Washington State Caps Rent Hikes at 10% Through 2025

Washington state has implemented a new law capping annual rent increases at 10% for many rental properties through the end of 2025, following Gov. Bob Ferguson's recent signing of House Bill 1217. The cap is calculated as 7% plus inflation, with the maximum set at 10%, and a separate 5% cap applies to manufactured/mobile home lots. This legislation aims to provide renters with more predictable housing costs amid rising prices, although exemptions exist for newer constructions, subsidized housing, and certain owner-occupied units. While supporters believe the law offers stability and protection against excessive rent hikes, critics argue it may discourage new housing development and prompt landlords to sell properties or seek legal challenges. The Department of Commerce will update the rent cap for 2026 based on new inflation data expected in July, and the law includes provisions requiring 90 days' notice for rent increases and penalties for landlords who violate the caps. The debate continues over whether these measures will sufficiently help vulnerable tenants or impact the broader housing market negatively.