Broker report: Rent control reduces Portland’s taxable property base

An aerial view shows multiple buildings.

FILE PHOTO / PETER VAN ALLEN Portland’s rent control ordinance took effect Jan. 1, 2021, to establish a base rent for most units and cap the amount by which landlords can hike rents annually.

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By Laurie Schreiber

Portland’s rent control ordinance reduces the city’s taxable property base by 3.2% to 5.4%, forcing a tax burden shift onto other property owners, a report released this week shows.

The report, commissioned by the Greater Portland Board of Realtors and authored by Portland-based Wallace Economic Advisers, touches on a hot-button issue in the city. While there's a pressing need for affordable housing, landlords have argued they are also squeezed by inflation and higher expenses.

Portland’s rent control ordinance was approved by voters in November 2020 and took effect Jan. 1, 2021. It established a base rent for most units in the city and capped the amount by which landlords can hike rents annually.

The ordinance was intended to stabilize housing costs.

But it’s also shifting millions of dollars in property taxes onto other property owners, the report says.

According to the report:

Roughly 63% of the added tax burden falls on single-family and condominium owners.
For the median Portland home worth $605,000, that means an extra $224 to $379 in fiscal year 2026.

“By capping rental income, rent control reduces the taxable value of many multi-unit properties,” said Ryan Wallace, principal economist at Wallace Economic Advisers. “That tax responsibility doesn’t go away. It shifts onto Portland’s single-family households.”

The analysis, “Evaluating the Impact of Rent Control on Property Tax Burdens in Portland,” was prepared using standardized appraisal methods and publicly available data to assess the effects of rent control during Portland’s 2025 revaluation.