The Washington Legislature passed a bill this week to cap most annual rent increases at 7% plus inflation, or 10%, whichever is lower. The measure cleared both chambers over the weekend and now awaits the governor’s signature.

If enacted, the new caps would take effect in 2026 and apply to both month-to-month and fixed-term leases. Subsidized housing, new buildings less than 12 years old, and small owner-occupied properties would be exempt.

Landlords would also be required to give tenants notice when raising rent.

Tenant advocates praised the bill as a way to prevent sudden steep rent hikes, while real estate groups warned it could discourage housing development.

Several states and cities, including California, Oregon, and New York City, have enacted their own versions of rent control or rent caps in recent years, typically setting limits between 3% and 10% annually depending on inflation and other factors.