What HB 1217 does
House Bill 1217 was signed in May 2025 and took effect immediately. It limits rent increases for most residential tenancies to 7% plus the annual change in the Seattle-area consumer price index, or 10%, whichever is lower. The limit applies to the total increase in any 12-month period, so several smaller increases cannot be stacked to get around it.
The state Department of Commerce publishes the figure each summer for the following calendar year, using the June CPI change. The cap was 10% for the rest of 2025, is 9.683% for 2026, and has been set at 10% for 2027. The law also sets a separate, lower limit for manufactured and mobile home communities, which is outside the scope of this guide.
Timing and notice rules
For a buyer, the practical question is whether the building’s increase notices have followed these rules since mid-2025. Increases taken without proper notice or above the cap can be challenged, and that exposure stays with the building.
- No rent increase of any kind during the first 12 months of a tenancy.
- At least 90 days’ written notice before any increase takes effect, up from the shorter notice period that applied before.
- A cap on how much more a landlord can charge for a month-to-month tenancy than for a fixed-term lease on the same unit.
- Tenants may recover excess rent and additional damages, and the Attorney General can enforce the law and seek civil penalties.
Which buildings are exempt
The biggest exemption is for newer construction. A building whose first certificate of occupancy was issued within the past 12 years is outside the cap, and that window rolls forward, so a building completed in 2014 comes under the law in 2026 or 2027 depending on its exact date. Buyers will want the certificate itself, not an estimate.
Other exemptions cover housing operated by public housing authorities and certain nonprofits with regulated rents, properties under enforceable affordability agreements such as tax credit housing, and several owner-occupied arrangements, including a small building of two to four units where the owner lives in one. The owner-occupied exemptions do not apply when the property is held by a REIT, a corporation, or an LLC with a corporate member, which means most investor-owned apartment buildings do not qualify.
The cap limits increases on an existing tenant. When a unit turns over, the owner can generally set the starting rent for the new tenancy, and the first-year freeze then applies to that new tenant.
Seattle and other local rules
State law has long barred cities from adopting their own rent control, but several cities regulate the process around increases. Seattle requires 180 days’ written notice before any increase in housing costs, which includes rent and recurring charges such as parking and storage. When housing costs rise 10% or more in 12 months, Seattle’s Economic Displacement Relocation Assistance ordinance can require the owner to pay relocation assistance to an income-qualified tenant who moves. Seattle also runs a rental registration and inspection program, and an owner cannot raise costs on a unit that is out of compliance with it.
A number of other cities, particularly in the Puget Sound area, have adopted their own notice, fee or relocation rules, and these continue to change. A buyer will check these locally, and it helps if you already know which apply to your building.
How Skyline buys Washington buildings
We confirm each building’s certificate of occupancy date, check where it falls against the 12-year exemption, and underwrite renewals at or below the published cap with market rents on turnover. We build Seattle’s longer notice period and any relocation costs into the model, and we set expenses from your real history. Skyline buys buildings of 5 units and up across the state, occupied and as-is, including buildings with vacancy, deferred maintenance or management trouble.
You can list with a broker, sell off-market, or get a direct offer first to test the market. If you send the deal to us, expect clear feedback within about 48 hours, then a written LOI if it fits. We can structure a seller-carry note or a delayed closing that works with your 1031 exchange timeline.
