OLYMPIA—Annual rent increase limit for residential properties is capped at 10% starting January 1, 2027, the Washington State Department of Commerce published Wednesday.
HB 1217 of the 2025 legislative session directed Commerce to calculate and publish an annual maximum allowable rent increase for residential properties. This bill limited rent and fee increases, requiring notice of rent and fee increases, limits fees and deposits, established a landlord resource center and associated services, authorized tenant lease termination, created parity between lease types, and provided for attorney general enforcement.
RCW 59.18.700 specifies that a landlord may not increase the rent for any type of tenancy during the first 12 months after the tenancy begins. After the first 12 months, a landlord may increase the rent during any 12-month period of the tenancy up to 7% plus the Consumer Price Index, or 10 percent, whichever is less. Certain properties and situations are exempted, as defined in RCW 59.18.710.
The maximum annual rent increase percentage is calculated using the June 12-month percent change in the Consumer Price Index for all urban consumers, all items, for the Seattle area as published by the United States Bureau of Labor Statistics.
For the 12-month period June 2025 through June 2026, the increase calculation equated to 11.53%. which exceeds the maximum allowable rental increase by law. Hence, the maximum annual rent increase percent through December 31, 2027, is capped at 10%. Therefore, rental units that are subject to the Residential Landlord Tenant Law (RCW 59.18) for calendar year 2027 are prohibited from any rent increases to their tenants greater than 10%.
Commerce created a Landlord Resource Center on its website to share information with landlords about available programs, associated services and resources at assist with rental caps, best practices, and reducing costs.
Author: Mario Lotmore
