Santa Barbara Rent Control: What Multifamily Owners Need to Know

Updated October 8, 2026. An earlier version of this post misstated the ordinance's coverage date and increase formula. For live status and the full text, see sbrso.com/ordinance. For what the October 6 adoption means for owners, read Santa Barbara City Council Gives Final Approval to Rent Control, 4–3.

Santa Barbara now has rent control. The City's rent stabilization ordinance, as the law is formally called, is one of the most consequential factors in the local multifamily market, and one of the most misunderstood. This guide covers the basics every owner and prospective buyer needs to know.

Where It Stands

The City Council adopted Santa Barbara's permanent rent stabilization ordinance on October 6, 2026, by a 4–3 vote. The ordinance, new Chapters 26.90 and 26.100 of the Municipal Code, takes effect November 5, 2026 unless a referendum petition qualifies, and its rent limits apply from January 1, 2027. Until then, a temporary rent freeze, Ordinance No. 2026-6206, holds rents on covered units at their December 16, 2025 levels; it has been in place since February 26, 2026 and expires December 31, 2026. SBRSO, the research site our team built, tracks every step.

What It Covers

As adopted, the ordinance covers rental units whose certificate of occupancy was issued before February 1, 1995. Single-family homes and condominiums are generally exempt under state law, including corporate-owned ones. Owner-occupied duplexes and student housing are covered. The ordinance also exempts stays of 30 days or fewer, hospitals, care homes and treatment programs, deed-restricted affordable units, and Section 8 voucher units whose rent is at or below the Housing Authority's payment standard. Nearly every rental unit in the city, covered or not, will have to register with the City under a new rental registry.

Allowable Rent Increases

Rents start from the base rent in effect on December 16, 2025, and covered rents stay frozen at that level through December 31, 2026. Once a year, owners may raise rents by the annual general adjustment: 60% of the April-to-April change in the California Consumer Price Index, rounded to the nearest quarter percent, never more than 3% and never below zero. Unused increases can't be banked. The first adjustment, effective January 1, 2027, works out to about 2.1%. When a unit is lawfully vacated, state law lets the owner set a new starting rent.

Owners can ask for more through two petitions. A fair-return petition asks whether the property's net operating income has kept pace with its 2025 base year, adjusted for inflation. A capital-improvement petition passes through the cost of qualifying work, capped at 10% of rent or $100 a month, whichever is less, and first requires an approved capital improvement plan. Our free Fair Return Calculator runs the ordinance's own test on your numbers.

Just-Cause Eviction

Eviction rules sit in a separate chapter of the Municipal Code, Chapter 26.50, Just Cause for Residential Evictions. In January 2026 the council tightened its Ellis Act provisions: an owner withdrawing units from the rental market must withdraw every unit on the parcel, and the property can't return to rental use for five years. Further amendments are expected this fall. This is a critical consideration for buyers underwriting to a value-add strategy.

What This Means for Buyers

Buyers of covered properties need to underwrite carefully. Below-market rents may be locked in for years, and the path to market rents runs through tenant turnover, not rent increases. Request a unit-by-unit rent roll showing current rents against market, confirm each unit's coverage and registration status, and model a realistic turnover timeline. Outside the city limits, in Goleta, Carpinteria and the unincorporated South Coast, the statewide cap applies instead; see our AB 1482 guide.

Santa Barbara Rent Control FAQ

Does Santa Barbara have rent control?

Yes. The City Council adopted the rent stabilization ordinance on October 6, 2026, by a 4–3 vote. It takes effect November 5, 2026, unless a referendum petition qualifies, and its rent limits apply from January 1, 2027. The temporary rent freeze covers the rest of 2026.

How much can a landlord raise rent in Santa Barbara in 2027?

For covered units, the annual general adjustment is 60% of the change in California CPI, never more than 3% and never below zero. For 2027 that works out to about 2.1%. Rent can go up once in 12 months, with at least 30 days' written notice.

Which rentals does Santa Barbara's rent control cover?

Most units with a certificate of occupancy issued before February 1, 1995. Single-family homes and condominiums that can be sold separately are generally exempt, and owner-occupied duplexes are covered.

Does rent control apply in Goleta, Carpinteria or Isla Vista?

No. The ordinance applies only inside Santa Barbara city limits. Goleta, Carpinteria, Isla Vista and the rest of the unincorporated county fall under California's statewide cap; see our AB 1482 guide.

Can I reset the rent to market when a tenant moves out?

Yes. State law lets an owner set the starting rent for a new tenancy after a lawful vacancy. Annual increases are then limited from that rent.

Do I have to register my rental with the City?

Almost certainly. Nearly every rental unit in the city must register, including exempt units. Covered units are due by April 1, 2027 and all others by October 1, 2027.

This post is for informational purposes only and does not constitute legal advice. Consult an attorney for guidance specific to your property.