Washington rent control caps rent hikes for 2027 at 10 percent.
By Aaron Kirk Douglas
The Washington State Department of Commerce announced July 15 that landlords may raise rents by up to 10% in 2027, the maximum allowed under the 2025 law limiting increases to 7% plus inflation.
The 2026 cap is 9.7%. Seattle-area inflation reached 4.5% in June. The limits exempt rentals built in the last 12 years, subsidized affordable housing, and certain properties where the owner lives on-site, and they do not apply between tenancies.
Manufactured housing rent increases are capped at 5% regardless of inflation. Renters must first request a written correction from the landlord before filing a complaint with the attorney general. The state collected no penalties in the law’s first year, though the attorney general settled some cases according to reports.
The 12-year new construction exemption remains the single most valuable feature for developers.
Rent-cap compliance is now a core operating requirement in Washington. Owners need reliable systems for notices, rent-increase calculations, exemptions, documentation, and tenant communication. Buyers need to understand how quickly loss-to-lease can actually be captured under the law.
The cap affects revenue assumptions for investors even when the allowed increase is relatively high. The new-construction exemption matters for developers, but so does the long-term policy environment.
In the first year of the new rental law, the state did not collect any penalties from landlords who violated the law, the Washington State Standard reported this spring. The Washington state attorney general did settle some cases, but landlords avoided penalties if they canceled illegal rent increases or issued refunds.
There is also confusion among some manufactured-home and RV community operators about how the law applies, as well as legal challenges from manufactured-home community owners.
About the author:
HFO Research (Aaron Kirk Douglas) from HFO Investment Real Estate’s Multifamily Marketwatch YouTube podcast, hosted by partner Greg Frick. Aaron Kirk Douglas is director of market intelligence for HFO Investment Real Estate In Portland.
