On October 20, the San Francisco Board of Supervisors voted unanimously to approve Supervisor Jackie Fielder's ordinance setting a minimum amount of unpaid rent before a landlord can evict for nonpayment, as reported by the San Francisco Chronicle. Mayor Daniel Lurie has said he supports it.
Here is what it does, why it may not last, and what apartment owners should do now.
What the ordinance does
A landlord can no longer pursue an eviction for nonpayment unless the tenant owes more than one month of fair market rent, as set each year by the U.S. Department of Housing and Urban Development. For 2026 in San Francisco, that works out to:
- Studio: $2,485
- One bedroom: $2,977
- Two bedroom: $3,604
The threshold is based on HUD's figure for the unit size, not the tenant's actual rent. On a rent controlled unit renting well below market, a tenant could fall more than a month behind on their own rent and still be under the threshold.
The unpaid rent does not go away. It is still owed and can still be collected. What changes is that nonpayment below the threshold is no longer grounds for eviction.
Los Angeles, Oakland and Berkeley already have similar rules.
The catch: the Los Angeles case
Los Angeles passed a nearly identical threshold in 2023. The Apartment Association of Greater Los Angeles sued, arguing that state eviction law controls this area and cities cannot add their own limits. A state Court of Appeal upheld the Los Angeles ordinance, and on August 27, 2026, the California Supreme Court agreed to review the case.
The question in front of the court is narrow: whether state eviction law preempts a local minimum on unpaid rent. A ruling against Los Angeles would almost certainly put San Francisco's ordinance, and the ones in Oakland and Berkeley, in doubt. Landlord groups asked the Board to wait for that ruling. The Board went ahead anyway.
What it means for apartment owners
Collections take more discipline. With a higher bar before eviction is an option, small balances can build. Track every payment, communicate early when a tenant falls behind, and offer a written payment plan before the balance gets close to the threshold.
Apply payments carefully. Disputes often start with simple bookkeeping, such as a rent credit or a payment applied to utilities instead of rent. Keep rent, utilities and other charges clearly separated on the ledger, and document every credit.
Underwrite a little more credit loss. Buyers already account for rent control and turnover limits in San Francisco. Expect them to look harder at delinquency on the rent roll and to price in a slightly higher collection loss.
Watch the Supreme Court. If the court rules that state law preempts these local thresholds, the rules could change again quickly. This post will be updated when the decision comes down.
For more on the rules owners deal with every day, see these four landlord tenant cheat sheets for Bay Area apartment owners.
Common questions
How much unpaid rent is needed to evict a tenant in San Francisco?
More than one month of HUD fair market rent for the unit size. For 2026 that is more than $2,485 for a studio, $2,977 for a one bedroom and $3,604 for a two bedroom.
Does the tenant still owe the rent?
Yes. The ordinance limits eviction, not the debt. Unpaid rent below the threshold is still owed and can still be collected.
Does this apply to rent controlled buildings?
The threshold is tied to HUD's fair market rent, not the unit's actual rent, so it can matter most in rent controlled buildings where rents sit well below market. Talk to a landlord tenant attorney about how it applies to a specific unit.
Could the California Supreme Court overturn it?
Possibly. The court is reviewing whether state eviction law preempts the nearly identical Los Angeles rule. A ruling against Los Angeles would likely affect San Francisco, Oakland and Berkeley as well.
Thinking about selling?
Rules like this one change the math on what a building is worth and how buyers underwrite it. If you own an apartment building in San Francisco and want to know where it stands today, Philip Batlin can prepare a free, confidential opinion of value based on your rent roll, expenses and recent comparable sales. Request a free, confidential opinion of value, call Philip at (415) 625 2189, or see recent San Francisco apartment sales.
Philip Batlin, Managing Director Investments, Marcus & Millichap. CA DRE 01873218. This post is general information, not legal advice. Talk to a landlord tenant attorney before serving any notice.
