Navigating Portland’s FAIR Ordinance: What Every Landlord Needs to Know

For residential landlords and property managers in the City of Portland, managing rental properties requires navigating one of the most comprehensive regulatory frameworks in the country. At the center of this landscape is Portland’s Fair Access In Renting (FAIR) Ordinance (PCC 30.01.086 and PCC 30.01.087).

Enacted to lower barriers to housing and promote equitable access for renters, the FAIR ordinance fundamentally reshaped how landlords advertise vacancies, screen prospective tenants, and manage security deposits. Whether you operate a single duplex or manage a large multi-family portfolio, understanding these rules is essential to remaining compliant and avoiding costly penalties.

What Is the FAIR Ordinance?

Adopted by the Portland City Council, the FAIR ordinance is divided into two core pillars:

1. Application and Screening Requirements (PCC 30.01.086): Regulates how rental units are marketed, how applications are queued and evaluated, and what criteria landlords may use to accept or deny applicants.

2. Security Deposit Requirements (PCC 30.01.087): Establishes caps on deposit amounts, mandatory condition reports, itemization guidelines, and strict standards for depreciation when withholding funds for repairs.

Key Requirements Landlords Must Follow

1. The 72-Hour Notice and Open Application Period

Gone are the days when landlords could list a vacancy and immediately begin reviewing applicants. Under FAIR:

• Landlords must publish a 72-hour advance notice before accepting applications. The listing must state the exact date and time the application window opens.

• Applications received before the designated open period are subject to an 8-hour penalty added to their submission timestamp, ensuring an equal playing field.

• Landlords must process applications on a strict first-come, first-served basis.

2. Choosing a Screening Method: Low-Barrier vs. Non-Low-Barrier

Landlords must choose one of two paths for tenant screening and explicitly state it in the rental advertisement:

• Low-Barrier Screening: Adopts the City’s preset standards. For example, landlords cannot reject applicants for credit scores above 500, bankruptcies older than one year, or criminal convictions older than seven years for felonies (three years for misdemeanors).

• Non-Low-Barrier Screening (Standard Criteria): Landlords who use more stringent criteria (such as higher credit thresholds) must conduct an Individualized Assessment before denying any applicant. This assessment requires landlords to review mitigating factors, letters of recommendation, rehabilitation evidence, and the applicant’s written explanation before issuing an adverse decision.

3. Limits on Income Requirements

Landlords cannot require an applicant’s monthly household income to exceed 2x or 2.5x the monthly rent (depending on whether the rent is below or above the 80% Median Family Income threshold). Furthermore, medical debt and student debt cannot be treated as negative credit factors.

4. Strict Security Deposit Protections

Deposit rules under FAIR require active documentation:

• Deposit Limits: Security deposits generally cannot exceed one-half to one full month’s rent depending on whether pre-paid last month’s rent is collected.

• Condition and Depreciation: Landlords must provide a comprehensive Condition and Inventory Report at move-in and move-out with photo documentation.

• Depreciation Schedule: Landlords cannot deduct the full replacement cost of aging fixtures or flooring; deductions must factor in the item’s useful lifespan using standard depreciation schedules.

Why the FAIR Ordinance Matters to Landlords

1. Substantial Financial and Legal Liability

Non-compliance with the FAIR ordinance is not a minor oversight. Tenants and prospective applicants who experience violations can pursue legal remedies, statutory damages, attorney fees, and administrative penalties. A procedural mistake—such as reviewing an application out of order or omitting mandatory disclosure language in a listing—can lead to formal administrative complaints.

2. Administrative Burden and Process Standardization

FAIR eliminates informal “gut feeling” tenant selection. Landlords must implement standardized, auditable workflows:

• Keeping detailed logs of application timestamps.

• Preserving written justifications and scoring criteria for every applicant.

• Providing written notices of denial detailing the exact reasons and screening reports used.

For smaller, independent landlords (“mom-and-pop” owners), this level of administrative rigor often requires adopting specialized property management software or partnering with professional management firms.

3. Increased Upfront Risk Management

Because landlords must work within stricter screening parameters, risk management must happen through rigorous verification rather than blanket disqualifications. Landlords must master verifying legal sources of income, checking rental references accurately, and documenting property condition meticulously at move-in.

Best Practices for Staying Compliant

• Create Standardized Listing Templates: Ensure every rental listing includes required City of Portland disclosures, screening criteria, accessibility status, and the 72-hour notice window.

• Document Every Step: Maintain timestamped records of all incoming applications, screening reports, and communication logs.

• Update Move-In/Move-Out Checklists: Use comprehensive, photographic move-in inspection reports and align your deposit accounting with Portland’s depreciation schedule.

• Consult Legal Resources: Regularly review City of Portland Housing Bureau guidance and consult a qualified Oregon landlord-tenant attorney to ensure your leasing documentation stays up to date.

While Portland’s FAIR ordinance presents operational challenges for landlords, understanding its mechanisms transforms compliance from a source of friction into standard operational practice. By establishing transparent, documented, and objective screening procedures, rental property owners can protect their investments while fostering a fair, professional relationship with the Portland renting community.

Don’t waste time managing or doing rental property repairs yourself. Learn more about the local property management services that we can offer you by calling us at (503) 646-9664 – Talk to a Live Person – Our office answers the phone 9 AM to 5 PM Monday through Friday – or click here to connect with us online.