While the city builds for the future, current renters are navigating a new legal landscape. On January 1, 2026, Washington’s first-ever statewide rent stabilization cap (HB 1217) officially entered its first full year of impact. However, for those living within Seattle city limits, local ordinances (SMC) often provide a higher level of protection than state statute.
- Rent Increases: The 9.6% Ceiling
- State Statute (HB 1217): Landlords are now limited to an annual increase of 7% + CPI, not to exceed 10%. For 2026, the Department of Commerce has officially set this maximum at 9.683%.
- City Ordinance: While Seattle currently follows the state cap, advocates are lobbying Mayor Wilson to use the city’s “Home Rule” authority to implement a stricter local cap of 3% or 4%. This sets up a major legal showdown over whether cities can exceed state stabilization standards to prevent local displacement.
- The Notice Period: 90 Days vs. 180 Days
- State Statute: HB 1217 requires landlords to provide 90 days of written notice for any rent increase.
- City Ordinance: Seattle city ordinance still requires a 180-day (six-month) notice for any housing cost increase. If your landlord issues a 9.6% hike today without having notified you six months ago, the increase is legally unenforceable under city rules.
- Late Fees: 1.5% vs. The $10 Limit
- State Statute: Under state law, landlords can charge reasonable late fees, often calculated as a percentage of rent (up to 1.5%). On a $2,500 apartment, that could be $37.50.
- City Ordinance: Seattle has a hard cap on late fees. Regardless of how high your rent is, a landlord can only charge a maximum of $10.00 for late rent.
- Junk Fees and Price-Fixing
- State Statute: Currently offers very few protections against junk fees (like mandatory valet trash or administration fees).
- City Ordinance: Mayor Wilson is moving to finalize a total ban on junk fees. Additionally, Seattle has explicitly banned algorithmic price-fixing software (SMC 7.34), targeting tools like RealPage that allow corporate landlords to coordinate rent hikes.
Comparison: State Statute vs. City Ordinance
| Protection Category | State Statute (HB 1217) | Seattle City Ordinance |
| Max Rent Increase | 9.683% for 2026 | 9.683% (3–4% proposed) |
| Notice Required | 90 days | 180 days |
| Late Fee Limit | ~1.5% of rent | $10.00 flat fee |
| Notice Preparation Fees | Not explicitly banned | Banned |
| Price-Fixing Bots | No specific ban | Banned (SMC 7.34) |
| 1st Year Freeze | No increases allowed | Matches state law |
The Voucher Cliff: A Looming Crisis
Despite these legal protections, the most immediate danger to Seattle’s housing stability is the expiration of federal pandemic-era relief.
- The Crisis: The Emergency Housing Voucher (EHV) program, which supports approximately 650 households in King County, is projected to run out of funds by the end of 2026.
- The Stakes: Without a local stabilization fund carved from the Mayor’s $1 Billion Bond, advocates warn of a new wave of displacement just as the World Cup brings the world’s eyes to Seattle.
- The Safety Net: To prevent this, the City Council has included a $27.6 million targeted investment plan in the 2026 budget to backfill shelter and housing vouchers, while regional leaders are pushing for a $36 million contingency fund to backfill the gap.
Next in this series: We’ll explore why the non-profit sector is at a breaking point.