Washingtons new cap on rent hikes set at 10 through end of 2025

Washington's House Bill 1217 limits rent increases to a maximum of 10% through the end of 2025, following its signature by Governor Bob Ferguson. The law permits annual rent hikes of 7% plus inflation or 10%, whichever is lower, with inflation currently suggesting a higher increase. The cap aims to provide stability for tenants facing escalating housing costs, while opponents, including some Republicans, argue the bill resembles rent control and could deter new housing developments. The legislation also stipulates that landlords cannot raise rent in the first year of tenancy and must provide a 90-day notice before any increase. The Rental Housing Association of Washington is exploring a legal challenge against the law, citing concerns for small landlords.

Notably, the law exempts new constructions for the first 12 years and certain housing types, including public housing. The maximum allowable increase for 2026 will be published based on future inflation data. Tenants can seek legal recourse against landlords who violate the rent cap, with penalties of up to $7,500 per violation.