Security Deposit Interest in Oregon: No State Requirement (2026)
Oregon does not require landlords to pay interest on security deposits (ORS 90.300); in Portland, interest is owed to the tenant only if the land… Calculator, statute citation, Last Verified date o
Quick answer
No — Oregon law does not require landlords to pay interest on security deposits. Oregon does not require landlords to pay interest on security deposits (ORS 90.300); in Portland, interest is owed to the tenant only if the landlord voluntarily places the deposit in an interest-bearing account, paid in full at return minus an optional 5% administrative deduction. The rule comes from ORS 90.300 (Security deposits; prepaid rent); Portland City Code PCC 30.01.087. State statute (official text) · 2026-10-28
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What Oregon law does — and does not — require
Oregon has no statewide statute requiring interest on security deposits. Oregon does not require landlords to pay interest on security deposits (ORS 90.300); in Portland, interest is owed to the tenant only if the landlord voluntarily places the deposit in an interest-bearing account, paid in full at return minus an optional 5% administrative deduction.
The statute that governs deposits in Oregon, ORS 90.300 (Security deposits; prepaid rent); Portland City Code PCC 30.01.087, covers how and when the deposit itself must be returned — it simply does not mandate interest on top.
How interest must be paid
Interest accrues as N/a statewide. Portland interest-bearing-account case: interest accrues for the tenant's benefit and is returned with the unused security deposit. Portland (interest-bearing account case): interest must be returned to the tenant with the unused security deposit at termination; landlord may keep an optional 5% of interest for administrative costs; receipt of account/interest available at tenant's request (max once per year).
Who the law applies to
All residential rentals statewide (no interest required). Portland: pass-through obligation triggered only when the landlord places the deposit in an interest-bearing account; deposits must be held in a segregated account.
Cities in Oregon that require interest
Portland PCC 30.01.087 (verified full text on portland.gov): deposit funds must go into a secure financial institution account segregated from landlord's personal/business accounts; if interest-bearing, interest accrues proportionately to the tenant and must be returned with the deposit, minus optional 5% admin deduction. No Oregon city mandates interest payment outright.
States that do require deposit interest
Oregon has no statewide requirement. If you are moving or own rentals across state lines, these states do — each rate is the statutory value verified on the state page:
| State | Statutory rate |
|---|---|
| Massachusetts | 5% per annum, or the lesser amount of interest actually received from |
| Ohio | 5% per annum |
| Maryland | greater of 1.5%/year or U.S. Treasury 1-year yield curve rate (leases |
| Minnesota | 1% per annum |
| New York | Interest actually accrued/paid on the deposit in the interest-bearing |
The statute behind it
| Field | Value | | --- | --- | --- | | Citation | ORS 90.300 (Security deposits; prepaid rent); Portland City Code PCC 30.01.087 | | Official text | oregon.public.law | | Last verified | 2026-10-28 |
Cross-checked against: OregonLaws (oregon.public.law) — ORS 90.300 full text, professional statutory reprint (official legislature page unreachable this session).
Statutes get amended. If you are relying on this page — for a move-out, a dispute, or a lease draft — click through to the official text and confirm the current wording.
FAQ
Does Oregon require landlords to pay interest on security deposits?
No. Oregon law does not mandate interest; whatever the lease says governs. Portland PCC 30.01.087 (verified full text on portland.gov): deposit funds must go into a secure financial institution account segregated from landlord's personal/business accounts; if interest-bearing, interest accrues proportionately to the tenant and must be returned with the deposit, minus optional 5% admin deduction. No Oregon city mandates interest payment outright.
How is deposit interest calculated in Oregon?
Portland PCC 30.01.087: if the account is interest-bearing, all interest accrues proportionately to the benefit of the tenant; no mandated rate otherwise. The calculator at the top of this page reflects Oregon's rules where a numeric value exists.
When do I get the interest?
Portland (interest-bearing account case): interest must be returned to the tenant with the unused security deposit at termination; landlord may keep an optional 5% of interest for administrative costs; receipt of account/interest available at tenant's request (max once per year).
Can my lease require the landlord to pay interest anyway?
Yes — a lease can always give you more than state law requires, never less. If your Oregon lease promises interest, that promise is enforceable as a contract even though no statute mandates it.
Independent second source · 2026-10-28Related guides
- All states: security deposit interest by state · rent increase rules by state
- Tools: deposit interest calculator · rent increase calculator
- Neighboring states: Alaska · California
- Also moving? Read Oregon rent increase rules.
This page is information, not legal advice — see the full disclaimer.