Washington’s 2027 Rent Increase Cap Is 10% (HB 1217)

ByWashington Landlords

Washington Landlords is a free resource from VerraTerra Property Management. VerraTerra is a property management company, not a law firm, and we are not lawyers.

Last reviewed: October 9, 2026

Washington limits how much most landlords can raise rent in a 12-month period. For increases in calendar year 2027, the state’s published maximum is 10%.

What “covered” means. In this guide, a “covered” rental is one the cap applies to: most Washington residential rentals under the Residential Landlord-Tenant Act. A rental is not covered only if one of the exemptions in RCW 59.18.710 applies, for example a unit whose first certificate of occupancy was issued 12 or fewer years before the rent increase notice, certain public, nonprofit, or tax-credit housing, or certain owner-occupied homes (never when the owner is a corporation, a REIT, or an LLC with a corporate member). The full list is in the Exemptions section below. Manufactured and mobile home lots have their own 5% cap.

This guide covers the amount and timing of the cap: how the number is set, when you can raise rent, what counts as rent, who is exempt, and what an over-the-cap increase can cost you. These rules are statewide. Local ordinances can add requirements on top of state law (for example, some cities require longer notice), so check your city’s rules too. Seattle’s rules are covered in a separate guide.

What HB 1217 does

HB 1217 created a statewide limit on rent increases. It covers tenancies under the Residential Landlord-Tenant Act and the Manufactured/Mobile Home Landlord-Tenant Act.

The bill was signed on May 7, 2025, and took effect the same day. It was enacted as EHB 1217, chapter 209, Laws of 2025.

The residential rules sit in RCW 59.18.700 through 59.18.730. The manufactured and mobile home lot rules sit in RCW 59.20.370 through 59.20.390. The residential cap, exemption, and notice-form sections (RCW 59.18.700–.720) are set to expire on July 1, 2040.

The 2027 cap: 10%

For rent increases between January 1, 2027 and December 31, 2027, the Washington State Department of Commerce has published a maximum of 10%.

The formula is 7% plus CPI, or 10%, whichever is less, in any 12-month period. “CPI” here means 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 Bureau of Labor Statistics.

For 2027, the formula came to 11.53%. Because that is above the 10% ceiling, the ceiling applies.

Commerce calculates the figure each year for the following calendar year and posts it on its HB 1217 Landlord Resource Center page. Check that page before every increase, because the number can change from year to year.

For reference, the 2026 figure was 9.683%, and the Attorney General’s Office states the limit through December 31, 2025 was 10%.

Which year’s cap applies? The one in effect when the increase takes effect. The cap that applies is the one for the calendar year in which the increase becomes effective, not the year the notice is delivered. A notice sent in October, November, or December 2026 for an increase that takes effect in 2027 follows the 2027 cap of 10%. An increase that takes effect on or before December 31, 2026 is limited to the 2026 figure of 9.683%. This matches how Commerce frames each figure (the maximum increase allowed “between” January 1 and December 31 of that year) and how the Attorney General’s FAQ treated the law’s start date: increases that took effect after May 7, 2025 were covered even if the notice went out earlier. The Rental Housing Association of Washington, a landlord trade association (not a government source), states it directly: “The applicable percentage is determined by when the rent increase becomes effective—not when the notice is delivered.”

How the cap is calculated

The formula. Under RCW 59.18.700(1)(a)(ii), after the first 12 months a landlord may not raise rent “during any 12-month period of the tenancy, in an amount greater than seven percent plus the consumer price index, or 10 percent, whichever is less.” The statute defines the consumer price index as “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” (RCW 59.18.700(1)(c)).

One Seattle-area figure, applied statewide. The statute names only the Seattle-area index, so the same figure sets the cap for covered rentals everywhere in Washington: Spokane, Yakima, Vancouver, and the Tri-Cities included. There is no separate regional number.

The exact data series. The Department of Commerce uses this Bureau of Labor Statistics series:

  • Consumer Price Index for All Urban Consumers (CPI-U), All items in Seattle-Tacoma-Bellevue, WA
  • Not seasonally adjusted; base period 1982-84=100
  • Series ID: CUURS49DSA0 (series data; BLS Seattle-area CPI page)

The math. Cap = the lesser of [((June index this year − June index last year) ÷ June index last year) + 7%] or 10%.

Cap year (increases taking effect Jan 1–Dec 31)Older June indexNewer June indexJune 12-month CPI change+ 7%Cap
2026June 2024: 354.824June 2025: 364.344(364.344 − 354.824) ÷ 354.824 = 2.683%9.683%9.683% (under 10%)
2027June 2025: 364.344June 2026: 380.849(380.849 − 364.344) ÷ 364.344 = 4.530%11.530%10% (the 10% ceiling applies)

Sources: the index values and published caps come from the Commerce HB 1217 Landlord Resource Center.

When the number comes out. Commerce must calculate the figure “beginning June 1, 2025, and annually thereafter” for “the following calendar year” and publish it on its website and in a press release (RCW 59.18.700(1)(c)). Commerce says each year’s figure “will be published shortly after release of the June data by the federal U.S. Bureau of Labor Statistics, which is typically in early July.”

Which year’s figure to use. Use the cap in effect on the date the increase takes effect, not the date the notice is delivered (see “Which year’s cap applies?” above).

How to check next year’s number yourself

  1. In mid-July, open the Commerce HB 1217 Landlord Resource Center and look for the new year’s “Maximum annual rent increase.” This published figure is the one to rely on.
  2. To preview it, open BLS series CUURS49DSA0 and note the June values for this year and last year.
  3. Calculate (new − old) ÷ old, then add 7%.
  4. If the result is 10% or more, the cap is 10%. Otherwise the cap is the result.
  5. Apply it only to increases that take effect in the following calendar year. If your own figure differs from Commerce’s, use Commerce’s published figure.

Timing limits: the first 12 months and the 12-month window

You cannot raise rent by any amount during the first 12 months after a tenancy begins. This applies to month-to-month and fixed-term tenancies alike.

After the first 12 months, the cap limits the total increase during any 12-month period. The state’s required notice form describes this as “once every 12 months.”

The cap does not follow the unit between tenants. Once a tenant vacates and the tenancy ends, rent may be set at any amount for the next tenancy.

On notice, most residential tenancies now require at least 90 days’ prior written notice of any rent increase (30 days for subsidized tenancies where rent is based on the tenant’s income), and an increase cannot take effect before the end of a fixed-term lease. Notice mechanics are covered in next week’s guide.

What counts as “rent”: fees, utilities, and concessions

The cap limits increases in “rent” (RCW 59.18.700(1)(a)), and the law defines it: “‘Rent’ or ‘rental amount’ means recurring and periodic charges identified in the rental agreement for the use and occupancy of the premises, which may include charges for utilities.” One-time charges such as late fees, damages, deposits, and legal costs are not rent (RCW 59.18.030(32)).

The state’s required notice form says the same thing, telling tenants the landlord can raise “your rent and any other recurring or periodic charges identified in the rental agreement” by up to the cap (RCW 59.18.720(1)). The statute does not list specific charges by name. The Rental Housing Association of Washington, a landlord trade association (not a government source), says recurring parking, storage, and utility charges count toward the increase. If a recurring charge is in the lease, the safest approach is to include it when you calculate the cap.

Nonrecurring charges are not rent. Late fees, damages, deposits, and legal costs fall in this group. The one exception: if the landlord set up an installment payment plan at move-in for nonrefundable fees or deposits and the tenant defaults, the missed installments can be treated as rent owing.

Concessions. The statute does not address move-in specials or other concessions. The Attorney General’s landlord FAQ says the effect depends on the facts. It warns against advertising a low rent while writing a higher one into the lease, and it calls using the lowest rental rate as the base the “most conservative approach.” This is agency guidance, not statute.

Lease-type parity. Rent for a given unit can differ by no more than 5% between lease types, such as month-to-month and fixed-term. That difference cannot push rent above the cap. The Attorney General’s FAQ says the exemptions below do not cover this parity rule.

Exemptions

The cap does not apply to the residential tenancies listed in RCW 59.18.710(1). A landlord may go above the cap “only as authorized by the exemptions described in this section” (RCW 59.18.710(1)). There are seven:

New construction (RCW 59.18.710(1)(a)). The first certificate of occupancy for the unit was issued “12 or less years before the date of the notice of the rent increase.” The clock runs from the certificate of occupancy, not the year built, and is measured on the date of the notice. Once the unit passes 12 years, the cap applies.

Public, nonprofit, and affordable housing (RCW 59.18.710(1)(b)–(d)).

  • Units owned by a public housing authority or a public development authority ((1)(b)(i)–(ii)).
  • Units owned by a nonprofit organization “where maximum rents are regulated by other laws or local, state, or federal affordable housing program requirements” ((1)(b)(iii)).
  • Units owned by a nonprofit entity as defined in RCW 84.36.560, where a nonprofit, housing authority, or public development authority has majority decision-making power for the general partner and rents are regulated the same way ((1)(b)(iv)).
  • A qualified low-income housing development (as defined in RCW 82.45.010) owned by any of those organizations ((1)(c)).
  • A qualified low-income housing development allocated federal low-income housing tax credits by the Washington State Housing Finance Commission, “so long as there is an enforceable regulatory agreement” with the Commission ((1)(d)).

Owner-occupied situations (RCW 59.18.710(1)(e)–(g)). There are three:

  • The tenant “shares a bathroom or kitchen facility with the owner who maintains a principal residence at the residential real property” ((1)(e)).
  • A “single-family owner-occupied residence,” including one where the owner-occupant rents “no more than two units or bedrooms,” such as an attached or detached accessory dwelling unit ((1)(f)).
  • A duplex, triplex, or fourplex where the owner lived in one of the units as a principal residence “at the beginning of the tenancy, so long as the owner continues the occupancy” ((1)(g)). If the owner moves out, the exemption ends. An owner who moves in partway through an existing tenancy does not qualify for that tenancy.

None of the three owner-occupied exemptions applies if the owner is a real estate investment trust, a corporation, or “a limited liability company in which at least one member is a corporation” (RCW 59.18.710(2)). Check how your property is titled before assuming you qualify.

What is not an exemption. The list above is the complete list. A tenant paying with a housing voucher (such as Section 8) does not by itself make a unit exempt. Income-based subsidized tenancies do get a shorter 30-day notice period and are excused from the state notice form (RCW 59.18.140(3)(b); RCW 59.18.720(2)), but neither rule exempts them from the cap. The Attorney General’s FAQ also notes the exemptions cover only the rent increase limit, “not to parity or other requirements.” The residential exemptions expire with the cap on July 1, 2040 (RCW 59.18.710(3)).

Claiming an exemption requires stating the supporting facts in the written notice. Next week’s guide covers how.

Manufactured and mobile home lots

Lot rent has its own cap, a flat 5% in any 12-month period. It is not tied to CPI. The no-increase rule for the first 12 months also applies.

Lot-specific exemptions (RCW 59.20.380) are:

  • Lots owned by a public housing authority, a public development authority, or a nonprofit whose maximum rents are regulated by other laws or affordable housing program requirements (and certain qualified low-income developments those organizations own) (RCW 59.20.380(1)).
  • The first 12 months after a qualified sale of the community to an eligible preservation organization, for increases needed to cover the purchase cost, if a majority of homeowners approve (RCW 59.20.380(2)).
  • A one-time increase at the first renewal after a home sale transfer, if the buyer was told about it in advance (RCW 59.20.380(3)).

The lot cap also cross-references a separate rule that allows certain lease escalation clauses (a pro rata share of park property-tax or utility increases, and set annual increases in leases longer than two years). How those clauses interact with the 5% cap is not spelled out.

Unlike the residential sections, the lot rent cap sections as currently written contain no expiration date. The main lot cap section was amended in 2026, so read the current text.

HB 1217 also changed other lot rules, including move-in fee and deposit caps and late-fee limits. See RCW chapter 59.20.

Worked example

Illustrative numbers only.

Current monthly rent is $2,000, and the tenancy is past its first 12 months. At the 2027 figure of 10%, the maximum increase is $200.00, for a new total of $2,200.00.

Now add a fee. Base rent is $1,900 and the lease includes a $100 recurring parking charge. The combined base is $2,000, and the cap applies to the combined increase, not to base rent alone.

The statute does not specify a rounding rule. Rounding down is the cautious choice.

What happens if an increase exceeds the cap

The tenant must first give the landlord a written demand to reduce the increase. This gives the landlord a chance to fix it.

The tenant may also end the tenancy before the increase takes effect, on 20 days’ written notice (30 days for manufactured and mobile home lots). In that case the tenant owes rent for the full month in which they move out and cannot be charged any fines or fees for ending the tenancy.

The tenant or the Attorney General may sue, not only over the cap itself but also over the exemption, notice-form, and notice-period rules. If a court finds a violation, it must award the tenant any excess rent, fees, or other costs paid, plus up to three months of the unlawful rent, fees, or costs charged, along with reasonable attorneys’ fees and costs.

The Attorney General may also seek civil penalties of up to $7,500 per violation, and does not need to wait for a cure demand.

A landlord may not report the unpaid unlawful portion of an increase to a tenant screening service.

Next week: Knowing the cap is half the job. Week 2 covers how Washington’s required rent-and-fee increase notice must be prepared and delivered.

Checklist

Rent Increase Cap Checklist (Washington, 2027)

  • Confirm the tenancy is past its first 12 months.
  • Confirm there has been no other increase in the past 12 months that would push the total over the cap.
  • Look up the current figure on the Commerce HB 1217 Landlord Resource Center page.
  • Use the cap for the year the increase takes effect, not the year you send the notice (2027 effective date = 10%; 2026 effective date = 9.683%).
  • Add up base rent plus every recurring charge in the lease to get the combined base.
  • Calculate the maximum increase on the combined base. Round down.
  • Check whether an exemption applies, and check how the property is titled.
  • If the unit had a concession, review the Attorney General’s FAQ on which rate to use as the base.
  • Compare month-to-month and fixed-term rents for the unit. Keep the difference within 5% and under the cap.
  • For manufactured or mobile home lots, use the 5% lot cap.
  • Check whether your city adds its own rules.
  • Give at least 90 days’ written notice (most residential tenancies), and make sure the increase does not take effect before a fixed term ends.

Common Mistakes

  • Applying the cap to base rent only. Recurring charges count toward the combined increase.
  • Raising rent in the first 12 months. No increase of any amount is allowed, regardless of lease type.
  • Using last year’s number. The figure is recalculated every year, so the 2026 figure does not carry over to 2027.
  • Assuming an owner-occupied exemption applies when the property is held in an entity. These exemptions are unavailable to a corporation, a real estate investment trust, or an LLC with at least one corporate member.
  • Charging a large premium for month-to-month terms. The rent difference between lease types is limited to 5% and cannot exceed the cap.
  • Reporting the disputed amount to a screening service. The unpaid unlawful portion of an increase cannot be reported.

FAQ

How much can I raise rent in Washington in 2027?

For most residential tenancies, up to 10% in any 12-month period, once the tenancy is past its first 12 months. Manufactured and mobile home lot rent is capped at 5%.

I am sending a notice in late 2026 for an increase that starts in 2027. Which cap applies?

The 2027 cap of 10%. What matters is the date the increase takes effect, not the date the notice is delivered. If the increase took effect in 2026 instead, the 2026 figure of 9.683% would apply.

Can I raise rent to any amount between tenants?

Yes. After a tenant vacates and the tenancy ends, rent may be adjusted by any amount. The first-12-months rule then applies to the new tenancy.

Do parking, storage, or utility charges count toward the cap?

Recurring and periodic charges in the rental agreement for use and occupancy count as rent, and that can include utilities (RCW 59.18.030(32); RCW 59.18.720(1)). The statute doesn’t name parking or storage specifically, but RHAWA (a landlord trade association) says they count, so include them when you calculate.

My building is newer. Am I exempt?

You are exempt if the first certificate of occupancy (not the year built) was issued 12 or fewer years before the date of your rent increase notice (RCW 59.18.710(1)(a)). The exemption ends once the building passes that mark, and you must state the supporting facts in the notice.

What if I accidentally go over the cap?

The tenant must first send a written demand to reduce the increase, which gives you a chance to correct it. The Attorney General does not have to wait for that demand and may seek civil penalties of up to $7,500 per violation.

Sources

Washington State Legislature

Washington State Department of Commerce

U.S. Bureau of Labor Statistics

Industry guidance (not an official source)

Washington State Attorney General

Disclaimer

Washington Landlords is a free resource from VerraTerra Property Management. VerraTerra is a property management company, not a law firm, and we are not lawyers.

This guide is general educational information about Washington law as of the “last reviewed” date below. Rent increase rules, exemptions, and annual figures can change, and local ordinances may add requirements. Confirm current figures with the Washington State Department of Commerce and the Revised Code of Washington.

Last reviewed: October 9, 2026. Figures checked against the Commerce HB 1217 Landlord Resource Center and RCW 59.18.700–.720 / 59.20.370–.390.

General information, not legal advice. Laws change, so check with an attorney for your situation.

Prefer to hand this off? VerraTerra Property Management handles rent increases and cap compliance for Washington landlords as part of full-service management. Learn more at verraterra.com.

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