Inside Sacramento city limits, three City programs touch a rental. The Tenant Protection Program caps rents at 8.6% from July 1, 2026 and requires just cause, but only for apartments and duplexes built by February 1, 1995; single-family houses and condos are exempt. The Rental Housing Inspection Program applies to almost every rental ($25 a unit a year), and the business operations tax applies once you own four or more units.
You own a rental in Sacramento or the surrounding county, you're weighing a sale, and you want to know which City and County rules apply to your property and what to tidy up before you sell.
Sacramento rental programs at a glance
| Tenant Protection Program covers | Apartments and duplexes built on or before Feb 1, 1995 |
|---|---|
| TPP exempts | Single-family dwellings, condos, newer buildings |
| TPP rent cap | 8.6% from July 1, 2026, once per 12 months |
| TPP fee | $20 per unit per year |
| Rental Housing Inspection Program fee | $25 per unit per year; $180 per unit inspection |
| Business operations tax, residential rentals | Under four units exempt; $25 plus $1.75 per unit over four |
| Unincorporated county | County inspection program and fee; City TPP doesn't apply |
Which Sacramento rental rules apply to your property
Start with two questions: is the property inside the City of Sacramento, and what kind of building is it? The answers decide which programs reach you.
| Property | City TPP | City inspection program | City business tax | State AB 1482 |
|---|---|---|---|---|
| House on its own lot, city limits | Exempt | Yes | Only if you own 4+ units | Yes, unless exempt |
| Condo, city limits | Exempt | Yes | Only if you own 4+ units | Yes, unless exempt |
| Duplex or apartment built by Feb 1, 1995, city limits | Yes | Yes | Only if you own 4+ units | No (City rules instead) |
| Duplex or apartment built after Feb 1, 1995, city limits | Exempt | Yes, unless under 5 years old | Only if you own 4+ units | Yes, unless exempt |
| Any rental in unincorporated county | No | County program instead | No (long-term rentals exempt from County license) | Yes, unless exempt |
The state column is the subject of the AB 1482 guide for Sacramento. This page is general information, not legal advice; the City and County staff numbers below are the place to confirm how a rule applies to your parcel.
Tenant Protection Program: the City's rental cap and just cause
The Sacramento Tenant Protection Act is City Code chapter 5.156, run by the Tenant Protection Program (TPP). The City adopted it in 2019 (Ord. 2019-0025), before the state's AB 1482, and its procedures say each unit falls under just one of the two. That matches Civil Code 1946.2(i): where a local just cause ordinance adopted on or before September 1, 2019 applies, the local ordinance governs instead of the state's just cause rule.
Rental units the TPP covers
The City lists apartments and duplexes built before February 1995, rented mobile homes (the dwelling only) and hotel rooms rented for more than 30 days. The code exempts units built after February 1, 1995, by certificate of occupancy or final inspection date.
TPP exemptions for single-family rental houses and condos
Section 5.156.030(F) exempts "single dwelling units" and units in a condominium or stock cooperative. The code defines a single dwelling unit as one dwelling unit on one legal lot. A lot with a house plus a second unit isn't one dwelling unit, so if you own that, ask the TPP how they treat it. Also exempt: units the landlord or immediate family live in, a room where the tenant shares a kitchen or bathroom with the owner, income-restricted government housing, and institutional or transient housing.
TPP rental increase cap
The cap is 5% plus the year's change in the California CPI, never above 10%, and only one increase per 12 months for every tenant regardless of tenure. The City sets it each July 1 from the April CPI figure the Department of Industrial Relations publishes: 8.6% from July 1, 2026, after 7.7% the year before. A worked increase and the 30 or 90-day notice are in the California rent increase guide. A landlord can petition a hearing examiner for more to earn a fair return. When a unit is vacated, you set a new base rent for the next tenant.
TPP just cause for long-term rental tenants
After a tenant has lived there more than 12 months, the landlord must offer to renew and can end the tenancy only for one of seven reasons: unpaid rent, an uncured breach, criminal or nuisance activity, refusing access after three offered dates, necessary repairs needing 30 days' vacancy, owner move-in, or withdrawing every unit on the parcel from the rental market.
Tenant Protection Program owner move-in and withdrawal: 120 days
Repairs, owner move-in and withdrawal each need at least 120 days' written notice. Owner move-in requires a natural person with at least 51% ownership, and immediate family includes siblings. You file a notice of intent with the TPP within 30 days of serving the tenant. A withdrawal also needs a notarized memorandum recorded against the property that binds later owners for the 12 months.
Tenant Protection Program relocation
Chapter 5.156 has no relocation payment; the City's procedures describe relocation assistance as a state-law requirement for AB 1482 units.
TPP registration and the $20 rental unit fee
Covered landlords register each unit every year and pay a $20 per unit TPP fee. The City mails the packet and invoice; the registration form is due within 30 days of receiving it, and a change of ownership needs an amended form.
Tenant Protection Program penalties
Violations, including an over-cap increase, a second increase in 12 months, or failing to register or pay, carry administrative penalties of up to $25,000 per violation. A landlord's failure to comply is also a defense for the tenant in an eviction case. The chapter sunsets on December 31, 2029.
Rental Housing Inspection Program: what Sacramento owners must do
The Rental Housing Inspection Program (RHIP), City Code chapter 8.120, applies to almost every residential rental in city limits, houses included. The City finds rentals from County Assessor data: if the owner's mailing address differs from the property's, a packet goes out. It's still your job to register, packet or not.
Registering a rental with the RHIP
File a registration form for each rental property, online or by mail, confirming the number of units and your contact details.
Local contact for out-of-area rental owners
If you live outside the Sacramento area, name a local contact representative who lives or works within 35 miles of City Hall and can attend inspections. A property manager, friend, relative or the tenant can serve.
RHIP rental inspection and the 30-day fix window
Once registered, the property is scheduled for inspection with at least two weeks' notice to you and the tenant. You or your local contact must be there. Violations must be fixed within 30 days, or the City may issue an administrative notice and order and re-inspect the following year for $295.
RHIP self-certification for a clean rental
Pass the first inspection, or fix everything before the 30-day check, and the property moves to self-certification: you inspect each unit every calendar year and at every change of tenant, and keep the checklists for three years. The City audits about 10% of self-certified properties at random.
RHIP rental fees, effective July 1, 2025
| RHIP fee | Amount |
|---|---|
| Rental housing program fee, per unit per year | $25 |
| Unit inspection fee, per new unit inspected | $180 |
| Reinspection fee | $295 |
| Rescheduling fee | $180 |
| Code technology fee | 8% |
RHIP exemptions and a rental you've sold
Owner-occupied units, properties built in the last five years and units inspected by another agency such as SHRA can apply for exemption. If you've sold the property or stopped renting it, file the exemption form so the City's records follow the sale.
Business operations tax on Sacramento residential rental property
Instead of a general business license, the City of Sacramento collects a business operations tax (City Code chapter 3.08), and the code counts offering real property for rent as a business.
Business operations tax rate for residential rentals
Section 3.08.200(A) sets the annual tax at $25 plus $1.75 for each rental unit over four, capped at $5,000 a year, and exempts anyone with fewer than four units. The City's business-type page describes the category as anyone who owns four or more rental units, separate from the RHIP fee.
Business operations tax example for a rental owner
An owner of one rental house pays no business operations tax. An owner of six units pays $25 plus 2 × $1.75, or $28.50 a year, on the code's formula. Confirm the current amount with the Revenue Division at (916) 808-8500 before you file, since the code library warns it may lag recent changes.
County rental rules outside Sacramento city limits
Many "Sacramento" addresses sit in unincorporated county areas or in separate cities such as Elk Grove, Rancho Cordova, Citrus Heights or Folsom. Rancho Cordova runs its own registration and inspection program (see Rancho Cordova rental rules for sellers), and Elk Grove asks landlords to register rentals (see selling a rental in Elk Grove). The City's TPP, RHIP and business tax stop at the city line.
Sacramento County rental housing inspection program
The County Board of Supervisors made rental registration and inspection mandatory in unincorporated areas on December 18, 2008. Owners register with County Code Enforcement and pay a per-unit Rental Housing Code Compliance fee that appears on the County utility bill. The County's FAQ doesn't publish the current amount, so check your utility bill or call the program at (916) 876-9020. Homes under five years old or inspected by SHRA can skip inspections but still pay the fee.
County business license and long-term rentals
Sacramento County requires a general business license in unincorporated areas but exempts apartments, duplexes and other residential facilities for stays over 30 days. Short-term rentals need a permit and license.
Rent and eviction rules for county rentals
The County pages we reviewed cover inspections and fees, not rent limits. Outside city limits, AB 1482 is the rent cap and just cause law unless the home is exempt; check with any separate city you're in for its own rules.
Selling a Sacramento rental: closing out the city programs
- Bring RHIP current. Unpaid fees or an open notice and order are worth clearing before a buyer's inspection turns them up.
- Check the TPP status of each unit and the last rent increase date; a buyer of a covered duplex inherits both.
- File the change. Send the RHIP exemption form once the sale closes or the home stops being a rental, and an amended TPP registration on a change of ownership.
- Don't start a no-fault termination to sell without the 120-day timeline and filings, and an attorney's read; the notice to vacate guide for sellers lays out the options.
- Price it occupied and vacant. A tenant under the City's rules changes who buys.
If managing the rules is the reason you want out, the tired landlord page covers how Justin handles a sale, and selling a Sacramento rental is the place to start.
Sacramento rental rules: owner questions
What are the tenant protection laws in Sacramento?
Inside city limits, apartments and duplexes built on or before February 1, 1995 fall under the City's Tenant Protection Program: an 8.6% cap from July 1, 2026, one increase a year, just cause after 12 months and yearly registration. Most other rentals, including single-family houses and condos, fall under California's AB 1482 unless exempt. Every city rental also falls under the inspection program.
Who is covered by the Tenant Protection Act in California?
The Attorney General says AB 1482 covers all residential rentals except those the law names. The main exemptions are homes with a certificate of occupancy from the last 15 years, single-family homes and condos not owned by a REIT, corporation or LLC with a corporate member that gave tenants the statutory exemption notice, owner-occupied duplexes, affordable housing, and units under a local rent ordinance such as Sacramento's program.
How much can a landlord raise rent in Sacramento?
For a unit under the City's Tenant Protection Program, up to 8.6% from July 1, 2026, once in 12 months. For a unit under AB 1482, up to 8.6% for increases taking effect from August 1, 2026, in no more than two steps over 12 months. An exempt house has no cap, but an increase over 10% needs 90 days' notice.
Does Sacramento's Tenant Protection Program apply to single-family homes?
No. City Code 5.156.030 exempts single dwelling units, meaning one dwelling unit on one legal lot, and units in condominiums and stock cooperatives. A rental house on its own lot inside city limits stays off the TPP registry and outside its cap, though the City's inspection program still covers it, and AB 1482 applies to it unless it qualifies for a state exemption.
What does the Sacramento Rental Housing Inspection Program cost?
As of July 1, 2025 the City charges $25 per rental unit a year, $180 for each new unit inspected, $295 for a reinspection when repairs take longer than 30 days, $180 to reschedule, and an 8% code technology fee. Properties that pass move to self-certification, where you inspect each unit yearly and at each new tenancy.
Do I need a business license to rent out a house in Sacramento?
The City charges a business operations tax in place of a business license. For residential rentals, City Code 3.08.200 exempts anyone with fewer than four units and charges $25 plus $1.75 per unit over four, up to $5,000. In unincorporated Sacramento County, long-term rentals over 30 days are exempt from the County's general business license.
Does the City's rental program apply in unincorporated Sacramento County?
No. The City's Tenant Protection Program, inspection program and business tax apply only inside Sacramento city limits. Unincorporated areas have the County's own rental registration and inspection program, with a per-unit fee on the County utility bill, and AB 1482 for rent and eviction rules. Other cities in the county set their own rules.
Sources
- California Civil Code 1946.2 (local ordinance carve-out in subdivision (i))
- City of Sacramento: Tenant Protection Program
- City of Sacramento: TPP information for landlords
- Sacramento City Code chapter 5.156 (Tenant Protection)
- City of Sacramento: TPP administrative procedures
- City of Sacramento: 2026 TPP annual rent adjustment notice
- City of Sacramento: Rental Housing Inspection Program
- City of Sacramento: Rental Housing Inspection Program FAQs
- City of Sacramento: Business Operations Tax
- City of Sacramento: business types for the operations tax
- Sacramento City Code 3.08.200 (housing and shelter tax)
- Sacramento County: Rental Housing Inspection Program property owner FAQ
- Sacramento County Department of Finance: business licensing
- California Attorney General: landlord-tenant issues
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.
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