Salem, OR · Marion County · Population ~180,000 (Oregon’s Capital; 2nd-Largest OR City) · Oregon ORS §90.600 SB 611 9.5% Rent Cap · 90-Day Notice Required · 15-Year First-CoC Exemption · 13-Day Pay-or-Quit · 31-Day Deposit Return 2× Penalty · Salem Health Level I Trauma · Oregon State Government ~50,000+ Workers · Chemeketa CC ~18,000 Students · Willamette University · Marion County Circuit Court

Salem OR rent increase 2026 Salem, Oregon — the state capital (~180,000; Marion County; 2nd-largest Oregon city) — is subject to Oregon’s statewide rent cap under ORS §90.600 (SB 611): 9.5% for 2026 (7% + 2.5% West Region CPI-U; cap never exceeds 10%). At least 90 days’ written advance notice is required. Buildings with a first certificate of occupancy in 2011 or later are exempt (15-year rolling window). One increase per 12-month period per unit. No deposit cap; 31-day return; 2× wrongful withholding penalty (ORS §90.300). Non-payment eviction: 13-day pay-or-quit (ORS §90.394); Marion County Circuit Court (100 High St NE, Salem). Oregon state government dominates the Salem economy (~50,000+ state workers in the metro); Salem Health (Level I Trauma; ~6,000 employees) is Salem’s largest private employer.

Salem, Oregon — the state’s capital city, seat of the Oregon Legislative Assembly, and home to Oregon’s largest concentration of state-government employment — is subject to the same statewide rent stabilization law that applies in Portland and Eugene. Salem landlords may not raise covered rents by more than 9.5% in any 12-month period and must give tenants at least 90 days’ written advance notice.

Salem’s rental market is driven by the steady year-round demand from state workers, Salem Health employees, Chemeketa Community College students, and the Willamette University community — creating a relatively stable mid-market with 1BR rents typically $900–$1,350, well below Portland levels.

Oregon statewide rent cap: what Salem landlords must know

Oregon ORS §90.600 (enacted February 28, 2019 via Senate Bill 611) established the first statewide residential rent control in the United States since Massachusetts deregulated in 1994. Salem, as an Oregon city, is fully subject to this law.

The 2026 Salem rent cap is 9.5% — the lower of (a) 7% plus the West Region Consumer Price Index for All Urban Consumers (CPI-U West) for the 12 months ending September 2025, or (b) 10%. Oregon Housing and Community Services (OHCS) announced the 9.5% figure (based on approximately 2.5% CPI-U West) in fall 2025. Salem City Council has no supplemental local ordinance — ORS §90.600 is the only rent cap applicable in Marion County.

  • Cap: 9.5% maximum increase within any 12-month period per unit.
  • Frequency: one increase per 12-month period per unit (ORS §90.600(1)). Multiple small increases do not reset the limit.
  • Notice: 90 days written advance notice required before the increase takes effect (ORS §90.600(4)).
  • 15-year first-CoC exemption: buildings with first certificate of occupancy in 2011 or later are exempt from the 9.5% cap in 2026.
  • Initial rent unrestricted: the cap applies only to increases on existing tenants; initial rent for a new tenancy may be set at any market level.

Penalty for exceeding the cap: ORS §90.600(7) provides that the over-cap portion of any notice is void and unenforceable; a tenant who paid excess rent may sue to recover it plus three months’ rent as additional damages, plus attorney fees.

Oregon’s 90-day no-cause termination rule

After a Salem tenant has occupied a unit for more than 12 months, ORS §90.427(8) imposes two requirements for a no-cause termination:

  • 90 days’ written notice (vs. 30 days in most non-control states).
  • One month’s rent relocation assistance paid within 31 days of serving the notice (or at vacating, whichever is earlier). Failure to pay on time voids the notice.

For a Salem 1BR at $1,100/month, this means a no-cause termination after year one costs the landlord $1,100 in relocation assistance plus 90 days of occupancy from the date of notice. The relocation assistance requirement was added by SB 608 (2019) simultaneously with the statewide rent cap.

Exempt from the relocation requirement (but 90-day notice still required in most cases): owner occupancy move-in, demolition, conversion to non-residential use, or substantial rehabilitation requiring vacancy for 90+ days.

Oregon security deposit rules for Salem landlords

ORS §90.300 governs security deposits for all Salem residential tenancies:

  • No deposit cap. Oregon imposes no maximum. Salem market practice: 1–2 months’ rent.
  • Return deadline: 31 days after termination of tenancy and receipt of the tenant’s written forwarding address (whichever is later).
  • Itemized statement required for any deductions. Normal wear and tear is not a permissible deduction.
  • Wrongful withholding penalty: 2× the amount wrongfully withheld plus attorney fees (ORS §90.300(16)).
  • Move-in condition statement: provide a written premises condition statement (ORS §90.305) at tenancy start; tenant has 7 days to object. Critical for preserving deduction rights.

Salem eviction: the 13-day notice to pay or vacate

Oregon ORS §90.394 requires a 13-day Notice to Pay Rent or Vacate before filing a Forcible Entry and Detainer (FED) action for non-payment. Salem landlords must serve this written notice and wait 13 full days for the tenant to pay or vacate before approaching Marion County Circuit Court.

Service methods (ORS §90.155): (1) personal delivery to the tenant or an adult at the premises; (2) leaving with a person of suitable age plus first-class mail (effective 3 days after mailing); (3) first-class mail only (effective 3 days after mailing, making the effective cure period 16 days from the mailing date). The cure right is absolute during the 13-day window — a tenant who pays all rent owed before the period expires cannot be evicted for that non-payment.

FED filings: Marion County Circuit Court, 100 High St NE, Salem OR 97301 (filing fee approximately $88–$105 depending on process type). Hearing typically scheduled 7–14 days after filing. Total uncontested timeline from 13-day notice to writ of execution: approximately 4–7 weeks.

Oregon state government: Salem’s dominant employer

Salem is the seat of Oregon’s state government and hosts the largest concentration of public-sector employment in the state. Every major Oregon executive agency has its headquarters or primary operations in the Salem metro:

  • Oregon Legislative Assembly: the 60-member House and 30-member Senate, along with hundreds of legislative staff and lobbyists, are based at the Oregon State Capitol (900 Court St NE). Sessions run January–June in odd years; shorter even-year sessions create seasonal housing demand.
  • Department of Transportation (ODOT): approximately 4,500–5,500 employees statewide; Salem headquarters cluster adjacent to the Capitol Mall.
  • Department of Human Services (DHS): approximately 8,000–10,000 employees statewide; central offices Salem.
  • Oregon Health Authority (OHA): 4,500+ employees; Salem headquarters.
  • Oregon State Penitentiary (2605 State St, Salem): Oregon’s oldest correctional institution; approximately 1,500–1,800 employees. Together with Oregon State Hospital (2600 Center St NE; ~2,000 employees), the corrections and psychiatric-hospital cluster adds significant public-sector rental demand in north and east Salem.

Collectively, the Salem metro is estimated to support 40,000–55,000 state-government jobs. State employee pay ranges broadly ($38,000 for entry-level technicians to $200,000+ for agency directors), but the modal state worker earns $55,000–$90,000 — a demographic well-suited to Salem’s $950–$1,350 1BR rental market.

Salem Health: largest private employer and Level I Trauma Center

Salem Health (890 Oak St SE, Salem OR 97301) operates Salem Hospital, a Level I Trauma Center and the largest hospital between Portland and Eugene at approximately 454 beds. Salem Health is the largest private employer in Marion County, with approximately 6,000–6,500 employees including physicians, nurses, surgical technicians, and administrative staff.

Salem Health West Valley (221 SE Washington St, Dallas OR 97338) and other Salem Health satellite clinics throughout the Willamette Valley extend the healthcare employment corridor to surrounding Polk, Benton, and Lincoln Counties — with many employees commuting into Salem for hospital shifts and renting nearby.

Healthcare workers at Salem Health earn $55,000–$180,000+ annually; nurses in particular (Oregon one of the top-paying states for RNs) are a stable rental cohort for Salem’s mid-market apartment inventory.

Chemeketa Community College and Willamette University

Chemeketa Community College (4000 Lancaster Dr NE, Salem OR 97305) serves approximately 18,000 students across its Salem campus and five centers in Polk, Yamhill, and Marion Counties. With approximately 1,400 employees and a primary service area covering the entire mid-Willamette Valley, Chemeketa is one of the largest two-year institutions in Oregon. Its Northeast Salem location generates demand for affordable rentals in the $800–$1,100 range, particularly in the Lancaster / Silverton Rd corridor.

Willamette University (900 State St, Salem OR 97301) is Oregon’s oldest university (founded 1842 as Oregon Institute) and one of the Pacific Northwest’s premier liberal arts colleges, with approximately 3,200 undergraduate and graduate students (including Willamette University College of Law). Its downtown campus, immediately adjacent to the Oregon State Capitol, anchors demand for quality housing in the West Salem / downtown corridor.

Salem rental market: 2026 submarket overview

Salem’s rental market is notable for its stability (dominated by state-government employment), moderate rents relative to western Oregon peers, and the same 9.5% ORS §90.600 cap as Portland and Eugene:

  • Downtown Salem / Riverfront / near Willamette U: $950–$1,350 for 1BR. Proximity to the Capitol, Willamette University, and the Riverfront Park; newer apartment buildings command a premium.
  • Northeast Salem / near Chemeketa CC: $850–$1,200 for 1BR. Older apartment stock; strong student and entry-level state worker demand; more affordable than downtown.
  • South Salem / near Salem Health: $950–$1,300 for 1BR. Healthcare worker corridor; generally well-maintained apartment complexes near the hospital campus on Oak Street.
  • West Salem (Polk County, across the Willamette River): $900–$1,250 for 1BR. Car-dependent; bridge commute to Salem core; slightly lower demand pressure. Note: Polk County is separate from Marion County for court jurisdiction (Polk County Circuit Court, 850 Main St, Dallas OR 97338).

Related Oregon & rent increase resources

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RentCeiling covers all Oregon cities including Salem, Portland, and Eugene under ORS §90.600. Enter your Salem unit to verify the 9.5% 2026 cap, confirm your 15-year CoC exemption status, and document your 90-day notice with a timestamped compliance log entry — useful evidence if a tenant later disputes the increase.

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