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.

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How Landager Helps

Managing Washington properties requires precision, especially with Seattle's strict security deposit caps and the statewide 30-day return deadline. Landager automates the mandatory move-in checklist process, tracks the 14-day "pay or vacate" notices, and ensures rent increases are delivered with the required 90-day notice. From managing installment payment requests to staying compliant with Just Cause eviction requirements, Landager helps you navigate the complex RCW 59.18 landscape.