LA Rent-Stabilized Owners · July 1, 2026–June 30, 2027
LA's annual RSO allowance is 3%.
LAHD publishes a 3% annual allowable increase for covered City of Los Angeles RSO units from July 1, 2026 through June 30, 2027. What that means for your building depends on actual income, expenses, and buyer evidence. Start with a property-specific review.
Source: LAHD annual rent increase bulletin. Coverage and applicable increase requirements must be verified.
Request your RSO Decision BOVWhy this matters
The annual allowance is one input. Your operating numbers complete the picture.
The revised formula, effective February 2, 2026, uses 90% of average CPI with a 1% floor and a 4% ceiling. That ceiling does not establish this year's allowance or future annual growth. See LAHD's formula update. An income approach capitalizes NOI; actual rents, occupancy, operating expenses, and comparable-sale buyer evidence inform the valuation.
A rent percentage alone does not establish a value loss or a reason to sell. Review your actual rent roll, expenses, financing, and objectives before comparing hold, refinance, or sell scenarios. Check future annual allowances when LAHD publishes them. (Where a refinance is the path, we run that side through WCA Mortgage Brokerage.)
Run your building's baseline in the workbench below. Then request the complimentary BOV for a review using your actual rent roll, expenses, and current market evidence.
Hypothetical BOV Calculator
Model your property — hypothetically.
Run your own numbers through the BOV logic: income approach, comparable-sale range, mandatory SoCal land-value floor, debt capacity, strategic alternatives, and audit-readiness gates. It is a hypothetical sandbox — the defensible number comes from a working session with Francisco Williams, CCIM.
Value at stake · hypothetical
$821K
What an income-only read can leave on the table versus the reconciled, stabilized, and land-floor view. Pinning this number down and defending it is the work of a session.
Current gate
Draft - more source proof needed
Land floor is material: The SoCal land-value floor is close enough to affect negotiation posture.
Complimentary · ~15 minutes · No obligation · You keep your analysis
Francisco Williams, CCIM · CalDRE #01979442 · (213) 880-8107
Why free? Owners who see their real number often become clients — there is no obligation if you do not.
Hypothetical and illustrative only — not a Broker Opinion of Value. A real BOV requires verified rent roll, operating statements, title/vesting, comps, zoning, and Francisco Williams, CCIM review.
Assumptions
Valuation inputs
The property
Financing, occupancy & upside
Income approach
$6.22M
Comp midpoint
$5.76M
Refi max loan
$3.87M
Land floor
$4.94M
Income approach
NOI $420K / 6.75% cap
$6.22M
Comparable sales
$4.68M - $6.84M range
$5.76M
SoCal land floor
SoCal Mandatory52,000 land SF x $95/SF
$4.94M
Reconciled value
Multifamily synthesis before broker adjustment
$5.96M
Cap -50 bps
$6.72M
Selected cap
6.75%
Cap +50 bps
$5.79M
Your RSO Decision BOV
What do the current rules mean for your building?
Get a complimentary, CCIM-prepared Broker Opinion of Value re-underwritten to the current RSO formula — income approach, comparable sales, a mandatory SoCal land-value floor, and hold / refinance / sell scenarios on your actual rent roll. No cost, no obligation, no listing pitch attached.
- Current annual allowance, actual income and expenses, and comparable-sale evidence
- Prepared under Francisco Williams, CCIM · CalDRE #01979442 · (213) 880-8107
- Hold / refinance / sell scenarios, with a SoCal land-value floor
Questions owners are asking
- What changed with the LA RSO in 2026?
- Effective February 2, 2026, the City of Los Angeles RSO annual formula uses 90% of average CPI, with a 1% floor and 4% ceiling, replacing the former 3%–8% band. Separately, LAHD publishes a 3% annual allowable increase for July 1, 2026–June 30, 2027. The 4% formula ceiling is not the current allowance or a promise of future annual rent growth. Coverage and applicable increase requirements must be verified.
- How can rent limits affect my building's value?
- An income approach capitalizes net operating income. Allowable rent increases are one input; actual rents, occupancy, expenses, financing, and comparable-sale buyer evidence also matter. A rent limit alone does not establish a change in NOI, cap rate, or value.
- Should I sell?
- The annual percentage alone cannot answer that. Review the property's actual income and expenses, financing, comparable sales, and your objectives before comparing hold, refinance, and sell scenarios. Future annual allowances must be checked when LAHD publishes them.
- What does the complimentary BOV include?
- A CCIM-prepared Broker Opinion of Value re-underwritten to the current RSO formula, with an income approach, comparable sales, a mandatory SoCal land-value floor, and hold / refinance / sell scenarios. It is complimentary and not an appraisal.
- Why is the BOV complimentary?
- A broker opinion of value is how we earn a first conversation with owners who may one day need us — some of whom read the BOV, correctly decide to hold, and owe us nothing. That outcome is fine with us. There is no listing agreement attached and no obligation created.
This page is general market commentary and marketing for informational purposes only — not investment, legal, tax, or accounting advice, and not an offer or solicitation. Figures are illustrative, derived from sources believed reliable but not independently verified, and are not a guarantee of future results; prospective parties should independently verify all information and consult their own advisors. Any Broker Opinion of Value is prepared under Francisco Williams, CCIM, includes a mandatory SoCal land-value floor on commercial assets, and does not constitute an appraisal. Financing references are provided through WCA Mortgage Brokerage (Francisco Williams, NMLS #1858674); rates and program terms are illustrative and subject to lender approval and a borrower-specific quote. Williams Capital Advisors DRE 02030467 | Exp Commercial of California, Inc. DRE 02134436 · Powered by Exp Commercial of California, Inc. · Francisco Williams, CCIM | Executive Vice President | CA Broker Lic. DRE 01979442.