Washington HB 1217 Rent Cap, the 2026 Guide for Small Landlords
HB 1217 (signed May 2025) is the most consequential change to Washington landlord-tenant law in three decades. It introduced a statewide rent cap, extended advance-notice requirements to 90 days, capped late fees, and created a 12-year exemption for new construction with a 2040 sunset. Small Washington landlords who used pre-HB 1217 leases are routinely out of compliance in 2026 without realizing it. This is the explainer.
Nothing here is legal advice. It is a plain-English breakdown with citations to RCW 59.18 (the Residential Landlord-Tenant Act) and HB 1217.
Before HB 1217, Washington had no statewide cap on rent increases, no first-year prohibition, and a 60-day advance notice rule for any rent change. Local rent control was preempted by state statute.
HB 1217 (codified at RCW 59.18.700 series and amending RCW 59.18.140 and 59.18.170) flipped most of that:
- Annual rent cap at the lesser of 7 percent plus regional CPI or 10 percent (RCW 59.18.700).
- First-year freeze: no rent increase during the first 12 months of a tenancy.
- 90-day advance notice for any rent increase (amended RCW 59.18.140), up from 60 days.
- Late fee cap of $75 per month or 1.5 percent of rent, whichever is greater (amended RCW 59.18.170 Section 108).
- 12-year new-construction exemption: buildings with first Certificate of Occupancy issued within the last 12 years are exempt from the cap.
- 2040 sunset: the rent cap expires July 1, 2040, unless renewed.
RCW 59.18.700 caps the rent increase at the lesser of:
- 7 percent plus the regional CPI-U (Seattle-Tacoma-Bellevue area, 12 months ending August), or
- 10 percent
in any 12-month rolling period.
The Washington State Department of Commerce publishes the maximum allowable percentage each year, typically by mid-September.
For example, if the CPI-U is 3.2 percent, the cap is 7 + 3.2 = 10.2 percent capped at 10 percent → 10 percent maximum increase. If the CPI-U is 1.5 percent, the cap is 7 + 1.5 = 8.5 percent → 8.5 percent maximum increase.
The cap applies to all rent components, including parking, storage, and amenity fees if the lease bundles them with rent.
RCW 59.18.700 also prohibits any rent increase during the first 12 months of a tenancy. The earliest a landlord may increase rent is at the renewal of the first year.
This is a hard rule. A lease that says "rent may be increased at any time with 90 days notice" is unenforceable for the first year. The lease may anticipate the year-2 increase by setting a step-up amount in the original agreement, as long as the year-1 amount is clearly the year-1 rent.
## The 90-day rent increase notice
HB 1217 amended RCW 59.18.140 to require 90 days advance written notice for any rent increase, up from the previous 60-day rule.
The notice must: - Be in writing. - State the new amount. - State the effective date (at least 90 days from service, ideally 95 days for service-by-mail margin). - Identify the property by full street address.
A defective notice (under 90 days, not in writing, or missing required content) makes the increase unenforceable until a proper notice is served. The tenant may pay the old rent until 90 days after the proper notice.
## Exemptions, including 12-year new construction
The rent cap does not apply to:
- Buildings with first Certificate of Occupancy issued within the last 12 years. Owners must produce documentation of the CO date if challenged. Once the building reaches its 12-year anniversary, the cap applies retroactively to subsequent increases.
- Owner-occupied duplexes and triplexes (limited; check RCW 59.18.700 specific subsections for the precise language).
- Government-subsidized housing where rent is set by federal or state subsidy formulas.
- Single-room occupancies in shared housing under specific conditions.
The 12-year exemption is the most consequential. New construction completed in 2014 or later is exempt for now, but the exemption phases out building by building as each reaches 12 years old. By 2030, much current "exempt" stock will be inside the cap.
HB 1217 includes a sunset clause: the rent cap expires July 1, 2040, unless the legislature renews it. The cap will be in effect for approximately 15 years from passage.
If the cap is allowed to sunset without renewal, Washington reverts to no statewide cap. Tenancies in place at the sunset date would be subject to the new (uncapped) regime at the next 90-day notice cycle.
## How to calculate your maximum increase
Step-by-step:
- Look up the CPI-U for Seattle-Tacoma-Bellevue area, 12 months ending August (Bureau of Labor Statistics).
- Add 7 percent.
- Compare to 10 percent, take the lower.
- Multiply by current rent to get maximum dollar increase.
- Add to current rent for new rent.
Example: current rent $1,800, CPI-U 3.5%. - 7 + 3.5 = 10.5%, capped at 10% → 10% - $1,800 × 10% = $180 - Maximum new rent: $1,800 + $180 = $1,980
The Washington State Department of Commerce maintains a free annual cap calculator at commerce.wa.gov, which is the authoritative source.
## Penalties for exceeding the cap
A landlord who increases rent above the cap is liable for: - The excess (rent above the cap) refunded to the tenant. - Reasonable attorney fees if the tenant prevails in suit. - Tenant offset right: the tenant may withhold the excess and offset against future rent.
Tenant remedies are administered through Washington State Superior Court (small claims for amounts under $10,000). The tenant may also report the violation to the Washington Attorney General's Office under the Consumer Protection Act.
Three mistakes appear repeatedly in 2026 Washington rent practices:
Using a pre HB 1217 lease that exceeds the cap. Out-of-state landlords and small Washington landlords using LegalZoom-tier templates routinely have lease terms that allow rent increases above HB 1217 limits. The cap applies regardless of lease language; the lease cannot waive the cap.
60-day notice instead of 90-day. The pre HB 1217 rule was 60 days. Templates that have not been updated still produce 60-day notices, which are defective post HB 1217.
Missing the first-year freeze. A landlord who raises rent at month 11 of the first tenancy violates RCW 59.18.700. The earliest legal increase is the first day of month 13 (with 90 days advance notice served at month 10 or earlier).
What is the maximum rent increase in Washington in 2026? The lesser of 7 percent plus regional CPI-U (Seattle-Tacoma-Bellevue) or 10 percent. The exact number is published annually by the Department of Commerce.
Does the cap apply to my new construction? If the building's first Certificate of Occupancy is within the last 12 years, the building is exempt. Once it crosses 12 years, the cap applies.
How much advance notice do I have to give for a rent increase? 90 days written notice (RCW 59.18.140, post HB 1217).
Can I raise rent in the first year of the tenancy? No. RCW 59.18.700 prohibits any increase in the first 12 months.
What happens if I exceed the cap? The excess is refunded, attorney fees if tenant prevails, and possible Consumer Protection Act exposure.
When does the rent cap expire? July 1, 2040, unless the legislature renews HB 1217.
Are there local rules on top of HB 1217? Seattle, Tacoma, and Spokane have additional renter protections. HB 1217 is a state floor; local rules may go stricter but not laxer.
If you need a Washington rent increase notice that complies with HB 1217 (90-day advance notice, cap calculation, first-year freeze acknowledgment), our team's Washington rent increase notice at leasekit.io/templates/washington-rent-increase-notice covers it for $29 one-time. The full Washington residential lease at leasekit.io/templates/washington-residential-lease bundles the rent-cap notice with HB 1217-compliant lease terms.