Redwood City Measure E 2026: What It Means for Landlords

Redwood City Measure E: What It Means for Landlords in 2026

Redwood City voters will decide Measure E this November, a ballot initiative that would cap rent increases on most pre-1995 rental buildings at 60% of the Consumer Price Index (CPI) or 5%, whichever is lower, expand just-cause eviction protections to nearly all rental housing in the city, and create a new city agency funded by fees on rental property owners. For owners of duplexes, fourplexes, and small apartment buildings in Redwood City, the measure would change rent-setting, eviction procedure, and the cost of doing business in ways worth understanding well before Election Day.

Key takeaways

• Measure E would apply to roughly 40% of Redwood City's rental stock — multifamily buildings built before 1995 — while its just-cause eviction rules would reach further, to most rental housing including single-family rentals and ADUs.
• Annual rent increases on covered units would be capped at 60% of local CPI or 5%, whichever is lower — tighter than the state's Tenant Protection Act (AB 1482), which allows 5% plus CPI up to a 10% ceiling.
• No-fault evictions would require relocation payments of four times the HUD fair market rent or $12,000, whichever is greater, plus an additional $6,000 for tenants who are seniors, disabled, or terminally ill.
• The city's own fiscal analysis projects $5 million to $11 million a year to administer the program and up to 18 new city staff, funded through new per-unit landlord fees that the same analysis says would cover only 13% to 32% of actual costs.
• The measure qualified for the ballot after Faith in Action Bay Area gathered more than 7,000 signatures; the Redwood City Council voted against it on July 27, 2026, and Mayor Elmer Martínez Saballos and Councilmember Isabella Chu signed the official ballot argument in opposition.

What properties Measure E actually covers

Measure E's rent cap applies to multifamily rental buildings constructed before 1995 — city estimates put this at about 40% of Redwood City's rental housing stock. Single-family homes, condominiums, and newer construction are exempt from the rent cap itself.

The measure's just-cause eviction and relocation provisions reach further, extending to most rental housing in the city, including single-family rentals and accessory dwelling units (ADUs) that are otherwise outside the rent-cap coverage. For an owner who holds both a pre-1995 fourplex and a newer single-family rental, that distinction matters: one property would be rent-capped and fee-assessed, while both would carry the tighter eviction rules.

A tighter rent cap than state law already provides

California's statewide Tenant Protection Act (AB 1482) already limits annual rent increases to 5% plus the local rate of inflation, up to a maximum of 10%, for most rental housing built before 2008. Measure E would layer a stricter local cap on top of that for covered Redwood City buildings: 60% of CPI, capped at 5% — which, at current inflation levels, works out to an increase of roughly 1.2% a year, well below what AB 1482 alone would allow.

For an owner who has relied on AB 1482's higher ceiling to keep pace with rising insurance, property tax, and maintenance costs, this is a meaningfully narrower band to operate in — and one that would not flex much even in a higher-inflation year, since the 5% figure is a hard cap regardless of how high CPI runs.

Expanded just-cause eviction and higher relocation payments

Redwood City already has a tenant protection ordinance adopted in 2022. Measure E would expand on it: strengthening just-cause eviction requirements, adding a right of first refusal and a right to return after certain renovations or owner move-ins, and adding anti-harassment provisions.

The most direct cost impact is on relocation payments for no-fault evictions (an owner move-in, a substantial remodel, or removing a unit from the rental market, for example). Current city rules require relocation assistance of one times the HUD fair market rent; Measure E would raise that to four times the HUD fair market rent or $12,000, whichever is greater, plus an additional $6,000 for households that include a senior, a person with a disability, or someone who is terminally ill. Depending on unit size and the applicable fair market rent figure, that can put a single relocation payment well above $12,000 — a real number for an owner weighing an owner move-in or a renovation that requires vacating a unit.

A new city agency, funded by landlord fees that may not cover the cost

Measure E would establish a permanent city rental housing agency to administer the rent cap, handle petitions and disputes, and enforce the ordinance. The city's supplemental fiscal analysis estimated the program would cost between $5 million and $11.1 million a year to run and require up to 18 new full-time city employees.

The measure itself sets initial landlord fees in the $84 to $120 per-unit range. According to reporting on the city's fiscal analysis, those fees would cover only an estimated 13% to 32% of the program's actual cost in its first two years — implying a true per-unit cost closer to $756 if the program is funded through owner fees alone, before accounting for any general-fund backstop the city council might have to authorize instead. That gap is worth watching for any owner budgeting forward: the fee an owner pays in year one may not be the fee that eventually funds the program at full cost.

Where the measure stands heading into November

The Redwood City Council voted against the measure on July 27, 2026, and on August 11 Mayor Elmer Martínez Saballos and Councilmember Isabella Chu signed the ballot argument against it, while Councilmember Chris Sturken has spoken in support. The California Apartment Association has organized the formal "No on Measure E" campaign. Supporters include Faith in Action Bay Area, the Sequoia District Teachers Association, and several labor and tenant advocacy groups, who argue that rents have outpaced local wages and that stronger protections are needed to keep service-sector and school-district workers housed in the city. Measure E is the only local measure on Redwood City's November 2026 ballot.

What Redwood City owners should do now

Whatever the outcome in November, owners of pre-1995 Redwood City rental property have a few practical steps worth taking before the election settles the question:

• Pull an accurate unit count and construction date for each property to confirm whether it would fall inside or outside the rent-cap coverage.
• Review any planned rent increases, owner move-ins, or renovation-driven vacancies against the relocation payment figures above, since the new no-fault relocation math changes the economics of those decisions regardless of how the vote turns out.
• Talk to a property manager or attorney familiar with Redwood City's existing 2022 tenant protection ordinance about how it would layer with Measure E's provisions if the measure passes.

Frequently asked questions

What is Redwood City's Measure E?

Measure E is a November 2026 ballot initiative that would cap annual rent increases on most pre-1995 multifamily rental buildings in Redwood City, expand just-cause eviction protections to nearly all rental housing in the city, and create a new city agency to administer the program, funded by fees on rental property owners.

Which Redwood City rental properties would Measure E's rent cap apply to?

The rent cap would apply to multifamily rental buildings built before 1995, which city estimates put at roughly 40% of Redwood City's rental housing stock. Single-family homes, condominiums, and newer construction would be exempt from the rent cap, though the measure's just-cause eviction rules would reach most rental housing, including single-family rentals and ADUs.

How would Measure E's rent cap compare to California's existing rent control law?

California's AB 1482 already caps most rent increases statewide at 5% plus local CPI, up to a 10% maximum. Measure E would impose a stricter local cap on covered Redwood City buildings — 60% of CPI, capped at 5% — which works out to roughly 1.2% a year at current inflation levels.

How much would landlords have to pay in relocation assistance under Measure E?

For a no-fault eviction, such as an owner move-in or a renovation that requires vacating a unit, Measure E would require relocation assistance of four times the HUD fair market rent or $12,000, whichever is greater, plus an additional $6,000 if the household includes a senior, a person with a disability, or someone who is terminally ill.

When do Redwood City residents vote on Measure E?

Measure E will appear on the November 2026 general election ballot. It is the only local ballot measure in Redwood City this cycle.

This post is for general information and does not constitute legal advice, tax advice, or financial advice. Talk to your attorney or CPA about how Measure E would apply to your specific property.

Sources

• 2026 Election: Redwood City voters to decide on new rent control laws with Measure E — ABC7 News
• New rent control measure in Redwood City sparks debate — NBC Bay Area
• Redwood City might get a rent-control law on the November ballot — Palo Alto Daily Post
• Redwood City rent measure could cost millions, push landlord fees near $756 a unit — California Apartment Association
• Redwood City Council formally opposes rent control measure — Redwood City Pulse
• Vote No on Measure E