Washington State Rent Increase Laws and HB 1217 Caps

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Always consult a licensed attorney in Washington state for advice specific to your situation. Information last verified: March 2026.

Washington state underwent a seismic shift in its rental landscape when House Bill 1217 (HB 1217) was signed into law, effective May 2025. For the first time in its history, Washington now has statewide rent stabilization caps that will remain in effect until July 1, 2040.

1. The Annual Rent Cap Formula

Under HB 1217, the maximum annual rent increase a landlord can impose is calculated as:

7% + CPI, or 10%, whichever is lower.

• CPI = The annual change in the Consumer Price Index for the Seattle-Tacoma-Bellevue area (or the relevant regional CPI), as published by the Bureau of Labor Statistics.
• The Washington Department of Commerce publishes the officially calculated maximum percentage each year.
• For 2026: The official rent cap has been calculated at 9.683%.

2. The 12-Month Restriction

• Landlords are prohibited from increasing rent during the first 12 months of a new tenancy.
• After the initial 12-month period, increases are limited to once every 12 months.

3. The 90-Day Notice Requirement

Effective immediately under HB 1217, landlords must provide a 90-day written notice to the tenant before any rent increase takes effect.

Delivery and Form Requirements

• The notice must be sent via certified mail.
• For increases effective on or after July 27, 2025, the notice must also be personally served, posted on the door, and mailed.
• Landlords are required to use a standardized statewide form for the rent increase notice, as prescribed by the Department of Commerce.

4. Exemptions

Not all rental properties are subject to HB 1217 rent caps:

• New Construction: Units with a certificate of occupancy issued within the last 12 years from the date of the proposed increase.
• Nonprofit Housing: Certain nonprofit-operated affordable housing units.
• Subsidized Housing: Government-subsidized housing where the rent is determined by a formula tied to the tenant's income.
• Manufactured Home Communities: Subject to a separate cap of 5% annually under different legislation.

5. Tenant Protections and Penalties

• If a landlord issues a rent increase that exceeds the legal cap, the tenant can terminate the lease without penalty by providing 20 days' notice.
• The Washington Attorney General has enforcement authority and can impose civil penalties of up to $7,500 per violation against landlords who knowingly violate the cap.

6. Local Ordinances

Several Washington cities had pre-existing rent increase protections that may be more restrictive than HB 1217:

• Seattle and Tacoma have additional local ordinances regarding notice periods and tenant relocation assistance triggered by large rent increases.
• Where local law is more protective than state law, the local ordinance prevails.

How Landager Helps Washington Landlords

Calculating the exact maximum allowable rent increase using the CPI formula, while simultaneously cross-referencing the 12-year new-construction exemption and tracking whether the 12-month initial tenancy grace period has expired, is a logistical nightmare across a multi-property portfolio. Landager automates WA HB 1217 compliance. The system ingests each property's certificate of occupancy date to instantly determine exemption eligibility. For non-exempt units, it automatically calculates the precise maximum increase using the published CPI data, generates the required standardized rent increase notice exactly 90 days before the effective date, and queues certified mail delivery—preventing the $7,500-per-violation penalty before it can ever materialize.

Back to Washington Residential Landlord-Tenant Laws Overview.