For calendar year 2027, the most Washington law lets a landlord raise rent on a covered unit is 10%. Inside Seattle city limits, a housing-cost increase of 10% or more within 12 months is also what brings in the city's Economic Displacement Relocation Assistance ordinance. That ordinance can require the owner to pay back three months of a departing tenant's housing costs. So in 2027, a Seattle owner who takes the full increase the state allows has also crossed the city's relocation threshold.
This matters most to two groups. One is investor-owners comparing a Seattle rental with one somewhere else. The other is Seattle homeowners deciding whether to keep the house as a rental after they move. The headline cap is the same everywhere in the state. In Seattle, though, the amount an owner can raise rent without taking on extra obligations is a little lower than the headline, and Seattle's notice clock makes owners commit to that increase earlier than they would elsewhere.
Why the 2027 cap stopped at 10%
RCW 59.18.700 limits increases in any 12-month period of a tenancy to 7% plus the Seattle-area CPI, or 10%, whichever is less. The CPI figure is the June 12-month change in the Seattle-area all-items index. For 2026, that formula produced a cap of 9.683%, according to the Department of Commerce's landlord resource center.
Inflation then rose. The Bureau of Labor Statistics release dated July 14, 2026 put Seattle-area CPI up 4.5% for the 12 months ending June 2026. Seven percent plus that change comes to about 11.53%, which is above the statutory ceiling. On July 15, 2026, Commerce announced a 10% maximum for increases between January 1 and December 31, 2027.
The formula went above 10%, so the cap for 2027 is simply 10%. In most of Washington, that is the whole story. In Seattle, 10% is also where a separate set of city rules starts to apply.
Seattle's relocation trigger is also set at 10%
Seattle's Economic Displacement Relocation Assistance ordinance, known as EDRA, has applied since July 1, 2022. It covers any housing-cost increase that totals 10% or more within the same 12-month period. When an increase reaches that level, the owner must attach the city's EDRA notice to the notice of increase. Tenant households earning 80% or less of area median income who give notice to vacate can apply for help. The City advances them three times the current monthly housing cost and then requires the landlord to reimburse those funds.
The city also counts more than rent. Seattle defines housing costs as rent plus parking, storage, and other periodic fees paid to the landlord. The ordinance text also covers an increase below 10% if, combined with other increases taking effect within the prior 12 months, the total reaches the threshold. For example, a rent increase under 10% combined with a new monthly parking charge could add up to more than 10% even though the rent increase alone stays below it.
In 2026 there was a small buffer between the two rules. The state cap of 9.683% sat just under Seattle's trigger, so a maximum increase on a covered unit stayed below the EDRA line. In 2027 the state cap and the trigger are the same number.
| Rule | State baseline | Inside Seattle city limits |
|---|---|---|
| Maximum increase on a covered unit in 2027 | 10% | 10% |
| Increase that brings in relocation obligations | No state equivalent | 10% or more in 12 months, all housing costs combined |
| Minimum written notice | 90 days | 180 days |
| Increases during the first 12 months of a tenancy | Not allowed | Not allowed |
| Who enforces the cap | Tenants and the Attorney General | Tenants and the Attorney General; the City enforces EDRA |
The state figures come from RCW 59.18.700 and RCW 59.18.140. The Seattle figures come from the city's housing cost increase guidance.
The 180-day notice period starts before the cap is announced
State law generally requires at least 90 days' written notice of a rent increase. Seattle has required at least 180 days since November 9, 2021. The city's guidance gives an example: to impose an increase on June 1, the tenant must receive notice no later than December 2. That allows a full 180 days, not counting the day of service. An increase must also take effect at the start of a rental period, and the notice must include the city's required language. The city says a notice without that language is unenforceable.
Here is how that 180-day clock lines up with the state cap schedule this year:
- July 4, 2026. Counting back 180 days the way the city's example does, this was about the last day to serve notice for an increase taking effect January 1, 2027.
- July 14, 2026. BLS published the June CPI figure that sets the formula.
- July 15, 2026. Commerce announced the 10% cap for 2027.
- October 22, 2026. Counting the same way, a notice served on this date cannot take effect before April 21, 2027. For a rental period that starts on the first of the month, the earliest date is May 1.
Seattle owners setting a January increase had to serve notice before the state published the cap for that year. This year's cap turned out to be the ceiling. Commerce says the figure is published each year shortly after the mid-July release of June CPI data. With a 180-day notice period, every lease that renews in winter will run into the same timing problem.
The state law and the city guidance do not directly say which year's cap applies to a notice served in one calendar year for an increase that takes effect in the next. Commerce lists a contact for questions at [email protected].
Newer buildings are exempt from the cap but still subject to EDRA
The state law exempts a tenancy in a unit whose first certificate of occupancy was issued 12 or fewer years before the date of the rent-increase notice. An owner claiming any exemption must state the supporting facts in the written notice.
That exemption lifts the 10% cap. It does not lift Seattle's 180-day notice rule, and it does not lift EDRA, which applies to any housing-cost increase totaling 10% or more. A newer Seattle condo may legally take an increase above 10%, but any increase that large comes with the EDRA notice and possible reimbursement. For an exempt unit, EDRA is the only check on the size of an increase.
Older housing has no general exemption based on property type. Under RCW 59.18.710, a single-family home is exempt only under narrow owner-occupancy conditions: the owner lives there as a principal residence and rents no more than two units or bedrooms, counting ADUs. Condos have no separate exemption. The owner-occupancy exemptions are not available when the owner is a real estate investment trust, a corporation, or an LLC with a corporate member. For most investor-owned Seattle houses and condos built before 2014 or so, the 10% cap applies, and the full 10% brings in EDRA.
How the cap has been enforced in its first year
A tenant who receives an increase above the cap must first give the landlord a written demand to reduce it. The tenant may also end the rental agreement before the increase takes effect, with at least 20 days' notice and no termination fees. Seattle's guidance notes that the Attorney General can seek civil penalties of up to $7,500 per violation, plus attorney's fees and mandatory damages to the tenant.
The Washington State Standard reported on May 26, 2026 that the Attorney General's office had settled about four dozen alleged cases. Those settlements imposed more than $800,000 in fines, but no civil penalties were collected because the landlords corrected the violations. More than 1,000 households received rent relief. So far, enforcement has mostly meant rolling increases back.
Enforcement differs between the two rules. The City of Seattle does not enforce the state rent-stabilization law. That falls to the Attorney General and to tenants. The City does enforce EDRA. The ordinance sets citations of $1,000 for a first violation and $2,000 for later violations within five years, and it can impose civil penalties of $1,000 per day for each violation.
What this means for a Seattle rental's projections
Taken together, these rules change the numbers an owner should plan around. A 10% cap would suggest projecting 10% annual increases. In Seattle, an increase at that level also brings a possible obligation equal to three months of housing costs if an eligible household moves out. Any recurring fee added in the same 12 months counts toward the threshold too. Each increase is set about six months before it takes effect, and for winter renewals that is before the year's cap is known.
The rules on lease terms also limit the alternatives. Seattle allows no more than a 5% rent difference between month-to-month agreements and leases. State law bars any increase during the first 12 months of a tenancy. It does allow the landlord to reset rent by any amount once a tenant leaves and the tenancy ends. So in Seattle, the realistic annual increase for a continuing tenant sits a little under 10%, and rent resets only when a tenancy ends.
Frequently Asked Questions
Does a single-family rental in Seattle fall under the cap? Usually, yes. RCW 59.18.710 has no general exemption for single-family homes or condos. The owner-occupancy exemptions apply only in narrow cases and are not available to corporate, REIT, or corporate-member LLC owners. A unit whose first certificate of occupancy was issued 12 or fewer years before the notice date is exempt from the cap regardless of property type.
Does EDRA apply to a unit exempt from the state cap? Seattle's EDRA page says the ordinance applies to any housing-cost increase totaling 10% or more within 12 months. The state cap exemptions do not change that.
What counts toward Seattle's 10% threshold? Rent plus parking, storage, and other periodic fees paid to the landlord. Increases taking effect within the same 12-month period are added together.
This post is general information, not legal or financial advice. Owners should confirm how these rules apply to their own property with a qualified attorney or other appropriate professional.
At Sound Real Estate Services, our brokerage and property-management teams work under one roof. When an owner is deciding whether to buy, keep, or reposition a Seattle rental, we can review the 180-day notice calendar, the EDRA threshold, and the realistic rent projections together. Schedule a Consultation to go over a specific property's renewal dates and options before the next notice is due.
