WAs new rent cap set just below 10 for 2026

Washington's Department of Commerce confirmed that the annual residential rent increase cap will be set at 9. 683% for 2026, reflecting a slight decrease from the 10% maximum for 2025. This cap stems from House Bill 1217, signed by Gov. Bob Ferguson, which limits rent hikes to 7% plus inflation or 10%, whichever is lower. As part of the law, landlords are prohibited from raising rents during the first year of a tenancy, allowing for stability for new renters.

However, certain properties, including new constructions and owner-occupied duplexes, are exempt from this rent cap. Critics, particularly among small landlords, express concerns that the compromise could hinder property development and maintenance. The law aims to balance renter protections with housing market dynamics, remaining in effect until 2040. Annual adjustments will be announced each July, aligning with inflation data. This legislative measure reflects ongoing debates on housing affordability and landlord-tenant relations in Washington.