Real estate investors who ignore the regulatory environment learn expensive lessons. Oregon has some of the most landlord-restrictive laws in the country, and Salem investors who don't understand the rules before they buy risk their returns, their relationships with tenants, and in some cases their legal standing. Here's what every Salem OR rental property owner needs to know heading into 2026.
Oregon's Statewide Rent Control and Eviction Laws: What They Mean for Salem Landlords
Oregon was the first state in the nation to pass statewide rent control — and the law remains in force for Salem landlords in 2026. Under Oregon Revised Statute 90.323, landlords cannot increase rent more than 7% plus the Consumer Price Index (CPI) in any 12-month period for most residential rentals. The exact allowable increase adjusts annually based on CPI — for 2026, landlords should verify the current cap with Oregon Housing and Community Services before issuing any rent increase notice.
Important exceptions apply: properties that received a certificate of occupancy within the last 15 years are exempt from rent control. This is a meaningful distinction for investors evaluating newer Salem construction versus older inventory. Newer properties give landlords more flexibility on rent adjustments — a factor worth weighing alongside acquisition price when comparing investment options. Ty Hildebrand at Realty One Group helps investors factor regulatory nuance into their property evaluation from day one.
Oregon also has strong tenant protections around eviction. For month-to-month tenancies after the first year, landlords must provide just cause for termination — meaning no-cause evictions are generally prohibited in Salem. This isn't a reason to avoid investing in Salem, but it does mean that tenant screening at the front end is critically important. Bad tenants are harder to remove in Oregon than in many states. Invest in thorough screening processes and work with a professional property manager who understands Oregon law.
Short-Term Rental Regulations and Other Local Considerations
Investors considering short-term rentals (Airbnb, VRBO) in Salem should be aware that the City of Salem has regulations governing STR operations, including licensing requirements, owner-occupancy rules in some zones, and neighborhood association restrictions in certain areas. The short-term rental landscape in Salem is more restricted than in coastal Oregon markets like Lincoln City or Newport, where STR demand is tourism-driven. Salem's STR market is smaller and more regulatory-sensitive — factor that into any strategy that depends on short-term income.
Ty Hildebrand, a 21-year veteran real estate agent at Realty One Group Salem OR with over 400 properties sold and 21 Google five-star reviews, advises investors to treat regulatory due diligence as a non-negotiable step: "Oregon's landlord-tenant law is detailed and it changes. I always recommend investors work with a local property manager and a real estate attorney before they establish their rental strategy — not after they've already bought and made promises to tenants they can't legally keep."
Browse Salem investment properties currently available, review the 2026 Salem market snapshot for broader context, and connect with Ty Hildebrand at Realty One Group for a regulation-aware investment strategy tailored to your goals in Salem OR.
Contact Ty Hildebrand at Realty One Group | (971) 600-3663 | ty@rogwv.com for a FREE 2026 Market Strategy Session