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Home » Commerce announces 10% rent cap for remainder of 2025

Commerce announces 10% rent cap for remainder of 2025

Maximum annual rent increase for 2026 expected to be announced in July

May 30, 2025
Journal of Business Staff

The Washington State Department of Commerce has announced a 10% maximum annual rent increase for the remainder of 2025.

The rent cap is the result of a new Washington state law—House Bill 1217—that went into effect May 7.

HB 1217 specifies that a landlord may not increase rent for any type of tenancy during the first 12 months after the tenancy begins, according to the Landlord Resource Center on Commerce’s website.

After the first 12 months, a landlord may increase the rent during any 12-month period of the tenancy up to 7% plus the Consumer Price Index, or 10%—whichever is less.

The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, according to the U.S. Bureau of Labor Statistics. It is widely used to measure inflation and as a guide in making economic decisions.

The maximum annual rent increase percentage allowed for 2026 is expected to be published in July.

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