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Texasยท Answer

How is a Texas rent increase calculated when there is a percentage cap?

Short answer

Take the current monthly rent, multiply by the cap percentage, and that is the maximum dollar increase. For example, a 5 percent cap on $2,000 monthly rent gives a maximum increase of $100, for a new rent of $2,100. Where the cap is "5 percent plus CPI capped at 10 percent" (such as California's AB 1482), look up the relevant regional CPI for the prior 12 months on the Bureau of Labor Statistics website. If CPI is 3 percent: 5 plus 3 equals 8 percent allowed (under the 10 percent cap). If CPI is 6 percent: 5 plus 6 equals 11 percent which is capped at 10 percent. If CPI is negative: only the base 5 percent applies. Round to the nearest dollar. Texas has no statewide statutory advance notice for rent increases. Lease terms govern. Default practice is 30 days written notice on a month-to-month tenancy, matching the Tex. Prop. Code 91.001 termination rule. No state rent cap, and local rent control is preempted. Use a calculator rather than rely on memory; small CPI errors compound over multi-year tenancies.

Source: Lease-based; Tex. Prop. Code 91.001 (30-day month-to-month termination default)


Honest limits

This is an informational answer based on Lease-based; Tex. Prop. Code 91.001 (30-day month-to-month termination default) as of early 2026. It is not legal advice. Housing law changes year to year and local ordinances (especially in rent-controlled or rent-stabilized cities) can override or add to state law. For contested cases, consult a Texas-licensed attorney.

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