Oregon could become the first state to introduce compulsory leasing control laws because it faces higher housing costs.
The bill is headed on the floor of the House of Buildings after it was approved by the Chamber's Committee on Social Services and Housing on Wednesday, reports The Oregonian.
The bill prohibits an annual increase in rent of more than 7 percent plus inflation. This would also prohibit landlords from evicting tenants without reason after 12 months of residence.
Democrats, including Governor Kate Brown, supported the bill.
"I'm looking forward to signing the bill," she told reporters, according to Associated Press.
The bill will become law if Brown but the Republicans wanted to make a reservation to delay it from coming into force by 2020.
The rapid rise in house prices tormented the West Coast, including Oregon, and contributed to high levels of homelessness.