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Home » Commerce sets rent cap for 2026

Commerce sets rent cap for 2026

Maximum allowable increase goes into effect Jan. 1

July 21, 2025
Journal of Business Staff

The Washington State Department of Commerce has announced a maximum allowable rent increase of 9.683% for 2026.

The rent cap is in effect for the entire calendar year.

Commerce is required to publish the rent-cap percentage for all rental units subject to the Residential Landlord Tenant Law as a result of House Bill 1217, which went into effect in May.

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 the lesser of two figures: 10% or 7% plus the Consumer Price Index.

The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for 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 this year has been 10%.

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