Washington's Rent Cap Explained: What Renters and Landlords Need to Know
By Kim Reidy | Senior Broker & Director of Relocation, Pointe3 Real Estate
In May 2025, Washington Governor Bob Ferguson signed House Bill 1217 into law, making Washington the third state in the country to enact statewide residential rent stabilization. It took effect immediately and applies across Washington state, including Seattle.
If you're a renter or a landlord in Washington, here's what the law actually says.
The Basic Rule
Landlords may not raise rent during the first 12 months of a tenancy. After that, rent can only be increased once every 12 months, and the increase is capped at the lower of two numbers: 7% plus the Seattle-area Consumer Price Index (CPI), or 10%, whichever is less.
The Washington Department of Commerce calculates and publishes the maximum allowable increase each year. For 2026, the cap is 9.683%, based on a CPI of 2.683%.
That number will change year to year as inflation changes. The cap is set to remain in effect until July 1, 2040.
Notice Requirements
Before any rent increase can take effect, landlords are required to give tenants at least 90 days written notice. This is an increase from the prior requirement of 60 days. Seattle's own local rules may require even longer notice, so landlords in the city should confirm what applies to their specific situation.
The notice must use standardized language prescribed by the Department of Commerce. It's not enough to send a letter. The form and the content both matter.
Lease Type Parity
HB 1217 also requires rental parity between lease types. A landlord cannot charge significantly more for a month-to-month lease than for a fixed-term lease on the same unit. The allowable difference is no more than 5%. This closes a loophole that allowed landlords to effectively pressure tenants off fixed-term leases by making month-to-month significantly more expensive.
Exemptions
Not all rental properties are subject to the cap. The key exemptions are:
New construction. Units with a certificate of occupancy issued within the last 12 years are exempt. This means a building completed in 2020 won't be subject to the cap until 2032. The exemption is designed to avoid discouraging new housing development.
Subsidized housing. Government-subsidized units where rent is calculated based on tenant income are exempt.
Nonprofit housing. Certain nonprofit-operated affordable housing units are exempt.
Manufactured and mobile homes. These fall under separate legislation with a lower cap of 5% annually.
One important note: the 90-day notice requirement applies to all landlords regardless of exemption status. Even if your property is exempt from the cap itself, you still need to provide proper notice before any increase.
What Happens If a Landlord Violates the Cap?
If a landlord issues a rent increase that exceeds the legal limit, tenants have real options. They can provide written notice to the landlord demanding the increase be reduced to a compliant amount. If the landlord doesn't comply, tenants may terminate the rental agreement with at least 20 days written notice and without incurring lease break penalties.
The Washington Attorney General is authorized to enforce the law under the Consumer Protection Act and can recover up to $7,500 per violation. Tenants also have the right to pursue damages directly, including up to three months' rent and attorneys' fees.
What This Means for Renters
If you're renting in Washington, you now have meaningful protection against sudden large rent increases. Your landlord cannot raise your rent during your first year of tenancy, cannot raise it more than once every 12 months after that, and must give you at least 90 days notice before any increase takes effect.
If you receive a notice that exceeds the cap, you don't have to simply accept it. The law gives you a path to challenge it and, if necessary, exit your lease without penalty.
One thing worth checking: whether your rental is exempt due to new construction. If you're renting in a building completed in the last 12 years, the cap may not apply to your unit.
What This Means for Landlords
The law creates new compliance obligations that are worth taking seriously. The Attorney General has been actively enforcing since the law took effect in May 2025, with multiple violations cited in the first months of enforcement.
Key obligations: no increases in the first 12 months of a tenancy, increases capped at the published annual limit after that, 90 days notice using the correct standardized form, and rental parity between lease types within 5%.
If you're unsure whether your property is exempt or how to calculate a compliant increase, consulting with a property attorney or a qualified property management company before issuing any notice is worth the time.
The Bottom Line
Washington's rent cap is a significant shift in how the rental market operates in this state. It protects renters from sudden, large increases while still allowing landlords to adjust rents in line with inflation. Understanding the rules on both sides of the relationship matters.
For questions about how this law affects your specific rental situation, reaching out to a qualified attorney or the Washington Attorney General's office is the right move. For questions about finding or listing a rental in Seattle's current market, reach out at KimReidy.com.
About Kim Reidy
Kim Reidy is a Senior Broker and Director of Relocation at Pointe3 Real Estate in Seattle who has been helping corporate transferees and individuals find the right neighborhood since 2010. A Certified Negotiation Expert (CNE) and Certified Buyer Agent Expert (CBAE), she's known as Seattle's "neighborhood whisperer."
Pointe3 Real Estate · (206) 237-6391
Equal Housing Opportunity. Kim Reidy is licensed in Washington State, regulated by the Washington State Department of Licensing. This article is general information only and is not legal advice. Rent stabilization rules, annual caps, and exemptions change; confirm current requirements with the Washington State Department of Commerce or a qualified attorney before acting on them. Property search powered by RealScout pulling live MLS data; all information should be independently reviewed and verified for accuracy. Data provided for personal non-commercial use only.
