The LA City Rent Stabilization Ordinance covers buildings within Los Angeles with a certificate of occupancy before October 1, 1978 and two or more units. New formula effective July 2026: 90% CPI with 4% ceiling.
RSO caps annual rent increases on covered buildings, requires just cause for evictions, and mandates annual LAHD registration. The current allowable increase (July 2025–June 2026) is 3%. The new formula (effective July 1, 2026) is 90% of CPI, floor 1%, ceiling 4%. The December 2025 RSO rewrite is the largest change to LA rent control in a decade and actively reprices pre-1978 LA City multifamily through 2026.
Roughly 70% of LA City multifamily is RSO-covered. Pre-1978 buildings in Koreatown, Hollywood, Palms, Mid-City, Mar Vista, and most of the LA City Valley fall under RSO. The July 2026 formula change has already expanded cap rates 20-40 basis points on this inventory.
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