Spokane Rent Cap for 2027 Announced
The Department of Commerce finalized the Consumer Price Index (CPI) data that dictates a Spokane Landlord’s ability to increase rent.
Why We Hit the 10% Cap in 2027
HB 1217, which was signed into law in 2025, governs the ceiling for rent hikes across Washington. Each summer, the state locks in a percentage based on the June CPI data for the Seattle-Tacoma area. The formula is straightforward but rigid: landlords start with a 7% baseline and add the 12-month percent change in the CPI. However, the law mandates that the allowable increase must be the lower of that combined sum or a flat 10%.
In recent years, the calculation usually landed somewhere in the single digits. For 2027, however, with the increase in inflation, the calculation landed north of 10%, meaning the 10% mark was the lesser of the 2 numbers.
"The Department of Commerce just announced the maximum allowable rent increase for 2027 is 10%. That's the hard cap kicking in because 7% plus this year's CPI, came in above 10%."
For a landlord’s planning cycle, this means the 10% limit is the absolute maximum for any increase taking effect in 2027. Legally, this cap applies only after the first full 12 months of tenancy with a specific renter, and it can only be exercised once every 12 months thereafter.
Spokane Landlord Exemptions to HB 1217
While the 10% cap is the new reality for the vast majority of the market, HB 1217 does have a few exemptions. The legislature carved out specific exemptions designed to maintain developer ROI and ensure that the state doesn’t inadvertently stifle the construction of new housing supply.
The following properties remain exempt from this specific 10% cap:
New Construction: Any building that is within its first 12 years of construction. This allows developers to adjust to market debt and operating costs during the most volatile period of a building's lifecycle.
Designated Affordable Housing: Specific units governed by separate low-income housing tax credits or government subsidies.
Small Owner-Occupied Buildings: Certain "mom and pop" properties where the owner resides on the premises, recognizing the different economic pressures on individual homeowners versus institutional landlords.
Spokane Notice Requirements Complicate the Process
Perhaps the most dangerous pitfall for Spokane landlords in 2027 isn't the percentage of the increase, but the timing of the notice. How notices are handled vary greatly depending on being inside Spokane city limits vs outside city limits (areas like Spokane Valley, Liberty Lake etc…)
A 10% rent increase, no matter how correctly calculated, is legally void if the written notice period is not strictly followed. The City of Spokane maintains specific municipal codes that often require longer notice periods than the broader state minimums found in the county or surrounding areas like Spokane Valley.
Case Study for Maximum Rent Increase
To move from policy theory to market reality, we can look at a typical $1,800/month property. Under the 2027 cap, the calculation becomes a hard ceiling rather than a variable negotiation.
Baseline Rent: $1,800
2027 Maximum Allowed (10%): $180
New Monthly Total: $1,980
HB1217 - For the tenant, it defines the worst-case scenario for their housing budget. For the landlord, it provides a clear, if restricted, target for maintaining the property’s revenue stream against rising maintenance and utility costs.
Conclusion: What I See Heading Into 2027 in Spokane
As we look forward to 2027. We are seeing average rents stabilizing with little, to no room for increasing rents, especially with apartments; as the amount of inventory hitting the market is continually growing. Promotional banners in front of large Spokane apartment complexes offering tenant incentives are becoming commonplace in the Spokane market.
Single family homes, especially those with 4+ bedrooms and in the top 25th percentile of rent amounts ($2700+), seem to be the highest in demand. Balancing low vacancy rate with maximum rents is a constant challenge and we keep our fingers on the pulse of the market to ensure our clients are maximizing their ROI while keeping a happy tenant.
