Oregon could be the first state to impose mandatory rental control laws as housing costs rise.
The bill will be passed to the State House after being approved by the House Committee on Human Services and Housing on Wednesday, The Oregonian said.
The bill would ban annual rent increases of more than 7 percent plus inflation. It would also prohibit landlords from vacating tenants for no reason after 12 months' stay.
Democrats, including governor of the state, Kate Brown, support the bill.
"I am looking forward to signing the bill," she told reporters under the signing of the Associated Press, but Republicans wanted to introduce a clause to delay their entry into force by 2020.
Housing prices skyrocketed the West Coast, including Oregon, and contributed to high homelessness.