Washington Rent Increase Cap 2027: What Landlords Need to Know

Washington Rent Increase Cap 2027: What Landlords Need to Know

Washington's maximum annual rent increase for most covered residential rentals is 10% for increases taking effect from January 1 through December 31, 2027. But that does not mean every landlord can automatically raise rent by 10%.

Before sending a 2027 rent increase notice, landlords need to check several things: how long the tenant has lived there, whether the property qualifies for an exemption, when the increase will take effect, what notice period applies, whether the correct state form is being used, and whether a city or county rule requires more notice.

For landlords and rental-property owners in Kent, Renton, Auburn, Maple Valley, and the rest of South King County, that local-rule check can make a real difference.

The Washington State Department of Commerce publishes the annual maximum under RCW 59.18. For calendar year 2027, Commerce has set that maximum at 10%.

Key takeaways

• Washington's 2027 maximum annual rent increase is 10% for covered rentals under RCW 59.18, unless an exemption applies.
• The 2026 maximum remains 9.683% through December 31, 2026.
• A covered landlord generally cannot increase rent during the first 12 months of a tenancy.
• After that first year, the applicable annual cap limits increases during a 12-month period.
• Washington generally requires at least 90 days' written notice before a rent increase.
• Auburn requires 120 days' notice when monthly housing costs increase by more than 5%.
• Unincorporated King County requires 120 days' notice for increases greater than 3%.
• Washington requires a specific Rent and Fee Increase Notice to Tenants or a form substantially the same as the statutory version.
• Some newer buildings, certain affordable housing, and specific owner-occupied rentals may qualify for exemptions.
• After a tenant vacates and the tenancy ends, RCW 59.18.700 does not apply the same annual percentage limit to resetting the rent.
• Manufactured and mobile home lot rent is governed separately and generally has a 5% annual cap, not 10%.
• The 10% figure is a legal ceiling. It is not a recommendation that every landlord raise rent by 10%.

What is Washington's rent increase cap for 2027?

The maximum annual rent increase for most covered residential rentals under Washington's Residential Landlord-Tenant Act is 10% in 2027.

The cap applies to increases taking effect between January 1 and December 31, 2027, unless the tenancy qualifies for a statutory exemption.

Washington Department of Commerce publishes the percentage each year as required by RCW 59.18.700.

2026 compared with 2027

That means the percentage is based on when the rent increase takes effect, not simply when the landlord starts planning it.

Landlords preparing notices late in 2026 should pay close attention to the effective date.

Why is Washington's 2027 rent cap exactly 10%?

Washington law uses the lower of 7% plus the applicable Consumer Price Index increase or 10%. For 2027, the CPI-based calculation exceeded 10%, so the statutory ceiling controls.

Commerce uses the June 12-month percentage change in the Consumer Price Index for All Urban Consumers for the Seattle-Tacoma-Bellevue area.

For the 2027 calculation:

Because approximately 11.53% is higher than the statutory maximum, the allowable percentage stops at 10%.

Does the 10% cap mean every landlord can raise rent 10%?

No. Ten percent is the maximum for a covered, non-exempt tenancy when the other legal requirements are satisfied.

It is not an automatic increase.

Several other rules still apply.

No increase during the first 12 months

RCW 59.18.700 generally prohibits a rent increase during the first 12 months after a covered tenancy begins.

So if a tenant moved into a rental less than 12 months ago, the fact that the 2027 statewide cap is 10% does not by itself allow an increase.

The cap applies within a 12-month period

After the first year, the statute limits how much covered rent may be increased during any 12-month period of the tenancy.

Landlords should review the date and amount of the last increase before calculating the next one.

The maximum is not a market recommendation

A landlord may legally qualify for an increase up to the cap but still decide that a smaller adjustment makes more sense.

That decision can depend on:

• current market rent
• tenant history
• vacancy risk
• operating expenses
• nearby rental competition
• property condition
• length of tenancy
• expected turnover costs

The legal limit and the investment decision are two different questions.

What counts as rent under Washington's cap?

Washington's rules cover rent plus recurring and periodic charges identified in the rental agreement for the use and occupancy of the rental unit.

The statutory notice specifically tells tenants that their rental amount includes recurring and periodic occupancy charges, sometimes described as rent and fees.

That makes it risky to assume that a landlord can avoid the annual limit simply by moving part of an increase into another recurring occupancy charge.

Beginning January 1, 2027, Washington's statutory definition of rent also describes rent or rental amount as recurring and periodic charges identified in the rental agreement for use and occupancy, which may include utility charges. Nonrecurring items such as late-payment costs, damages, deposits, and certain legal fees are treated differently.

How much notice must a Washington landlord give before increasing rent?

Washington generally requires at least 90 days' prior written notice before a rent increase can take effect.

The increase also generally cannot become effective before the current rental term is completed. Income-based subsidized tenancies have a separate 30-day rule.

This means a landlord planning a January 2027 increase should not wait until the end of December to start the process.

The exact deadline can also depend on:

• where the rental is located
• the size of the increase
• the tenancy type
• proper service of the notice
• applicable local ordinances

That local-jurisdiction check is especially important in South King County.

Auburn landlords may need 120 days' notice

Auburn requires at least 120 days' written notice when monthly housing costs will increase by more than 5%.

For month-to-month tenancies, Auburn's rule applies when the monthly housing cost increase exceeds 5%.

For fixed-term tenants, Auburn also requires 120 days' prior notice when the following lease term will carry an increase greater than 5%.

So a landlord with a covered Auburn rental who wants to increase rent by 8% or 10% in 2027 should not rely only on Washington's general 90-day minimum.

The more protective local notice period matters.

Unincorporated King County landlords may also need 120 days

For rentals in unincorporated King County, rent increases greater than 3% require 120 days' notice.

That can matter around parts of the Maple Valley, Renton, Fairwood, and other South King County areas that are outside incorporated city boundaries.

One caution is important here.

King County's current public information page still contains an example referring to 60 days for increases of 3% or less. However, current Washington law generally requires a 90-day minimum for rent increases. Landlords should therefore follow the current statewide minimum where it is more protective rather than relying on that older 60-day example.

The practical rule is:

Check both state law and the local ordinance, then follow the requirement that actually applies to the property and proposed increase.

What notice form must Washington landlords use?

A regular renewal letter may not be enough. Washington law generally requires a notice substantially the same as the statutory Rent and Fee Increase Notice to Tenants.

RCW 59.18.720 requires landlords to use the prescribed form and to comply with both the applicable advance-notice period and Washington's service requirements.

The notice includes:

• current tenant information
• effective date
• percentage increase
• dollar amount of the increase
• new total monthly amount
• whether the increase is below or at the legal maximum
• any claimed exemption

If the landlord claims an exemption that allows an increase above the normal cap, the form also requires supporting facts or documents.

Which rental properties can be exempt from Washington's rent cap?

Washington law includes several specific exemptions, but landlords should confirm that the property actually meets the statutory requirements before relying on one.

The exemptions are listed in RCW 59.18.710.

Newer rental properties

A dwelling unit can qualify for an exemption when its first certificate of occupancy was issued 12 years or less before the date of the rent-increase notice.

The timing language matters.

The test is not simply:

"Is this building about 12 years old?"

The statute ties the exemption to the first certificate of occupancy and the date the increase notice is issued.

Certain affordable and publicly controlled housing

Exemptions can also apply to qualifying properties owned or controlled by:

• public housing authorities
• public development authorities
• certain nonprofit organizations
• certain regulated affordable housing programs
• qualifying low-income housing tax credit developments

The exact requirements vary by exemption.

Shared housing with an owner

An exemption can apply where the tenant shares a kitchen or bathroom with an owner who maintains a principal residence at the property.

Certain owner-occupied single-family properties and ADUs

The statute includes an exemption for certain owner-occupied single-family residences where the owner rents no more than two units or bedrooms, including an attached or detached accessory dwelling unit.

Rental-property owners considering an ADU should also understand the broader state rules governing accessory dwelling units. See our guide to Washington ADU rules under HB 1337.

Certain owner-occupied duplexes, triplexes, and fourplexes

An exemption can apply when the owner occupied one of the units as a principal residence when the tenancy began and continues living there.

Ownership structure matters

The owner-occupied exemptions described above do not apply in the same way when the owner is:

• a real estate investment trust
• a corporation
• or an LLC with at least one corporate member.

That is especially important for investors holding rentals in business entities.

Existing tenant versus new tenant: does the 10% cap still apply?

The annual cap generally applies during an existing covered tenancy. After the tenant vacates and the tenancy ends, RCW 59.18.700 does not prohibit resetting the rent by a larger amount for the next tenancy.

RCW 59.18.700 specifically says the annual limitation does not prohibit adjusting rent by any amount after the tenant vacates and the tenancy ends.

This is an important distinction for rental-property owners comparing renewal strategy with turnover.

Can landlords charge more for month-to-month leases?

Washington allows some difference between lease structures, but the rent difference generally cannot exceed 5% for the same dwelling unit and cannot push the rent above the applicable annual cap.

RCW 59.18.700 requires parity between lease types and generally limits the difference in rent between lease options to 5%.

So a landlord should not assume that moving a tenant from a fixed-term lease to month-to-month creates a way around the annual cap.

Does Washington's 10% cap apply to manufactured or mobile home lot rent?

No. Manufactured and mobile home lot rent is covered by a separate section of Washington law and generally has a 5% annual increase limit.

RCW 59.20.370 also generally prohibits increases during the first 12 months of the tenancy unless an exemption applies.

This distinction matters for owners and residents in manufactured-home communities because the statewide 10% headline does not describe their normal annual limit.

What happens if a landlord exceeds Washington's rent cap?

Washington law provides tenants with enforcement options and creates financial exposure for landlords who impose an unlawful increase.

A tenant generally must first give the landlord an opportunity to cure an unauthorized increase by asking that it be reduced to the lawful amount.

If a court finds a violation, available remedies can include:

• repayment of excess rent, fees, or other costs paid by the tenant
• damages of up to three months of unlawful rent, fees, or other charges
• reasonable attorney fees and court costs

The Washington Attorney General can also bring an enforcement action and may seek civil penalties of up to $7,500 per violation.

That is why compliance should involve more than checking whether the percentage is under 10%.

What should South King County landlords do before sending a 2027 increase?

A practical review can prevent avoidable problems.

1. Confirm the property's jurisdiction

Do not rely only on the mailing address.

A property with a Renton or Maple Valley mailing address may actually sit in unincorporated King County and be subject to county tenant protections.

2. Confirm when the tenancy began

If the tenant is still within the first 12 months of a covered tenancy, an increase generally cannot take effect yet.

3. Check the date of the last increase

The annual limitation is measured within a 12-month period.

4. Determine whether an exemption actually applies

Do not assume a property is exempt because it is:

• an ADU
• a duplex
• relatively new
• owned through an LLC

Each exemption has specific conditions.

5. Verify the certificate-of-occupancy date if using the newer-building exemption

The 12-year test is tied to the first certificate of occupancy and the date of the increase notice.

6. Calculate the lawful increase

For a covered 2027 increase, the statewide maximum is 10%.

But a smaller increase may make more sense depending on the local rental market.

7. Check the applicable notice period

The statewide rule is generally 90 days.

But:

• Auburn can require 120 days when the increase exceeds 5%.
• Unincorporated King County requires 120 days when the increase exceeds 3%.

8. Use the correct Washington notice form

The notice should be substantially the same as the statutory Rent and Fee Increase Notice to Tenants.

9. Include exemption documentation when required

If the increase relies on an exemption, supporting facts or documents should accompany the notice as required by the statute.

10. Confirm the service method

A legally correct form can still create problems if it is not served correctly.

RCW 59.18.720 directs landlords to comply with Washington's statutory service requirements.

11. Compare the proposed rent with the actual market

The legal maximum is not automatically the best rental strategy.

An owner should still look at:

• comparable rentals
• competing inventory
• property condition
• tenant retention
• vacancy risk
• maintenance costs
• long-term investment goals

Rental demand can vary significantly even within South King County. Our article on how Kent job corridors could shape rental demand provides additional local context.

For Renton owners thinking further ahead, see what Renton's long-term growth plan means for housing demand.

What does the 10% cap mean for rental-property investors?

The 2027 cap creates a maximum annual adjustment for covered existing tenancies, but it does not replace normal rental-property analysis.

Investors still need to understand:

• purchase price
• financing costs
• taxes
• insurance
• repairs
• reserves
• expected vacancy
• current market rent
• tenant turnover
• local regulations

A property should not be underwritten on the assumption that rent will rise by the maximum legal percentage every year.

The cap can also affect different properties in different ways.

An older non-exempt rental with a long-term tenant may operate under the annual limit.

A newer property may qualify for the 12-year exemption.

A vacant unit may be repriced differently after the prior tenancy ends.

An owner-occupied ADU may qualify for a specific exemption if all statutory requirements are met.

This is why property structure and ownership structure belong in the investment analysis.

For a broader look at the local rental environment, see how Kent's affordable housing grants shape the local rental market.

Expert insight: The cap is a ceiling, not a rental strategy

The most important planning mistake would be to treat "10%" as both the legal answer and the business answer.

It is only the legal ceiling for a covered 2027 increase when the other requirements are met.

A rental owner should first ask:

1. Is this tenancy covered?
2. Is the property exempt?
3. Has the tenant completed the first 12 months?
4. When was the last increase?
5. What notice period applies here?
6. Am I using the required form?
7. What is the actual market rent?
8. Would the proposed increase improve or hurt the long-term performance of the property?

A landlord may be legally allowed to increase rent by 10% and still decide that 3%, 5%, or no increase is the better choice.

The law sets the boundary.

The property's numbers and the local rental market should guide the strategy inside that boundary.

Frequently asked questions

What is Washington's rent increase cap for 2027?

The maximum annual increase for most covered residential tenancies under RCW 59.18 is 10% for increases taking effect during calendar year 2027, unless an exemption applies.

Can a Washington landlord raise rent 10% in 2027?

Potentially, but not automatically. A covered landlord must also comply with the first-12-month restriction, the annual timing rule, notice requirements, applicable local rules, and required form.

Can rent be increased during the tenant's first year?

Generally no for a covered, non-exempt tenancy. RCW 59.18.700 prohibits an increase during the first 12 months after the tenancy begins.

How much notice is required for a rent increase in Washington?

Washington generally requires at least 90 days' prior written notice. Some local jurisdictions require more.

Does Auburn require more notice?

Yes. Auburn requires 120 days' notice when monthly housing costs will increase by more than 5%.

How much notice is required in unincorporated King County?

Rent increases greater than 3% require 120 days' notice in unincorporated King County. The current statewide law still generally requires a 90-day minimum for smaller increases.

Are new rental properties exempt from the 10% cap?

Some can be. The statute exempts a dwelling unit when its first certificate of occupancy was issued 12 years or less before the date of the rent-increase notice.

Are ADUs exempt?

Some owner-occupied ADU arrangements may qualify for an exemption, but not every ADU is automatically exempt. Ownership and occupancy requirements matter.

Does the rent cap apply when a tenant moves out?

The annual percentage limit does not prohibit resetting rent after the tenant vacates and the tenancy ends.

Does the cap include recurring fees?

Recurring and periodic charges identified in the rental agreement for use and occupancy are included in the statutory rent-and-fee framework.

Are manufactured-home lot rents capped at 10%?

No. Covered manufactured/mobile home lot rent generally has a separate 5% annual cap under RCW 59.20.370.

Does a landlord have to raise rent by 10%?

No. Ten percent is the 2027 maximum for covered, non-exempt rentals. A landlord can choose a smaller increase or no increase.

Helpful resources

Washington Department of Commerce Landlord Resource Center

Commerce publishes the official annual maximum rent increase and explains the CPI calculation.

Washington Department of Commerce HB 1217 Landlord Resource Center

RCW 59.18.700

State law covering the annual cap, first-12-month restriction, vacancy reset, lease parity, enforcement, and penalties.

Read RCW 59.18.700

RCW 59.18.710

Official list of exemptions from the annual increase limitation.

Read RCW 59.18.710 exemptions

RCW 59.18.720

Washington's required Rent and Fee Increase Notice to Tenants.

Read RCW 59.18.720 notice requirements

RCW 59.18.140

Statewide advance-notice requirements for rent increases.

Read Washington's 90-day rent-increase notice rule

City of Auburn landlord and tenant information

Local rules include the 120-day notice requirement for certain increases over 5%.

City of Auburn landlord and tenant information

Unincorporated King County tenant protections

Local information on the 120-day notice requirement for increases above 3%.

King County tenant protections for unincorporated areas

Manufactured/Mobile Home Landlord-Tenant Act

The separate state framework includes the 5% annual cap for covered manufactured-home lot rent.

Read RCW 59.20.370

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This article is intended as general real estate information, not legal advice. Rental laws can depend on the property, tenancy, jurisdiction, and individual facts. Property owners should confirm current requirements and seek qualified legal guidance when needed.