Pasadena’s Allowable Rent Increase to Be 2.5% - Annual General Adjustment
Pasadena’s Allowable Rent Increase to Be 2.5% - Annual General Adjustment
The City of Pasadena Rental Housing Board has announced the new Annual General Adjustment (AGA) for rent-stabilized units subject to the city’s rent stabilization and tenant protection ordinance passed by voters as Charter Amendment, Measure E. The new AGA will be 2.5% from October 1, 2026, through September 30, 2027. The Rental Housing Board adopted the new AGA on June 18, 2026.
The AGA is the maximum annual percentage by which rent for covered rental units may be increased for existing tenancies. The AGA is calculated at 75% of the annual change in the Consumer Price Index (CPI) for the Los Angeles region during the previous 12-month period ending on March 31st of each year. For the 2026–2027 April 1 to March 31 period, the CPI had increased by 3.4%, which resulted in a new AGA of 2.5% (although 75% of the 3.4% CPI calculates to 2.55%, under the city’s ordinance, the AGA is rounded to the nearest one-quarter of a percent, resulting in an AGA of 2.5%).
For example, a 2.5% increase on a monthly rent of $2,000 would equal $50, bringing the new monthly rent to $2,050, provided all applicable requirements are met. Pasadena Housing providers must follow all applicable Charter requirements before increasing rent. Any housing providers with questions about coverage, rent increases, or how the AGA applies can contact the Rent Stabilization Department’s Housing Counselors for assistance.