WAs new rent cap set just below 10 for 2026

The Washington Department of Commerce has set the annual residential rent increase cap at 9. 683% for 2026, slightly lower than the current maximum of 10%. This limit is part of House Bill 1217, which restricts increases to 7% plus inflation or 10%, whichever is lower, and takes effect on January 1. Under the law, rent increases are prohibited during the first year of a tenancy, but landlords can set any rent upon a tenant's move-in. Certain properties, including new constructions and low-income developments, are exempt from this cap.

If landlords exceed the limits, tenants can terminate their leases with 20 days’ notice or seek litigation, with fines of up to $7,500 per violation. The legislation faced significant debate, with progressives advocating for a strict 7% cap, while moderate Democrats pushed for compromise. Democrats argue the cap offers predictability for renters, while Republicans express concerns about its impact on property development and small landlords. The cap will remain effective until 2040, influencing the rental market in Washington State.