Washington's 2027 Rent Cap Is 10%: What Tenants and Small Landlords Should Know

Washington's maximum rent increase for 2027 is 10%, according to the state Department of Commerce. The cap applies from January 1 to December 31, 2027, to most covered rentals. It equals 7% plus local inflation or 10%, whichever is less, and no landlord may raise rent in a tenant's first 12 months.

Kenponet covers renting, owning and managing property for renters, buyers and small landlords. This explainer is for Washington tenants who have received a rent notice and for small landlords planning next year's rents. It covers the formula, the exemptions, the notice rules and what to do about an increase that breaks the law.

What is Washington's 2027 rent cap, and how is it set?

Washington's Department of Commerce set the 2027 rent cap at 10%. The law behind it, Engrossed House Bill 1217, limits annual increases to 7% plus the June 12-month change in the Seattle-area Consumer Price Index, or 10%, whichever is less. Commerce publishes the figure each year after federal inflation data arrives.

The 2027 math hit the ceiling. Commerce's Landlord Resource Center shows an unrounded result of 11.53%, which is above 10%, so the 10% limit applies. The cap for 2026 was 9.683%, so 2027 is slightly higher.

The number does not mean every tenant sees a 10% increase. It is a ceiling, not a target. Many landlords raise rent by less, and a tenant can still negotiate. Our guide on how to negotiate rent and concessions in 2026 covers practical ways to do that.

How does the 12-month rule work?

A landlord may not raise rent during the first 12 months of a tenancy. This is stated in RCW 59.18.700, and it applies to month-to-month and fixed-term tenancies alike. After that first year, increases must stay within the cap for any 12-month period.

Here is an example. A tenant who moved in on March 1, 2026, pays $1,800. The earliest lawful increase date is March 1, 2027. A 10% increase would bring the rent to $1,980, and a landlord cannot ask for more than $180 extra a month.

Once a tenant moves out and the tenancy ends, the landlord may set a new rent without the cap. That is why the cap protects current tenants, not the next one. A unit that turns over can reset to market rent.

Which rentals are exempt from the cap?

Exemptions are listed in RCW 59.18.710. Newer buildings are exempt when the first certificate of occupancy was issued 12 or fewer years before the rent-increase notice. Housing owned by public housing authorities or certain nonprofits is exempt, as are some tax-credit properties.

Small owner-occupied properties get a break too. The statute exempts owner-occupied single-family homes, including ones where the owner rents no more than two units or bedrooms, such as an accessory dwelling unit. It also exempts duplexes, triplexes and fourplexes where the owner lived in one unit when the tenancy began and continues to live there. A shared kitchen or bathroom with an owner who lives on site is exempt as well.

There is a catch. The last three owner-occupied exemptions do not apply if the owner is a real estate investment trust, a corporation or a limited liability company with at least one corporate member. A tenant renting from an LLC-owned duplex should check who really owns it.

If a landlord claims an exemption, the notice must state the facts that support it. A notice that simply declares an exemption without facts is a red flag. Tenants can ask for the missing details in writing.

What should a rent increase notice include?

A rent increase notice must follow RCW 59.18.700, RCW 59.18.720 and RCW 59.18.140, and be served under the state's notice rules. The statute does not set a single number of days for the landlord's notice, so check the lease and the cited sections. Any increase above the cap must state the facts for the claimed exemption.

Commerce offers a standard form, the Rent and Fee Increase Notice to Tenants. Small landlords can use it to avoid mistakes. Kenponet's editors recommend keeping a dated copy of every notice and proof of how it was delivered.

The cap applies to rent and to certain fees, so a new monthly fee can count as a hidden increase. A tenant who sees a new pet fee or parking charge should add it to the old rent before comparing to the cap. For a broader view of fees, see our explainer on 2027 rent increase caps in Canada, which shows how another jurisdiction handles the same question.

Does the cap also cover fees and lease renewals?

The cap applies to rent and to certain fees, and it applies at renewal as well as mid-lease. A landlord who offers a renewal at a higher rent must stay inside the limit for any 12-month period. Swapping a fixed-term lease for a month-to-month one does not reset the clock.

Fees deserve a close look. If a landlord adds a monthly charge for trash, parking or amenities, the tenant should treat it as part of the rent total. The safest approach is to add all recurring charges together, then compare the new total to the old one.

One-time charges such as a late fee or a deposit work differently, and the notice rules for them sit in other parts of the law. When in doubt, ask Commerce's program staff for general information, though they cannot interpret the law for you. A tenant lawyer or a legal aid group can.

How does Washington compare with other places?

Washington is one of a small group of states with a statewide limit on rent increases. Most states leave increases to the market and require only notice. Where limits exist, they tend to track inflation, as the Washington formula does with the Seattle-area index.

That link to inflation is why the cap moves. The Bureau of Labor Statistics measures the consumer price index that feeds the formula, which means a spike in local prices raises the cap until it hits the 10% ceiling. For 2027, the ceiling decided the result.

Renters elsewhere should check their own state and city rules. A tenant in a city with its own ordinance may have limits that differ from the state's, and some states bar local rent limits entirely.

What can a tenant do about an unlawful increase?

A tenant should first send the landlord a written demand to reduce the increase to a lawful amount. Under RCW 59.18.700, the tenant may then end the tenancy before the increase takes effect and owe rent only through the month they move out, with no fees. The tenant must give at least 20 days of written notice before terminating.

The law also gives tenants a way to sue. A tenant or the Attorney General can bring a case, and a court can award the excess rent and fees paid, up to three months of unlawful rent, and attorneys' fees. The Attorney General can seek civil penalties of up to $7,500 per violation.

Landlords may not report a tenant to a screening service for withholding the unlawful part of an increase. Tenants should still pay the lawful amount on time. Withholding the entire rent can lead to an eviction notice and a harder case.

Free help is available. Commerce points to the Attorney General's housing resources, WashingtonLawHelp and local Dispute Resolution Centers. Small Claims Court handles disputes up to $10,000.

What small landlords should do before January

Small landlords should list every unit, check its exemption status and calculate the new maximum for each tenancy. Mark the 12-month date for each tenant, since a recent move-in cannot be raised yet. Round down, not up, when you are close to the cap.

Consider your costs honestly. Property tax bills and insurance are rising in many places, and a 10% cap may not cover every increase. Our look at rental registry rules for small landlords in Columbus shows how local compliance costs add up, even where no rent cap applies.

Keep the paperwork tidy. Save the Commerce cap announcement, your calculation, the notice you sent and the date delivered. If a tenant disputes the increase, those four records answer most questions.

Finally, remember that the cap formula can change each year. Commerce publishes the next figure after the Bureau of Labor Statistics releases June inflation data, so watch for it in July. Planning 2028 rents starts then.

The practical answer

For 2027, Washington tenants can face an increase of up to 10% after their first year, and not a cent more unless an exemption applies. Kenponet's editors suggest tenants check the notice date, the amount and the exemption claim before they respond. Landlords should use the Commerce form and keep their math on file.

Your next step is simple. Compare the new rent to your current rent, divide the difference by the current rent and check the result against 10%. If it is higher, send a written demand.