Washington Rent Increase Cap 2027: What Landlords Need to Know

Washington became a statewide rent stabilization state in May 2025, and 2027 is the second full calendar year under the law. Headlines have already reported a 10 percent cap for 2027. That figure is right, but the reason behind it, and the rules wrapped around it, matter just as much as the number for a landlord planning next year's increases.

This guide explains the 2027 cap and how the Department of Commerce arrived at it, which rentals are exempt, the 12-month rules, the 90-day notice and its required form, the separate limit for manufactured and mobile home lots, and what a renter or the Attorney General can recover if an increase goes over. Find related guides in our compliance and legal hub.

Note: This article is general education, not legal advice. Washington's rent stabilization law is new, Commerce and the courts are still filling in details, and some cities have their own rules, so consult a local attorney before you send a notice or rely on an exemption.

Washington's 2027 rent increase cap is 10 percent

The maximum annual rent increase in Washington for 2027 is 10 percent, according to the Department of Commerce, which lists it for the period January 1 through December 31, 2027. It applies to residential tenancies under the Residential Landlord-Tenant Act, chapter 59.18 RCW, unless an exemption applies.

The formula actually produced a higher number, about 11.53 percent, so the 10 percent ceiling in RCW 59.18.700 is what controls. For comparison, Commerce set the 2026 cap at 9.683 percent, which was below the ceiling.

The cap limits how far rent can rise, not how far it should. For help picking a number inside the limit, see our guide to calculating a rent increase at renewal.

How Commerce calculates the number

Under RCW 59.18.700, the cap is 7 percent plus the Consumer Price Index change, or 10 percent, whichever is less. Commerce uses the June 12-month change in the CPI for All Urban Consumers, Seattle-Tacoma-Bellevue, all items, not seasonally adjusted.

Commerce shows its 2027 inputs on its landlord resource center page:

1. June 2025 index: 364.344. June 2026 index: 380.849.
2. Change: 380.849 divided by 364.344, minus 1, is about 4.53 percent.
3. Add 7 percentage points: about 11.53 percent.
4. Compare with the ceiling: 11.53 is more than 10, so the cap is 10 percent.

Commerce says it publishes the figure shortly after the June CPI data comes out, typically in early July. Because Seattle-area inflation, not national inflation, drives the formula, the Washington number can differ from neighboring states even when both land at 10 percent, as Oregon also did for 2027.

The 12-month rules: no increase in year one, one cap per rolling year

A Washington landlord may not raise rent during the first 12 months of a tenancy, and after that may not raise it by more than the cap in any 12-month period. Both limits come from RCW 59.18.700 and apply to month-to-month and fixed-term tenancies alike, unless an exemption under RCW 59.18.710 applies.

The second rule is a rolling window, not a once-a-year allowance. Two smaller increases inside the same 12 months count together, so a 6 percent increase in March and a 5 percent increase in December would total more than the 2027 cap.

The cap follows the tenancy, not the unit. Once a renter moves out and the tenancy ends, RCW 59.18.700 lets the landlord set rent for the next tenancy at any amount. The new tenancy then starts its own first 12 months with no increase allowed.

Which rentals are exempt

RCW 59.18.710 exempts newer buildings, publicly owned and nonprofit regulated housing, certain low-income developments, and some owner-occupied rentals. The details below come from the codified text of RCW 59.18.710.

The three owner-occupied exemptions do not apply when the owner is a real estate investment trust, a corporation, or an LLC with at least one corporate member. If you claim any exemption, the notice must identify it and include facts supporting it. The newer construction window also rolls: a building that is exempt for a notice given this spring may not be exempt for a notice given next year.

The 90-day notice and what it must contain

Most Washington rent increases require at least 90 days of written notice under RCW 59.18.140, on a form substantially the same as the one written into RCW 59.18.720, served by a method allowed under RCW 59.12.040. A subsidized tenancy where rent is based on the renter's income or the household's circumstances needs 30 days of notice instead.

RCW 59.18.140 also says an increase may not take effect before the current rental agreement's term is complete, so a fixed-term lease keeps its rent until the term ends. The statutory form does not apply to income-based subsidized tenancies, but RCW 59.18.720 says a tenancy paid partly with a portable voucher does not count as subsidized for this purpose, so those renters get the form.

The 2025 law changed RCW 59.18.140 from 60 days to 90 days and added the required form. The form treats rent as including all recurring and periodic charges in the rental agreement, and it asks you to fill in:

• The date the increase takes effect.
• The total increase as a percentage and as an additional dollar amount per month.
• The new total monthly amount for rent and other recurring or periodic charges.
• Whether the increase is lower than the maximum, the maximum, or authorized by an exemption.
• If an exemption is claimed, which one, with supporting facts or documents.

Commerce links rent increase notice forms from its HB 1217 landlord resource center. A general template is a useful starting point for tone, and our guide on how to write a rent increase notice covers that, but in Washington the statutory form controls what the notice must include. Keep a copy of every notice and proof of how and when it was served, a habit covered in our documentation best practices for landlords.

Month-to-month versus fixed-term pricing: the 5 percent rule

Washington also limits how differently you can price leases of different lengths for the same unit. Under RCW 59.18.700, rent for a unit may not differ by more than 5 percent based on lease type, and that difference cannot push rent above the cap.

Payment terms and other material conditions cannot be made more burdensome for month-to-month renters than for fixed-term renters, or the other way around. If you charge a premium for month-to-month flexibility, check that it stays within 5 percent. Our comparison of month-to-month and annual leases covers the other tradeoffs.

Worked example: a Spokane fourplex in 2027

The figures below are illustrative. An investor owns a fourplex in Spokane through a personal LLC with no corporate members, does not live there, and the building's first certificate of occupancy dates to 1998, so no exemption applies.

The owner chooses 7 percent on Unit 2, a $120.75 increase to $1,845.75, because that renter has stayed three years and a turnover would likely cost more than the $51.75 a month left on the table.

Unit 3 rents for $1,600 and the owner is tempted by 14 percent, $224 more, to match nearby listings. That is $64 a month over the cap. Over a year the renter could recover $768 in excess rent, plus up to three months of the unlawful charges and attorney's fees, and the Attorney General could separately seek a civil penalty of up to $7,500 for each violation. The lawful path to market rent on Unit 3 is a turnover, when RCW 59.18.700 allows a reset.

Manufactured and mobile home lots: a separate 5 percent limit

Lot rent in manufactured and mobile home communities falls under chapter 59.20 RCW, and the 2025 law set a different limit there: no increase in the first 12 months, then no more than 5 percent in any 12-month period.

Exemptions for lots, in RCW 59.20.380, are narrower. They cover lots owned by public housing authorities, public development authorities and nonprofits with regulated rents, and qualified low-income developments those organizations own. The statute also allows a larger increase in the first 12 months after a qualified sale of the community to an eligible preservation organization if a majority of homeowners approve, and a one-time increase at the first renewal after a home sale transfers the rental agreement to the buyer, if the buyer was told about it before the transfer. Lot rent increases need at least three months of written notice under RCW 59.20.090, on the separate form in RCW 59.20.390. If an increase goes over the limit without an exemption, the renter can demand a cure and can end the tenancy before the increase takes effect with at least 30 days of written notice, and the renter or the Attorney General can sue, with civil penalties of up to $7,500 per violation.

What happens if an increase goes over the cap

A renter can demand a correction, leave before the increase takes effect, or sue, and the Attorney General can seek penalties of up to $7,500 per violation. These remedies come from RCW 59.18.700.

• Demand to cure: the renter first gives the landlord a written demand to reduce the increase to a lawful amount.
• Early termination: the renter may end the rental agreement at any time before the increase takes effect by giving at least 20 days of written notice, owing rent for the full month in which they move out, with no fees or fines for ending early.
• Lawsuit: a renter or the Attorney General can sue. A renter can recover excess rent, fees or costs paid, up to three months of the unlawful charges, and reasonable attorney's fees and costs.
• Civil penalties: the Attorney General can seek up to $7,500 for each violation without a prior demand to cure.
• No screening reports: a landlord may not report a renter to a tenant screening service for not paying the unlawful part of an increase.

Pressuring a renter who objects to an increase can also raise separate retaliation concerns, as our guide to landlord retaliation laws explains. For changes in other states next year, see new landlord laws taking effect in 2027.

Frequently asked questions

What is the Washington rent increase cap for 2027?

10 percent. The Department of Commerce calculated 7 percent plus the Seattle area CPI at about 11.53 percent, which is above the statutory ceiling, so the 10 percent cap applies to covered increases in 2027.

How much notice does a Washington landlord need to give for a rent increase?

At least 90 days of written notice for most residential tenancies, and 30 days for subsidized tenancies where rent is based on the renter's income. Most notices must use a form substantially the same as the one in RCW 59.18.720 and be served by a method allowed under RCW 59.12.040.

Can a landlord raise rent in the first 12 months of a tenancy in Washington?

No. RCW 59.18.700 bars rent increases during the first 12 months of a tenancy unless an exemption under RCW 59.18.710 applies.

Which rentals are exempt from Washington's rent cap?

Units whose first certificate of occupancy was issued 12 or fewer years before the notice, units owned by public housing authorities and qualifying nonprofits, certain regulated low-income and tax credit developments, and some owner-occupied rentals. The owner-occupied exemptions do not apply when the owner is a REIT, a corporation or an LLC with a corporate member.

Can a Washington landlord raise rent by any amount between tenants?

Yes. Under RCW 59.18.700, once a tenant vacates and the tenancy ends, the landlord may set rent for the next tenancy at any amount.

What to do next

Washington's cap turns every rent increase into a dated record: when the tenancy began, when rent last changed, what the notice said, how it was served and whether an exemption was claimed. A landlord with a few units can track that on paper. Across a portfolio, one missed 12-month window can mean refunds, damages and fees.

Shuk's Account and Lease Management tracks lease start and end dates, renewal status and each unit's rent and recurring charges, and the Rent Roll and Active Lease Overview reports export every unit's lease terms and rent to Excel or PDF. When a renewal lease carries the new rent, E-Lease and Document Signing sends it for unlimited e-signatures and records exactly when each document was signed and by whom. The Lease Indication Tool gathers renters' renewal intentions starting six months before lease end, ahead of the 90-day notice deadline.

At as low as $2 per unit per month, with no setup fees and no contract, and with White Glove Onboarding included at no additional cost, Shuk makes cap-compliant, well-documented rent increases feasible for landlords and property managers up to 300 units.

Book a demo at shukrentals.com/book-a-demo to see how Account and Lease Management, the Lease Indication Tool and E-Lease and Document Signing work together so every Washington rent increase is timed, documented and easy to defend.