If you own a rental property in Washington state, the rules of the game have fundamentally changed. Governor Ferguson’s House Bill 1217 has officially moved Washington into a rent-stabilized era. For 2026, the Washington Department of Commerce has released the final “magic number,” and it requires a calculator.
What Is HB 1217?
Signed into law in May 2025, HB 1217 brings Washington into the category of states with formal rent stabilization rules. The law caps how much landlords can raise rent on existing tenancies over any 12-month period.
The formula is simple: rent increases are limited to 7% plus the Consumer Price Index (CPI), or 10%, whichever is lower.
The 2026 Rent Cap: 9.683%
For 2026, the Washington Department of Commerce ran the numbers and landed at 9.683%. This is the maximum allowable increase for any rent notice issued and taking effect between January 1 and December 31, 2026.
The Financial Risk: Raising rent even $1 above this cap exposes you to a $7,500 penalty per violation plus attorney fees. Furthermore, the tenant gains the right to break their lease with just 20 days’ notice if the cap is exceeded.
*The AG is Watching – The Attorney General’s office has already been actively sending out warning letters or filing suits against landlords for notice errors in 2025. Do not assume the rules are too new for enforcement.
The 180-Day Seattle Rule & The EDRA Trap
While the state requires 90 days’ notice, Seattle landlords are still bound by the city’s 180-day requirement.
- Timing: If your property is in Seattle and you want an increase to take effect on January 1, 2026, your notice must be served by July 5, 2025.
- The EDRA Requirement: In Seattle, any increase reaching 10% (or cumulatively over 12 months) triggers the Economic Displacement Relocation Assistance (EDRA) notice. While the 2026 state cap is slightly below this (9.683%), we strongly recommend including the EDRA notice to avoid any legal ambiguity if your total increases for the year approach that 10% threshold.
Landlords are often frustrated by the conflicting city and state laws; this is one of the many advantages of having a property management company in your corner. Private owners that wait for the 90-day mark only to realize they’ve already missed the Seattle window risk severe cuts to their ROI if the AG finds out.
How to Deliver a “Bulletproof” Notice
Under HB 1003 (effective July 2025), a common mistake like relying on email can invalidate your notice. To be legally enforceable, your notice must be:
- Hand-delivered to the tenant, OR
- Posted on the door AND sent via USPS Certified Mail, postmarked from within the state of Washington.
NPPM Tip: When serving by mail, you must allow for 5 additional days before the notice period officially begins. For a Seattle increase, this effectively means providing a 185-day lead time. Do not procrastinate on this or let a small mistake like improper postage or a poorly written address lead to an unnecessary fine.
Summary: Key Rules You Must Follow
- No increases in the first 12 months: You cannot raise rent at all during the first year of a tenancy, regardless of lease type.
- 9.683% Maximum: This is the hard ceiling for all 2026 increases on non-exempt properties.
- 180-Day Notice (Seattle): Seattle requires six months of lead time; the rest of Washington requires 90 days.
- Exemptions Exist: The cap typically does not apply to units with a certificate of occupancy issued within the last 12 years, owner-occupied duplexes/triplexes, or specific low-income housing.
- Certified Mail is Mandatory: If you aren’t handing the notice directly to the tenant, it must be sent via Certified Mail with a Washington postmark.
The Bottom Line
Compliance in the Seattle rental market is now a high-stakes, full-time job. Between the new state cap and the AG’s active enforcement—8 landlords were already fined in 2025—the margin for error has disappeared. The ultimate goal here is stability; while 9.683% is the ceiling, some of the most successful property owners find that smaller, consistent increases keep their best tenants in place longer.
At North Pacific Property Management, we handle the math, the legal buffers, and the delivery requirements so our clients can focus on ROI.
Protect your investment and your peace of mind. Contact us at North Pacific Property Management for a free consultation and tell us about your property.
About the Author: Joshua Fant
