases at 5% plus the regional CPI, never more than 10% in 12 months, and after a tenant's first 12 months it only lets you end the tenancy for a listed just cause. For Sacramento the CPI is California's, so increases taking effect from August 1, 2026 can reach 8.6%. A house whose owner isn't a REIT, a corporation or an LLC with a corporate member is exempt, but only if the tenant got the exact exemption statement in writing.
You own a rental house in or near Sacramento, you're thinking about selling it, and you need to know what AB 1482 lets you do about the rent and the tenant before and during the sale.
AB 1482 at a glance for Sacramento landlords
| Statutes | Civil Code 1947.12 (rent cap) and 1946.2 (just cause) |
|---|---|
| In force | January 1, 2020; the rent cap covers increases from March 15, 2019 |
| Rent cap | 5% + regional CPI, max 10%, per 12 months, at most two increases |
| Sacramento cap from Aug 1, 2026 | 8.6% (5% + California CPI change of 3.6%) |
| Just cause starts | After 12 months (24 if a new adult joins the lease early) |
| No-fault relocation | One month's rent, paid within 15 days, or the final month waived |
| Sunset | Repealed January 1, 2030 unless extended |
What is AB 1482, the California Tenant Protection Act?
AB 1482 is the Tenant Protection Act of 2019. It added a rent cap (Civil Code 1947.12) and a just cause rule (Civil Code 1946.2). Signed on October 8, 2019, it took effect on January 1, 2020, with the cap reaching back to increases from March 15, 2019. SB 567 rewrote parts of both sections from April 1, 2024, and both repeal on January 1, 2030.
The Attorney General describes the Act as covering every residential rental in the state except the ones it names, so assume your house is covered until you can point to an exemption. For the rest of the rules a landlord answers to, see the California landlord-tenant law overview. This page is general information, not legal advice: have a California landlord-tenant attorney read your lease before you serve a notice or raise the rent ahead of a sale.
AB 1482 rent cap: working out the allowed increase
The AB 1482 rent cap formula
Over any 12 months, the rent can rise by no more than 5% plus the change in the cost of living, or 10%, whichever is lower. The base is the lowest gross rent charged in the 12 months before the increase, ignoring any concession the tenant accepted. A tenant who stays can get at most two increases in that window. When the house turns over with no prior tenant left, you set the new rent freely.
Which CPI the cap uses for Sacramento
The statute names four federal metro indexes: Los Angeles, Riverside, San Diego and San Francisco. Sacramento isn't one, so the law uses the California CPI for all urban consumers published by the Department of Industrial Relations (DIR). Increases taking effect on or after August 1 compare April of that year with the April before; earlier increases use the previous two Aprils. Round to a tenth of a percent.
| DIR California CPI, April | Index | Change | Cap | For increases |
|---|---|---|---|---|
| 2024 | 342.734 | |||
| 2025 | 352.063 | 2.7% | 7.7% | Aug 1, 2025 to Jul 31, 2026 |
| 2026 | 364.746 | 3.6% | 8.6% | Aug 1, 2026 to Jul 31, 2027 |
The index values are DIR's; the caps are the statute's arithmetic. The City of Sacramento's 2026 notice reports the same 3.6% April change.
AB 1482 increase on a typical Sacramento rent
Zillow's typical Sacramento asking rent was $2,045 a month in September 2026. From August 1, 2026, 8.6% allows up to $175.87 more, for $2,220.87. Two increases inside 12 months still share that one limit.
Rent increase notice under Civil Code 827
On a month-to-month tenancy, an increase of 10% or less over 12 months needs 30 days' written notice; above 10% needs 90, plus extra days if mailed. The dated caps and how to work out an increase are on the California rent increase limits page.
AB 1482 just cause after the first 12 months
After a tenant has lawfully lived in the house for 12 months, you need a just cause, stated in the written notice, to end the tenancy. If an adult joined the lease before anyone reached 24 months, protection starts once everyone has 12 months or one tenant has 24.
AB 1482 at-fault just cause
| 1946.2(b)(1) | What the tenant did |
|---|---|
| (A) | Didn't pay rent |
| (B) | Broke a material lease term after written notice to correct it |
| (C), (D) | Nuisance or waste |
| (E) | Refused, in writing, a renewal of similar length and terms |
| (F) | Criminal activity on the property or threats at the owner |
| (G) | Sublet or assigned against the lease |
| (H) | Refused lawful entry under Civil Code 1954 |
| (I) | Used the home for an unlawful purpose |
| (J) | Stayed after an employment or agency role ended |
| (K) | Didn't leave after giving notice |
A curable breach needs a notice to cure first; a three-day notice to quit can follow only if it isn't fixed.
AB 1482 owner move-in
You or your spouse, partner, child, grandchild, parent or grandparent will live there for at least 12 months. For leases signed since July 1, 2020, it works only if the tenant agrees in writing or the lease allows it.
AB 1482 withdrawal from the rental market
The reason closest to selling a vacant house. The statute doesn't define it, so get an attorney's view before relying on it to clear a house for sale.
AB 1482 government or court order
Complying with a habitability order, an order to vacate, or a local ordinance requiring the home be vacated.
AB 1482 demolition or substantial remodel
Permitted work on structural, electrical, plumbing or mechanical systems, or hazardous-material abatement, that needs the tenant out for at least 30 days. Paint and minor repairs don't qualify.
AB 1482 relocation assistance
Every no-fault notice must offer one month of the current rent, paid within 15 calendar days of service, or a written waiver of the final month's rent, and must tell the tenant about the right. Get it wrong and the notice is void.
AB 1482 exemptions a Sacramento owner can check
AB 1482 single-family exemption
A house or condo that can be sold separately is exempt from both rules if the owner isn't a REIT, a corporation, or an LLC with a corporate member, and the tenants received the exemption statement in writing. A family trust or an LLC whose members are all people isn't excluded by that wording.
AB 1482 exemption notice wording
The statement, from Civil Code 1946.2(e)(8) and 1947.12(d)(5), must read:
"This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation."
For tenancies begun or renewed on or after July 1, 2020, it must be in the rental agreement. If yours doesn't carry it word for word, plan as if the house is covered.
AB 1482 exemption for homes under 15 years old
Housing with a certificate of occupancy issued in the last 15 years is exempt. The date rolls, so a newer house ages into coverage.
AB 1482 exemption for an owner-occupied duplex
Two units in one structure where the owner has lived in one since the tenancy began, and neither is an ADU.
AB 1482 exemptions when the owner lives there
Just cause doesn't apply where the owner lives in the home and rents out no more than two units or bedrooms, or shares a kitchen or bathroom with the tenant.
Other AB 1482 exemptions
Deed-restricted affordable housing and dorms are outside both rules; hotels and care facilities are outside just cause; housing under a stricter local rent ordinance is outside the state cap.
SB 567: what changed in AB 1482 on April 1, 2024
- Owner move-in: the person named must move in within 90 days of the tenant leaving and stay 12 consecutive months. The notice names them and their relationship to you and says the tenant may ask for proof. If it falls through, you offer the home back at the old rent and repay moving costs.
- Who is an owner: a person with at least 25% recorded ownership, any share among close relatives, a family trust settlor or beneficiary, or a 25% owner through an LLC or partnership.
- Remodel: the notice describes the work and its length, attaches the permits and includes a statutory right to re-rent.
The current text lets a tenant recover damages, fees and up to three times damages for willful violations, and the Attorney General or city attorney can seek an injunction.
How AB 1482 applies when you sell a Sacramento rental
Selling isn't an AB 1482 just cause
A sale appears in neither list. With a covered tenant past 12 months, you can sell with the tenant in place, wait for a cause that fits, or agree a move-out. See selling a house with tenants in place and paying a tenant to leave.
The AB 1482 rent cap follows the house
"Owner" includes a predecessor in interest, and the cap runs from the lowest rent in the past 12 months. Your buyer can't reset the rent at closing, and your last increase counts toward theirs.
The buyer can change AB 1482 status
If an investor buyer is a corporation or an LLC with a corporate member, the single-family exemption is gone even with the statement in your lease. An owner-occupant buyer still needs a just cause, and owner move-in needs that lease clause. Timing a notice during escrow is covered in the notice to vacate guide for sellers.
Sacramento's Tenant Protection Program and AB 1482
The City's Tenant Protection Program (City Code chapter 5.156) came first, and Civil Code 1946.2(i) hands just cause to a local ordinance adopted on or before September 1, 2019, so a unit the City covers follows the City's rules; its procedures say each unit is under one law or the other. The City program covers apartments and duplexes built on or before February 1, 1995 and exempts single-family dwellings and condos, so a rental house in city limits is usually an AB 1482 property. Covered units have an 8.6% cap from July 1, 2026, one increase a year, registration and 120-day notices. The Sacramento rental rules guide has the detail.
AB 1482 checklist before you list
- Certificate of occupancy date: under 15 years, the house is outside AB 1482 for now.
- Title: a corporation, REIT or LLC with a corporate member can't use the single-family exemption.
- Lease: is the exemption statement there word for word, and when did the tenancy start or renew?
- Months in residence: under 12, just cause hasn't started.
- Last increase: your buyer inherits the window and the base.
- Vacant or occupied: decide before pricing, because it changes who buys.
Justin can price the house both ways so you can see what the tenancy costs you at sale. Start with a rental valuation or read about selling a Sacramento rental.
AB 1482 questions from Sacramento landlords
What exempts a property from AB 1482?
The main exemptions are housing with a certificate of occupancy from the last 15 years; a house or condo that can be sold separately, isn't owned by a REIT, corporation or LLC with a corporate member, and whose tenant got the exact statutory exemption statement in writing; an owner-occupied duplex; deed-restricted affordable housing; and dorms. A few, such as an owner sharing a kitchen with the tenant, cover only just cause.
When did AB 1482 go into effect?
AB 1482 was signed on October 8, 2019 and took effect on January 1, 2020. Its rent cap reached back to increases made on or after March 15, 2019, so a larger increase made between then and January 1, 2020 was rolled back to the allowed amount. SB 567 changed parts of it from April 1, 2024, and it repeals on January 1, 2030.
What's the maximum rent increase for 2026 in Sacramento?
Under AB 1482, an increase taking effect between August 1, 2026 and July 31, 2027 can be up to 8.6%: 5% plus the 3.6% change in the California CPI from April 2025 to April 2026. Increases before August 1, 2026 were capped at 7.7%. Units under the City's Tenant Protection Program have had an 8.6% cap since July 1, 2026.
Can I raise the rent $300 in California?
Only if $300 fits under the cap. On a $2,045 rent, Sacramento's typical asking rent, $300 is about 14.7%, well above the 8.6% AB 1482 allows from August 1, 2026, so a covered unit can't take it. An exempt house can, but any increase over 10% in 12 months needs 90 days' written notice under Civil Code 827.
Does AB 1482 apply to single-family homes?
Yes, unless the house qualifies for the exemption. A single-family home that can be sold on its own is exempt only when the owner isn't a REIT, corporation or LLC with a corporate member and the tenants received the statutory exemption statement in writing, inside the lease for tenancies begun or renewed since July 1, 2020. Without the statement, the house is covered.
Can I sell my rental if the tenant is protected by AB 1482?
Yes. AB 1482 doesn't stop a sale; it stops you ending the tenancy without just cause, and a sale isn't one. You can sell with the tenant in place, usually to an investor who takes over the lease and the rent cap, or agree a move-out with the tenant. The buyer inherits the same rules.
Sources
- California Civil Code 1946.2 (just cause, exemptions, relocation)
- California Civil Code 1947.12 (rent cap, CPI definition, exemptions)
- California Civil Code 827 (rent increase notice)
- AB 1482 (2019), chaptered bill text
- California Attorney General: landlord-tenant issues and the Tenant Protection Act
- California Department of Industrial Relations: California Consumer Price Index
- U.S. Bureau of Labor Statistics: West region CPI areas
- City of Sacramento: Tenant Protection Program
- City of Sacramento: 2026 TPP annual rent adjustment notice
- City of Sacramento: TPP administrative procedures
- Sacramento City Code chapter 5.156 (Tenant Protection)
- Zillow Research: Observed Rent Index (September 2026)
Reviewed by Justin Vierra
Justin reviewed this page for accuracy on October 28, 2026. Figures come from the sources listed above. Our research process.
Justin Vierra is a Sacramento Realtor® with GUIDE Real Estate and Principal of the Vierra Group who sells rental homes for their owners, with tenants in place or vacant. He spent six years in Midtown property management before he began selling homes in 2010.
- Since 2010Licensed in California, DRE #01880488
- 6 yearsManaging Midtown rental property before he sold homes
- 447Vierra Group team sales on Zillow, 26 in the past 12 months
- 440+Career sales, as reported by Justin
- Six years in property management: Midtown Sacramento: older buildings, multifamily property, maintenance and tenants
- Principal, Vierra Group: His team at GUIDE Real Estate, 3001 I Street, Sacramento
- Sacramento Real Producers: Top 250 agent for 2025, as reported by Justin
Realtor®, DRE #01880488. Vierra Group, GUIDE Real Estate, 3001 I St, Suite 200, Sacramento, CA 95816. General information, not legal, tax or financial advice.
More about Justin →