For 2026 the maximum is 9.683%. For 2027 it rises to 10%. Those limits apply to most residential rentals in Washington under HB 1217. You must give at least 90 days written notice, you cannot raise rent at all during the first 12 months of a tenancy, and if your rental sits inside Olympia or Tumwater the city adds requirements on top that are stricter than the state.
That last point is where most owners get caught. The statewide cap is a ceiling, not permission. In Olympia in particular, an increase that is perfectly legal under state law can trigger a relocation payment that costs you more than two years of the extra rent.
Here is the whole picture, with the numbers, the deadlines, and the traps.
What is the rent increase cap for 2026 and 2027?
| Increase takes effect | Maximum increase | How the figure was set |
| January 1 to December 31, 2026 | 9.683% | 7% plus CPI, which landed below the 10% ceiling |
| January 1 to December 31, 2027 | 10% | Formula produced 11.5%, so the 10% statutory ceiling applied |
The formula sits in RCW 59.18.700: 7% plus the Consumer Price Index, or 10%, whichever is lower. The Washington State Department of Commerce publishes the figure each year shortly after the Bureau of Labor Statistics releases June data, normally in early July. The 2028 number will appear around July 2027.
A detail worth pinning down, because it decides which cap you are working under: the cap that applies is the one in force when the increase takes effect, not when you serve the notice. A notice served in November 2026 for an increase effective February 2027 falls under the 2027 cap of 10%.
Why is the 2027 cap exactly 10%?
Because 10% is the hard ceiling written into the statute, and this year the formula went past it. Commerce used a June 2025 index of 364.344 and a June 2026 index of 380.849, which produced 11.5%. Since the law does not permit anything above 10%, the cap held at 10%.
This is useful for planning. Rent increases in Washington can never exceed 10% in a single year, no matter what inflation does. 2027 is the maximum the system allows.
How much notice do you have to give?
At least 90 days in writing under state law, using the specific notice language chapter 59.18 RCW requires. If your city requires longer, the city rule wins. In Olympia and Tumwater it very often does.
You also cannot raise rent during the first 12 months of a tenancy, regardless of what the lease says or what type of tenancy it is.
Does local law in Thurston County add anything?
Yes. Both Olympia and Tumwater have their own rental housing codes, and in several situations their rules are stricter than the state. Where local law is more restrictive, the local rule governs. If you own rentals inside either city, the statewide cap is only half of what you need to know.
City of Olympia
Olympia requirements sit in Olympia Municipal Code chapter 5.82.
Longer notice on larger increases. Olympia requires 120 days written notice for an increase above 5%, and 180 days for an increase of 10% or more. Notices above 5% must also state the rationale for the increase and set out the tenant right to end the tenancy. For increases of 5% or less the state 90 day rule applies, because it is the stricter of the two.
Relocation assistance. This is the provision most Olympia owners have never heard of, and it is the expensive one. If rent rises 7% or more compared with 12 months earlier, an eligible tenant can request economic displacement relocation assistance. The tenant has 45 days from the notice to ask. The landlord then has 31 days to pay an amount equal to 2.5 times one month rent, and must notify the city within 30 days. Tenants in occupancy less than six months, subsidised tenancies, and owner-occupied single units fall outside it.
Registration, licensing and inspections. Olympia rentals must be registered with the city annually, renewed at the end of December, alongside a business licence. Properties are inspected on a five year cycle at the owner expense, with advance notice. Owner-occupied single units are exempt.
City of Tumwater
Tumwater rules are in Tumwater Municipal Code chapter 5.75, with registration handled separately under chapter 5.80.
Notice periods mirror the Olympia structure. Tumwater requires 180 days notice for an increase above 10%, and 120 days for an increase above 5% but below 10%. Subsidised tenancies require 30 days. As in Olympia, the state 90 day floor governs smaller increases.
Termination notice runs longer than the state minimum. A no-cause termination requires at least 90 days before the end of the tenancy period. Displacement for demolition, substantial rehabilitation or change of use requires at least 120 days.
Annual tenant disclosures. Landlords must give tenants written summaries covering unfair housing practices, state tenant law, eviction procedure and fair housing rights, and must redistribute updated summaries every year. Missing this is a compliance failure even when the rent increase itself is handled perfectly.
Registration exempts most single-family rentals. Tumwater registration requirement carves out detached single-family homes, duplexes, triplexes, manufactured and mobile homes, and condominiums. If you own one rental house in Tumwater you very likely do not need to register. The notice rules above still apply to you in full. Operating a covered unit without a licence carries penalties of $100 per day for the first ten days and up to $400 per day after that.
Lacey, Yelm and unincorporated Thurston County
We are not aware of a Lacey or Yelm ordinance adding to the state rent increase rules as at July 2026, so the HB 1217 framework governs in both. Local ordinances do change, and the Tumwater code is only a few years old, so confirm with the city before serving notice on a property in either.
How do you calculate a compliant rent increase?
Take a rental at $2,000 a month.
| Scenario | New rent | Monthly increase | Extra per year |
| 2026 maximum, 9.683% | $2,193.66 | $193.66 | $2,323.92 |
| 2027 maximum, 10% | $2,200.00 | $200.00 | $2,400.00 |
| Olympia relocation trigger, 7% | $2,140.00 | $140.00 | $1,680.00 |
Why the legal maximum can be the wrong number in Olympia
Look at what those three rows mean together for an Olympia property.
State law lets you go to $2,193.66. But anything above $2,140 crosses the Olympia 7% relocation threshold. If the tenant requests assistance, you owe 2.5 times one month rent, which on a $2,000 rental is $5,000, payable within 31 days.
The full 9.683% increase earns you $2,323.92 over a year. One relocation payment of $5,000 wipes out more than two years of that increase. Taking the state maximum can leave you worse off than an increase of 6.9%, purely because of a city rule that has nothing to do with HB 1217.
This is the single most important thing an Olympia rental owner can understand about the 2026 and 2027 caps, and it is invisible if you only read the state guidance.
When do 2027 rent increase notices have to go out?
If you own inside Olympia or Tumwater and you are planning an increase of 10% for 2027, you need 180 days notice. Working backwards, the deadlines are tighter than most owners expect.
| Increase effective | Serve by, if 10% or more (180 days) | Serve by, if above 5% (120 days) |
| January 1, 2027 | July 5, 2026 (already passed) | September 3, 2026 |
| February 1, 2027 | August 5, 2026 | October 4, 2026 |
| March 1, 2027 | September 2, 2026 | November 1, 2026 |
| April 1, 2027 | October 3, 2026 | December 2, 2026 |
| May 1, 2027 | November 2, 2026 | January 1, 2027 |
| June 1, 2027 | December 3, 2026 | February 1, 2027 |
The window for a January 1 increase at the full cap has already closed. If you want a February 1, 2027 increase at 10% on an Olympia or Tumwater property, the notice has to be served by early August 2026.
Which properties are exempt from the cap?
- New construction. Exempt for 12 years from the issuance of the first certificate of occupancy, under RCW 59.18.102.
- Certain owner-occupied buildings. Owner-occupied triplexes and fourplexes where the owner lives in one unit, and which are not corporately owned.
- Qualifying nonprofit housing. Affordable housing owned and operated by qualifying nonprofits.
Manufactured and mobile home lot rents sit under a separate, lower cap of 5%.
If you intend to rely on an exemption, do not simply proceed. The written rent increase notice must set out the specific facts and documents supporting the exemption. Claiming one incorrectly is treated the same as breaching the cap.
What happens if you go over the cap?
More than most owners realise. A tenant can recover the excess rent paid, plus up to three months of unlawful rent charges, plus reasonable attorney fees and costs. The Attorney General has enforcement authority and can impose civil penalties of up to $7,500 per violation. That is per violation, so a landlord who miscalculates across several units multiplies the exposure.
An over-cap increase is also unenforceable. If a tenant challenges it, you do not collect the increase, and you have to rescind and reissue a compliant notice, losing the whole notice period again. In Olympia, where that period can be 180 days, a mistake can cost you most of a year.
What else did HB 1217 change?
- Rent cannot be raised at all in the first 12 months of a tenancy.
- Written notice of at least 90 days, using the language the statute requires.
- Notices claiming an exemption must document the basis for it.
- Move-in fees and security deposits face their own limits, so a rent increase paired with a higher deposit needs checking separately.
What mistakes are Olympia landlords making most often?
- Using the state cap inside city limits. Legal under HB 1217, non-compliant in Olympia or Tumwater if the notice period was too short.
- Serving 90 days for a large increase. An increase above 5% in either city needs 120 days, and 10% or more needs 180.
- Not knowing about relocation assistance. Crossing 7% in Olympia creates a potential $5,000 liability on a $2,000 rental.
- Applying the wrong year cap. It is the effective date that decides, not the notice date.
- Raising rent inside the first year. Not permitted, whatever the lease says.
- Assuming an exemption applies. New construction is 12 years from certificate of occupancy, and it has to be documented in the notice.
What should tenants know about the rent cap?
If you rent in Washington, your rent cannot rise more than 9.683% during 2026 or more than 10% during 2027 unless your home is exempt, and your landlord must tell you in writing at least 90 days beforehand. Your rent cannot be raised during your first 12 months.
If you rent in Olympia and your rent is rising 7% or more compared with a year ago, you may be able to request relocation assistance of 2.5 times one month rent. You have 45 days from the notice to make that request. If you rent in Olympia or Tumwater and a large increase arrived with less notice than the city requires, the notice may not be valid.
How MVP Property Pros handles rent increases
We have managed rental homes across Thurston County since 2004, and we track these rules per property rather than per portfolio, because a home in Olympia and a home in unincorporated Thurston County are not governed by the same requirements even when they are ten minutes apart.
For every increase we check which cap applies by effective date, which city the property sits in, which notice period that city requires, whether the increase crosses the Olympia 7% relocation threshold, and whether the increase is worth taking once that risk is priced in. Then we serve a compliant notice on time and document it.
If you would like your 2027 increases reviewed before the notice deadlines pass, get in touch or call (360) 339-8539. You can also read more about what full-service management includes and about what management costs in Olympia.
Frequently asked questions
How much can a landlord raise rent in Washington State in 2026?
Up to 9.683% for increases taking effect between January 1 and December 31, 2026. The figure comes from RCW 59.18.700, which sets the cap at 7% plus the Consumer Price Index or 10%, whichever is lower. Most residential rentals are covered, and at least 90 days written notice is required.
What is the Washington rent increase cap for 2027?
10%. The Department of Commerce published the figure in July 2026 for increases taking effect between January 1 and December 31, 2027. The formula produced 11.5% this year, so the 10% statutory ceiling applied instead. Rent increases in Washington can never exceed 10% in a single year.
Does Olympia have its own rent increase rules?
Yes. Olympia Municipal Code chapter 5.82 requires 120 days notice for an increase above 5% and 180 days for 10% or more, and an increase of 7% or more can entitle an eligible tenant to relocation assistance of 2.5 times one month rent if requested within 45 days. Olympia also requires annual rental registration and a five year inspection cycle.
Does Tumwater have its own rent increase rules?
Yes. Tumwater Municipal Code chapter 5.75 requires 180 days notice above 10% and 120 days above 5%, and landlords must give tenants updated written tenant rights summaries every year. The Tumwater registration requirement exempts single-family homes, duplexes, triplexes, manufactured homes and condominiums.
How much notice is required for a rent increase in Washington?
At least 90 days in writing under state law, and longer where a city requires it. In Olympia and Tumwater an increase above 5% requires 120 days and an increase of 10% or more requires 180 days.
Can a landlord raise rent in the first year of a tenancy?
No. HB 1217 prohibits any rent increase during the first 12 months of a tenancy, regardless of the lease type or what the lease says.
Which cap applies if the notice and the increase fall in different years?
The cap in force when the increase takes effect. A notice served in November 2026 for an increase effective February 2027 falls under the 2027 cap of 10%.
What are the penalties for exceeding the Washington rent cap?
A tenant can recover the excess rent paid, up to three months of unlawful rent charges, and reasonable attorney fees and costs. The Attorney General can impose civil penalties of up to $7,500 per violation, and an over-cap increase is unenforceable.
This article is general information for Washington rental owners and tenants, not legal advice. Requirements differ by property and change over time. Confirm your obligations with your attorney or your property manager before serving any rent increase notice.
Sources
- Washington State Department of Commerce, HB 1217 Landlord Resource Center, for the 2026 and 2027 maximum rent increase percentages and the CPI inputs.
- Chapter 59.18 RCW, Residential Landlord-Tenant Act, including RCW 59.18.700 and RCW 59.18.102.
- Tumwater Municipal Code chapter 5.75, Rental Housing Code, and chapter 5.80, Rental Housing Registration.
- Olympia Municipal Code chapter 5.82, Rental Housing Regulations, for notice periods, relocation assistance, registration and inspections.