Housing Laws 2025: What Portland Landlords Should Know

In 2024, Portland, Oregon, saw a wave of new housing laws aimed at reshaping the rental market and addressing the ongoing housing crisis. These changes are complemented by Oregon’s continued rent control policies, which cap annual rent increases and require landlords to provide relocation assistance in certain cases. In 2025, the rent increase cap is 10%—the same as in 2024.

While recent reforms aim to balance the scales between landlords and tenants, they also introduce new responsibilities for property owners. Adapting to these new regulations is essential for landlords to maintain compliance and foster positive tenant relationships in this dynamic legal landscape.

Without further ado, here’s our guide to all the new housing laws Portland saw in the past year and how landlords should plan on navigating it.

Housing Regulatory Relief Code Amendments

In January 2024, the Portland City Council approved the Housing Regulatory Relief code amendments, effective March 1, 2024, to streamline residential development processes and address housing needs.

Temporary Exemptions and Amendments

The ordinance allows residential projects with approved land use reviews or pending development permits submitted before March 1, 2024, to utilize specific exemptions and amendments from the new code. These provisions include:

• Non-conforming Development Upgrades (NCUs): Adjustments to requirements for existing non-conforming developments.
• Bicycle Parking Regulations: Modifications to standards for bike parking facilities.
• Ground Floor Active Use Requirements: Changes affecting the Centers Main Street Overlay, Central City, Northwest Plan District, and West Portland Multicultural Plan District.

Projects must ensure that adopting these provisions does not conflict with existing land use review decisions, conditions of approval, or other applicable development standards.

Extensions of Land Use Review Decisions

Previously, due to the COVID-19 pandemic, the Council extended deadlines for land use review decisions to obtain issued building permits, with this period ending on December 31, 2023. The new ordinance further extends these deadlines:

New Expiration Date: Final decisions for land use reviews effective between March 8, 2017, and March 1, 2020, now expire on March 1, 2025, if a city permit has not been issued or the approved activity has not commenced.

These measures aim to provide flexibility for residential projects, facilitating development and contributing to Portland’s housing goals.

Housing Production Strategy (HPS)

In August 2024, the Portland City Council unanimously adopted the city’s first Housing Production Strategy. This five-year action plan comprises 35 strategies aimed at promoting housing development to meet the community’s current and future needs, with a focus on equitable and affordable options across various income levels. The HPS emphasizes collaboration among city bureaus and stakeholders to increase housing capacity, particularly in high-opportunity neighborhoods.

What this means for Portland landlords: The actionable changes of this strategy continue to develop, but may involve either incentives for landlords to create more accessible, affordable housing, or increase regulations on housing that does not meet the strategy’s goals. Either outcome will likely influence developers’ and landlords’ ongoing investment strategies.

Statewide Housing Investments

Earlier in the year, the Oregon Legislature passed a $376 million housing package to boost housing production statewide. This initiative includes funding for emergency shelters, homeless prevention services, and affordable housing projects. While not exclusive to Portland, the city’s housing market is expected to benefit from these investments, which aim to alleviate the housing shortage and improve affordability.

What this means for Portland landlords: More investment in affordable housing projects means more properties available for rental investments. If you’re interested in contributing to our city’s affordable housing rentals, this package may help.

Accessory Dwelling Units (ADUs) Incentives

To increase the housing supply, Portland continued its program offering up to $15,000 in fee waivers for property owners constructing Accessory Dwelling Units (ADUs). To qualify, owners must commit to not using the property for short-term rentals, thereby ensuring these units contribute to long-term housing availability.

What this means for landlords: If you own and/or occupy a property where an ADU is permitted, you may be able to create a new rental unit and increase your income.

The Inclusionary Housing Calibration Project

The Inclusionary Housing Calibration project enhances incentives for development projects across more areas of Portland by expanding eligibility for property tax exemptions under the City’s Inclusionary Housing policies. Specifically, the 10-year Multiple-Unit Limited Tax Exemption (MULTE) can now apply to up to 100% of the residential structural improvements, encompassing both market-rate units and those restricted to specific affordability criteria.

This expanded tax exemption is available for projects that have not yet obtained a certificate of occupancy and are located within designated areas of the city. To qualify, these projects must include units affordable to households that earn 60% or less of the area’s median income (AMI). Additionally, buildings in eligible areas without issued building permits have the option to modify their inclusionary housing requirement from 80% AMI to 60% AMI to meet the updated criteria for the exemption.

What this means for landlords: Landlords of qualifying developments can benefit from significant property tax savings for up to 10 years. This reduces overall operating costs and can improve the profitability of projects that meet the inclusionary housing requirements.

Looking at 2025 Legislative Changes for Portland Rentals

As Portland’s rental market evolves, staying compliant with new housing laws is critical for landlords to navigate the complex regulatory environment and maintain positive tenant relationships. The sweeping reforms introduced in 2024—spanning tenant screening, eviction processes, electronic communication, and rent control—require landlords to adapt quickly and accurately. Noncompliance can result in fines, legal challenges, or strained tenant relationships, making professional guidance more important than ever.

Rent Portland Homes Darla Andrew’s Office is here to help landlords successfully navigate these changes. With deep expertise in local housing laws, our team provides personalized property management services, ensuring landlords stay compliant with Portland’s regulations. Our team assists investment property owners with every phase of the rental process, including placing tenants, conducting ongoing repairs and maintenance, managing move-outs, and even evictions, if necessary. Along the way, we support property owners with day-to-day tasks like revising lease agreements, managing tenant communications, and implementing policy updates.

Rent Portland Homes Darla Andrew’s office offers comprehensive support tailored to your needs. Contact our experienced team today at (503) 515-3170 or through our website to safeguard your property, protect your investments, and build lasting relationships with your tenants in this evolving landscape.