New Report Finds Rent Control Shifts Millions in Property Taxes onto Portland Homeowners
Portland, Maine, September 23, 2025. An independent economic study released today by the Greater Portland Board of REALTORS® shows that Portland’s rent control ordinance, originally intended to stabilize housing costs, is shifting millions of dollars in property taxes onto single-family homeowners, creating an unexpected and costly burden for families.
The report, authored by Wallace Economic Advisers, estimates that rent control reduces the city’s taxable property base by 3.2%-5.4%, forcing a tax burden shift of $6.3-$10.6 million annually onto other property owners.
With property tax bills landing in Portland mailboxes this month, the findings shed light on one of the biggest drivers behind rising homeowner tax bills.
Key Findings
-
Tax Base Reduction: Rent restrictions lower Portland’s taxable property base by 3.2%-5.4% compared to a no-rent-control scenario.
-
Tax Burden Shift: Roughly 63% of the added tax burden falls on single-family and condominium owners.
-
Impact on Families: For the median Portland home ($605,000), this means an extra $224-$379 in FY2026 alone and $1,240-$2,100 more over five years.
-
Market Divergence: Since 2022, 3-4 unit buildings (largely under rent control) have seen values flatten or decline, while single-family and two-unit homes continued to appreciate.
Analysis
“This isn’t just about tenants and landlords - Portland’s rent control shifts millions in property taxes onto families,” said Aaron Chadbourne, President of the Greater Portland Board of REALTORS®. “For the average homeowner, that means hundreds more in property taxes every year, on top of city and school budget increases.”
“As property tax bills arrive in mailboxes this month, many homeowners are asking why their taxes went up so much. This study makes it clear: rent control is a major driver of these increases.”
The report’s author, Dr. Ryan Wallace, principal economist at Wallace Economic Advisers, emphasized the broader fiscal consequences:
“By capping rental income, rent control reduces the taxable value of many multi-unit properties,” Wallace said. “That tax responsibility doesn’t go away—it shifts onto Portland’s single-family households. Over five years, the average homeowner will pay $1,200-$2,100 more in property taxes because of this policy.”
Broader Impact
Because property taxes fund schools, social services, and public safety, the study warns that the fiscal impacts of rent control extend beyond homeowners.
“As Portland leaders consider the future of rent regulation, it’s important that both policymakers and residents weigh these hidden costs alongside the intended benefits for tenants,” Chadbourne added.
About the Study
The analysis, Evaluating the Impact of Rent Control on Property Tax Burdens in Portland, was prepared by Wallace Economic Advisers using standardized appraisal methods and publicly available data. It was commissioned by the Greater Portland Board of REALTORS® to assess the fiscal consequences of rent control during Portland’s 2025 revaluation.