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Many Portland landlords assume that following Oregon's statewide landlord-tenant law is enough to stay compliant. It isn't. The City of Portland layers its own Fair Access in Renting Ordinance on top of state law, and it changes how applications get processed, what screening criteria are allowed, and how security deposits get handled, specifically within city limits. With several 2026 updates now in effect, this is a good time to confirm your current process actually reflects what the ordinance requires today.
Key Takeaways
Portland's FAIR Ordinance (Portland City Code 30.01.087) applies within city limits across Multnomah, Washington, and Clackamas Counties.
Landlords must publicly post rental criteria—including screening standards, rent, fees, and security deposit amounts—prior to accepting applications.
Completed applications must generally be processed in the order they are received.
Combined security deposits and last month's rent collected at move-in cannot exceed 1.5 times the monthly rent.
Deposits must be returned within 31 days after the tenant vacates pursuant to state law.
Landlords must either perform an individualized assessment for each applicant or adopt the Low Barrier Screening Criteria.
Deposit rule violation penalties are capped at $250 per violation, and the depreciation schedule requirement was removed following a 2022 settlement.
2026 updates include Oregon SB 599 (paper application requirements) and HB 3521 (holding deposit refunds related to habitability issues).
Why Portland's Rules Go Further Than State Law
Oregon's statewide landlord-tenant law, found in ORS Chapter 90, sets baseline requirements for security deposits, notices, and screening that apply everywhere in the state. Portland's FAIR Ordinance was adopted specifically because the city wanted to address screening criteria, like criminal history, income requirements, and credit scores, that function as proxies for discrimination even when they aren't explicitly discriminatory on their face.
This means a landlord operating only under an understanding of Oregon state law, without accounting for Portland's additional layer, is very likely missing real requirements if the property sits within city limits. This distinction matters just as much for owners with properties in nearby communities like Sherwood, Tigard, or Beaverton, since those cities aren't subject to the FAIR Ordinance even though they share the same regional rental market and applicant pool.
Processing Applications in Order
One of the most commonly missed FAIR Ordinance requirements is the first-come, first-served processing rule. Landlords generally must process completed applications in the order they receive them, rather than holding an application while waiting to see if a stronger candidate applies later. This is an easy rule to violate unintentionally, particularly for owners self-managing a property who assume comparing multiple applications side by side is standard practice. Our tenant screening process is built around this exact requirement, evaluating each completed application in sequence rather than batching candidates for comparison.
Individualized Assessment vs. Low Barrier Criteria
Under the FAIR Ordinance, a landlord has two paths for screening. The first requires performing an individualized assessment of each applicant before any denial, considering supplemental evidence and mitigating circumstances rather than applying a rigid, automatic disqualification.
The second option is adopting the ordinance's Low Barrier Screening Criteria, which involves following specific, more permissive standards, including restrictions on considering arrest records or older misdemeanor convictions, in exchange for not having to conduct the individualized assessment on every applicant.
Choosing which path fits your process, and applying it consistently across every applicant, matters more than which specific option you pick.
Security Deposits Under the FAIR Ordinance
Combined security deposits and last month's rent collected at move-in cannot exceed one and a half months' rent under Portland City Code 30.01.087, though last month's rent can be collected separately as long as it's itemized. Oregon's state law under ORS 90.300 requires landlords to return deposits, with a written, itemized accounting, within 31 days of the tenant vacating. A 2022 settlement agreement clarified some of the ordinance's more ambiguous provisions, capping landlord liability for deposit violations at $250 per violation and eliminating the depreciation schedule that previously had to be attached to the rental agreement for any landlord-provided fixtures or furniture. An itemized list of any deductions is still required, just without the depreciation schedule component.
Our accounting team tracks deposit collection and return timelines carefully for every Portland property we manage, since these deadlines and caps are easy to miscalculate without a dedicated process.
What Changed in 2026
Two newer developments are worth flagging specifically.
Oregon SB 599 now requires landlords to accept paper applications if a prospective tenant requests one, rather than requiring an online-only process.
Separately, HB 3521, effective January 1, 2026, restricts holding deposits to approved applicants only and requires faster refunds in certain situations, including when habitability issues are involved.
Landlords who haven't reviewed their application and holding deposit procedures since these changes took effect should treat that review as a priority rather than an eventual task, particularly given how quickly Oregon's legislature has continued to revisit landlord-tenant law in recent sessions. Our owner FAQs page covers several related scenarios Portland-area owners have been asking about since these updates took effect.
FAQ
Does the FAIR Ordinance apply outside Portland city limits?
No. It applies specifically within Portland, which spans primarily Multnomah County with small portions extending into Washington and Clackamas Counties.
Can I compare multiple rental applications before making a decision?
Generally no. The FAIR Ordinance requires processing completed applications in the order received rather than holding one application while awaiting others.
How much can I collect as a security deposit in Portland?
Combined deposits and last month's rent collected at move-in cannot exceed one and a half months' rent, though last month's rent can be itemized and collected separately.
Do I have to accept a paper rental application?
Yes, as of Oregon SB 599, landlords must accept a paper application if a prospective tenant requests one rather than requiring an online-only process.
Building a Screening Process That Actually Complies
Portland's FAIR Ordinance adds real complexity on top of Oregon's already tenant-protective state law, and the requirements have continued to evolve since the ordinance was first adopted in 2019. Confirming your posted criteria, application processing order, deposit amounts, and holding deposit procedures all reflect the current rules protects you from a compliance gap that's far more expensive to discover after a denied applicant files a complaint.
If you'd like help reviewing your current screening and deposit practices for a Portland-area rental, reach out to our team today.
