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Washington State Announces This Year’s Cap on Rent Hikes Under New Law

  • State officials in Washington revealed on a Friday in 2025 that most tenants will face a maximum annual rent increase of 10 percent through the remainder of the year.
  • The cap is based on legislation approved by the state Legislature and enacted by Governor Bob Ferguson in early May 2025, following extensive discussions among policymakers and interested parties.
  • The law limits rent hikes to 7 percent plus inflation, not exceeding 10 percent, exempts newer constructions and subsidized housing, and includes new rules such as longer notice periods and bans raises during a tenancy’s first year.
  • The department based the 10 percent cap on June 2024 inflation data showing rent increases could reach 10.8 percent, prompting a firm maximum; the 2026 cap will be announced in July using updated data.
  • The rent cap aims to provide tenants more predictability amid high housing costs but faces criticism from landlords concerned about investment and ongoing debates on balancing affordability with housing supply.
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bostonrealestateinvestorsassociation.com broke the news in on Friday, May 30, 2025.
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