The city's new rent cap was set to start January 1, 2027. A referendum petition may put it before voters first. Here is where things stand.
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Santa Barbara Rent Control 2027 | Johannes Steenkamp, REALTOR®
Santa Barbara's rent stabilization ordinance caps increases at 60% of CPI or 3%. See who's covered, the referendum status, and what it means for owners.
Santa Barbara rent control, rent stabilization ordinance, Santa Barbara landlords, duplex Santa Barbara, multifamily investing, Santa Barbara real estate 2027
Santa Barbara adopted a rent cap of 60% of CPI or 3%, whichever is lower, for most rentals built before 1995. A referendum petition could delay it. Here's what owners, sellers and buyers should know.
Quick answer
The City of Santa Barbara adopted a Rent Stabilization Ordinance on October 6, 2026, by a 4–3 City Council vote.
The Santa Barbara rent cap limits annual increases to 60% of CPI or 3%, whichever is lower. The city set the 2027 allowable increase at 2.1%.
The cap applies to rental units in the City of Santa Barbara built before 1995. Most single-family homes and condos are exempt under state law.
Every rental property in the city must join a new rental registry, funded by per-unit fees that are still being set.
A referendum petition with about 9,100 signatures was submitted in early November 2026. If verified, the ordinance would be repealed or sent to voters, likely in a 2027 special election.
The ordinance covers only the City of Santa Barbara. Montecito, Goleta, Carpinteria, unincorporated county areas and the Santa Ynez Valley are not covered.
Why this matters now
Santa Barbara is moving from statewide rent rules to its own, much tighter local cap. That change affects what rental property earns, what it sells for, and who wants to buy it.
The road here took most of 2026. The City Council passed a temporary rent freeze in January 2026. It took effect February 27, 2026, and runs through December 31, 2026. The permanent ordinance followed in the fall.
The timeline is now uncertain. Opponents filed a referendum petition in November 2026. On November 10, the council postponed a vote on extending the rent freeze to November 17 after receiving a letter threatening litigation.
If you own, plan to sell, or plan to buy rental property in the city, the next few months matter.
What the Santa Barbara rent stabilization ordinance does
The ordinance creates two programs: a rent cap for older units and a rental registry for all rentals in the city.
Annual rent cap: Increases are limited to 60% of the Consumer Price Index or 3%, whichever is lower.
2027 allowable increase: The city set the general adjustment at 2.1% for January 1 to December 31, 2027.
Notice: Landlords must give tenants at least 30 days' written notice of an increase.
Rental registry: All rental properties in the city must register. Per-unit fees will fund the program, which is estimated to cost $2 million to $2.5 million a year. A fee study is setting the amount.
Rent Stabilization Board: A new board will guide the program and hear appeals on tenant and landlord petitions. Applications are due December 2, 2026.
Removing units from the market: Under the city's Ellis Act rules, an owner must withdraw all units at a property at once. The units can't be re-rented for five years.
The city also allocated $500,000 from its Measure I housing fund to start the program.
Is my property covered by Santa Barbara rent control?
Coverage depends on location, the year the unit was built, and the type of property. Start with this table.
Property type
Rent cap applies?
Registry applies?
Apartment building, built before 1995, City of Santa Barbara
Yes
Yes
Duplex built before 1995, owner does not live there
Yes
Yes
Duplex where the owner lives in one unit
No (exempt)
Yes
Single-family home that can be sold on its own
No (exempt under state law)
Yes
Condo that can be sold on its own
No (exempt under state law)
Yes
Built on or after February 1, 1995
No (exempt)
Yes
Deed-restricted or government-subsidized affordable housing
No (exempt)
Check with the city
Qualifying Section 8 voucher tenancies
No (exempt)
Check with the city
Property in Montecito, Goleta, Carpinteria or the Santa Ynez Valley
No (outside city limits)
No
State law (AB 1482) still applies to many rentals the local cap doesn't cover. Exemptions often depend on written notice language in the lease, so confirm your status before setting a 2027 increase.
The referendum: where things stand (as of November 12, 2026)
The January 1, 2027 start date is in question. A referendum petition against the ordinance was submitted to the city clerk in early November 2026.
Signatures: The "Help Save Santa Barbara Housing Committee" submitted more than 9,100 signatures. About 5,500 valid signatures are needed.
Backers: The petition is supported by the Santa Barbara Rental Property Association, which opposes the ordinance.
Next step: The clerk must verify the signatures. If the petition qualifies, the council must either repeal the ordinance or put it to voters. City staff have recommended a special election in the first half of 2027.
The rent freeze: The temporary freeze ends December 31, 2026. On November 10, the council delayed a vote on extending it to November 17 after a litigation threat. The referendum committee has said it may pursue another petition if the freeze is extended.
What happens if there's a gap? If the ordinance is on hold and the freeze lapses, state law (AB 1482) would govern covered units. Local reporting notes that could allow increases of up to 8.6%.
I'll update this post as the council and the city clerk act. Supporters say the cap protects tenants from steep increases. Opponents say it raises costs for small landlords and discourages new housing. Voters may get the final word.
What it means for sellers, buyers and homeowners
If you own a pre-1995 duplex or apartment building:
Income growth on covered units would be capped well below state law. Buyers will price that into their offers.
Pull your rent roll, lease dates and certificate of occupancy now. Buyers and lenders will ask for them.
If you're weighing a sale, the referendum outcome affects your buyer pool and pricing. Ask a local agent to run numbers both ways.
If you're buying rental property in the city:
Underwrite with the local cap, not the state cap. Use 2.1% for 2027 and never more than 3% a year after that, until the vote says otherwise.
Check the build year, unit count and owner-occupancy history before you write an offer.
Ask for registry status and any rent increase notices given in 2026.
Properties outside city limits, such as Goleta, Carpinteria and the Santa Ynez Valley, are not covered by this ordinance.
If you own a single-family home or condo you rent out:
Your rents are generally exempt from the local cap, but you still need to register.
State law notice requirements still apply, so check your lease language.
If you plan to live in one unit of a duplex:
Owner-occupied duplexes are exempt from the cap. That can make a house-plus-rental purchase more attractive.
Example: one unit, two sets of rules
The local cap can cut rent growth on a covered unit by more than two-thirds compared with state law. Take a pre-1995 Westside duplex unit renting for $3,500 a month.
Scenario
Monthly increase
New monthly rent
Extra rent per year
Santa Barbara cap, 2027 (2.1%)
$73.50
$3,573.50
$882
State law, if no local cap (up to 8.6%)
$301.00
$3,801.00
$3,612
That's a difference of $2,730 a year on one unit. On a fourplex, it's nearly $11,000 a year in income, before any change in the value buyers will pay.
This is an illustration only. Actual limits change each year with CPI, and the 8.6% figure is the current state maximum reported for this area.
Frequently asked questions
Does Santa Barbara have rent control? Yes. The City of Santa Barbara adopted a Rent Stabilization Ordinance on October 6, 2026. It caps annual increases at 60% of CPI or 3%, whichever is lower, for most rental units built before 1995. A pending referendum could delay it or send it to voters.
When does Santa Barbara rent control start? The city planned to start the program on January 1, 2027. A referendum petition submitted in November 2026 could put the ordinance on hold until a public vote, which city staff recommended for the first half of 2027.
What is the maximum rent increase in Santa Barbara for 2027? For units covered by the Santa Barbara rent stabilization ordinance, the city set the 2027 allowable increase at 2.1%. Landlords must give at least 30 days' notice.
Are single-family homes and condos covered by Santa Barbara rent control? Generally no. Single-family homes and condos that can be sold separately are exempt from the local cap under state law. They must still join the city's rental registry.
Is a duplex covered by Santa Barbara rent control? A duplex built before 1995 is covered unless the owner lives in one of the units. Owner-occupied duplexes are exempt from the cap.
Does Santa Barbara rent control apply in Montecito, Goleta or Carpinteria? No. The ordinance applies only inside City of Santa Barbara limits. Montecito, Goleta, Carpinteria, unincorporated Santa Barbara County and the Santa Ynez Valley are not covered.
Does rent control lower property values? Rent caps limit how fast income can grow on covered units, and buyers price income into their offers. The effect depends on the property, its current rents and the referendum outcome. A property-specific analysis is the best way to know.
Thinking about selling or buying rental property in Santa Barbara?
Rent control changes the math on duplexes and small apartment buildings. I can show you what your property earns and what it could sell for under the local cap, under state law, and after the referendum vote.
Johannes Steenkamp, REALTOR®, SFR®, SRES® Keller Williams Realty Santa Barbara · 1511 Chapala St, Santa Barbara, CA 93101 (805) 886-6581 · jsteenkamp@kw.com · www.johannessteenkamp.com CalDRE# 02057072 Serving Santa Barbara, Montecito, Carpinteria, Goleta and the Santa Ynez Valley. People first. Property second.
Disclaimer: This post is general information, not legal or tax advice. The ordinance and referendum are changing quickly. Confirm details with the City of Santa Barbara and a qualified attorney before acting.
Sources
Santa Barbara Independent – Council adopts rent stabilization ordinance in 4–3 vote (Sept. 30, 2026)
Santa Barbara Independent – City may face litigation over temporary rent freeze (Nov. 11, 2026)
Santa Barbara Independent – Residents wary of petition against rent stabilization (Nov. 3, 2026)
KEYT – Rent stabilization referendum gains momentum (Nov. 6, 2026)
KEYT – City threatened with litigation over rent freeze (Nov. 10, 2026)
Noozhawk – Council may extend rent freeze with pending referendum
California Apartment Association – Santa Barbara approves temporary rent freeze