Washington State has officially passed a rent cap law, introducing new limits on how much landlords can increase rent each year. Under this legislation, annual rent hikes are restricted to 7% plus inflation, with a maximum cap of 10%, whichever is lower. This new rent control measure represents one of the most significant housing policy shifts Washington has seen in recent years, aimed at addressing the growing concerns around housing affordability and tenant stability.
The Washington rent cap is intended to provide more predictability for renters who have faced sharp and often unexpected increases in housing costs across the state. For tenants, this law may offer much-needed peace of mind—knowing that their housing payments won’t suddenly spike out of reach.
However, not everyone is celebrating the change. Landlords and property owners are raising concerns about how this rent cap may impact their ability to keep up with rising expenses like property taxes, insurance, and ongoing maintenance—especially in high-cost markets like Seattle and Western Washington.
As with any major housing policy, this Washington rent cap law is sparking important conversations and differing perspectives among landlords, tenants, investors, and housing advocates across the state.
Understanding the Rent Cap Legislation
The new law limits rent hikes to 7% plus inflation or a maximum of 10% annually. It also prohibits rent increases during the first year of tenancy.
This statewide rent cap will be in effect for 15 years, after which it is scheduled to sunset—unless renewed by the legislature. However, a separate and more permanent provision of the law applies to manufactured home parks, where rent increases are capped at 5% annually with no expiration date. This aims to protect particularly vulnerable renters—often elderly or low-income residents living in mobile homes—from sudden cost-of-living spikes.
While the intention behind the rent cap law is to create fairness and predictability, its actual impact will vary depending on the property type, location, and ownership structure. Smaller landlords—especially those with just one or two rental units—may feel the squeeze more acutely than large corporate property owners. Meanwhile, renters across Washington, particularly in hot housing markets like King, Snohomish, and Pierce Counties, could see some relief from the steep hikes that have made housing feel increasingly out of reach.
As the law begins to roll out, it’s important to listen to the voices on both sides of the issue. Here’s what tenants and landlords are already saying.
What People Are Saying
Tenant Perspectives:
Many tenants view this legislation as a relief. For instance, a resident of a mobile home park expressed hope that the cap would provide predictability in annual rent increases.
I have been showing a lot of mobile homes in parks lately to an elderly home buyer.
In the last year that we’ve been house hunting, many of the parks have raised their rent from about $1100/month to $1600/month (for the lot rent, or “parking space” for the mobile home). This is a larger than normal increase, but may have been done in anticipation of this legislative change… to create as high a base rent as possible (almost 60% higher than before)… so they don’t “fall behind” once the rate cap sets in.
Thinking about selling a rental? Learn how to navigate the process in our guide to selling a tenant-occupied home.
Click here to read: Selling a Tenant-Occupied Home: A Comprehensive Guide
Landlord Concerns:
Some landlords worry that the cap could limit their ability to cover rising maintenance and property costs.
Some landlords have voiced strong objections to the new rent cap, citing concerns about keeping up with rising costs for maintenance, insurance, and property taxes—especially in older buildings that require frequent repairs. Cash flow is already falling, and the high price of homes in Western Washington keeps many would-be landlords who would love to help tenants, out of the game.
There’s also frustration about increased regulation and what some see as a slippery slope toward more restrictive rent control.
A few investors have even said they’re thinking about selling their rental properties altogether. And hey—if that’s the route you’re considering, I’d be more than happy to help you with that! (Real estate is what I do, after all.)
But from my perspective as both an agent and a landlord, I don’t expect this new cap to cause major market disruption. In most cases, rents rarely rise more than 10% year over year anyway, so this simply formalizes what’s already typical in our area.
Worried about tenant damage? Click here to learn what to do if your tenants damage your Seattle rental property.
Comparisons of Washington’s New Law to Other States:
In Oregon, which implemented a similar law in 2019, some landlords have expressed concerns about the long-term viability of their rental properties under such restrictions.
Oregon’s rent control law, enacted in 2019, caps annual rent increases at 7% plus inflation. While it aimed to stabilize the rental market, its effectiveness remains a topic of debate among stakeholders.
Personally, I have one rental property in Oregon and this law was enacted after I became a landlord there. While I was worried about it at first, we just haven’t seen “natural” rent growth that was approaching that 10% level, so really the tenant market has held us back from raising rents steeply, not the rent-control legislation.
Compared to rent control policies in places like New York and California, Washington’s new law is considered relatively moderate.
In New York City, many apartments are subject to rent stabilization, which strictly limits how much rents can increase each year—often just 1–3%—and can restrict rent increases even between tenants. This has led to landlord’s not maintaining their buildings and tenants staying in homes forever due to below-market rents.
California, under AB 1482, passed in 2019, also limits rent increases to 5% plus inflation, with a cap of 10% annually, and applies only to properties over 15 years old.
Unlike New York’s tightly regulated rent ceilings, Washington’s cap doesn’t fix rents at a set dollar amount—it simply limits the rate of increase, and it sunsets after 15 years (with the exception of a separate, permanent 5% cap for manufactured homes).
Overall, Washington’s approach offers more flexibility to landlords than older East and West Coast models, while still aiming to protect tenants from sudden, sharp increases.
What This Means For Tenants And Landlords
Washington’s rent cap law seeks to balance tenant protections with landlords’ interests.
As the law takes effect, its real-world impacts will become clearer, offering insights into the efficacy of such measures in addressing housing affordability.