Category: Uncategorized

What Was HSTPA?

The Housing Stability and Tenant Protection Act of 2019 (HSTPA) was the most sweeping change to New York’s rent regulation system in 50 years. Signed into law on June 14, 2019, it eliminated virtually every mechanism landlords had used to increase rents beyond annual guidelines, exit the rent stabilization system, or recover capital investment costs.

HSTPA was not a minor adjustment. It was a fundamental restructuring of the economic framework for rent-stabilized housing in New York. Before HSTPA, rent stabilization was a system that units could eventually exit through vacancy decontrol or high-income deregulation. After HSTPA, rent stabilization is permanent.

If you own rent-stabilized property in New York, everything that follows is the law you operate under today. There is no sunset date. There is no legislative effort with realistic prospects of repeal. This is the permanent framework.

The Complete Before-and-After

Vacancy Bonus

Feature	Before HSTPA	After HSTPA
Vacancy increase	20% automatic increase when a unit became vacant (longevity bonuses also applied: 0.6% per year of prior tenancy for 1-year leases, 1.2% for 2-year leases)	Eliminated entirely. No vacancy increase of any kind. The legal regulated rent carries over to the next tenant at the same amount.

Impact: Before HSTPA, a landlord with a unit renting at $1,500 could set the new tenant’s rent at $1,800 (20% vacancy bonus) plus longevity bonuses. Now, the new tenant’s starting rent is $1,500 plus only the current RGB guideline increase. Over multiple turnovers, this eliminates the primary mechanism landlords used to bring stabilized rents closer to market rates.

Vacancy Decontrol

Feature	Before HSTPA	After HSTPA
Deregulation threshold	When legal rent reached $2,774.76 (adjusted periodically) and the unit became vacant, the unit exited rent stabilization permanently	Eliminated entirely. No unit can exit rent stabilization based on rent level, regardless of how high the legal rent becomes.

Impact: This was the biggest structural change. Before HSTPA, the rent-stabilized stock was shrinking by an estimated 25,000-30,000 units per year as high-rent units became vacant and deregulated. After HSTPA, the stock is essentially permanent. A unit that is rent-stabilized today will be rent-stabilized in perpetuity.

High-Income Deregulation (Luxury Decontrol)

Feature	Before HSTPA	After HSTPA
Income-based deregulation	Landlord could petition to deregulate a unit if household income exceeded $200,000 for two consecutive years AND the rent was above the deregulation threshold	Eliminated entirely. No deregulation based on tenant income, regardless of how much the tenant earns.

Impact: High-income deregulation was used sparingly (it required the landlord to know or discover the tenant’s income), but it was a path to deregulation. It is now gone. A tenant earning $500,000 per year in a rent-stabilized apartment paying $1,200 per month retains full rent stabilization protections.

Preferential Rent

Feature	Before HSTPA	After HSTPA
Preferential rent treatment	If a landlord charged below the legal regulated rent (a “preferential” rent), the landlord could revoke the preference at any lease renewal and charge up to the full legal rent	Locked in. The preferential rent becomes the base for all future RGB increases. The landlord can only increase from the preferential rent, not from the legal regulated rent.

Impact: Before HSTPA, landlords offered preferential rents to attract tenants in slow markets, knowing they could jump to the legal rent later. Now, that strategy backfires. If you offered a preferential rent of $1,200 on a unit with a legal rent of $1,800, your future increases are calculated on $1,200, not $1,800. The $600 gap is permanently lost.

Exception: Preferential rents may still be reverted to legal rent when the apartment is vacated and a new tenant moves in. The lock-in applies during the tenancy, not across tenancies.

Individual Apartment Improvements (IAIs)

Feature	Before HSTPA	After HSTPA
Spending cap	$15,000 with no time limit — could spend $15K per vacancy indefinitely, each time adding a permanent rent increase	Tier 1: $30,000 over a rolling 15-year period Tier 2: $50,000 over 15 years (for tenancies of 25+ years or vacancies between June 14, 2022 and June 15, 2024)
Rent increase calculation	1/40th of improvement cost (buildings with 35+ units) or 1/60th (under 35 units) added permanently to rent	1/168th (35+ units) or 1/180th (under 35 units) added to rent for 15 years only, then the increase expires
Duration	Permanent	15 years — the IAI increase is removed from the legal rent after 15 years

Impact: IAIs were the primary tool for increasing rents on stabilized units. Before HSTPA, a $15,000 kitchen renovation on a unit in a building with fewer than 35 units would add $250/month permanently (1/60th). After HSTPA, a $25,000 kitchen renovation adds $138.89/month (1/180th) for 15 years, then drops off. The economics of renovation have fundamentally changed. See our detailed guide on MCI and IAI Caps After HSTPA.

Major Capital Improvements (MCIs)

Feature	Before HSTPA	After HSTPA
Annual cap on tenant’s rent increase	6% of tenant’s rent per year	2% of tenant’s rent per year
Duration	Permanent — MCI increases were added to legal rent indefinitely	30 years — MCI increases expire and are removed from legal rent after 30 years
Phase-in period	MCI increases could be collected at up to 6% of rent annually until the full increase was applied	Capped at 2% of rent annually, extending the phase-in period significantly

Impact: MCIs remain available, but the economic return is dramatically reduced. A $500,000 boiler replacement in a 50-unit building previously generated a permanent rent increase phased in at 6% per year per tenant. Now, the same improvement generates a temporary increase (30-year expiration) phased in at only 2% per year. For many buildings, the MCI rent increase no longer covers the financing cost of the improvement.

Security Deposits

Feature	Before HSTPA	After HSTPA
Maximum deposit	No statutory limit (typically 1-2 months; some landlords collected 2-3 months)	1 month’s rent maximum. No additional deposits (pet deposits, last month’s rent, key deposits) are permitted.
Interest	Required for buildings with 6+ units	Required for buildings with 6+ units (unchanged)
Return timeline	Reasonable time	14 days with itemized statement of deductions

For the complete guide on security deposit rules, see our article on NYC Security Deposits, Late Fees, and Application Fees.

Late Fees

Feature	Before HSTPA	After HSTPA
Maximum late fee	No statutory cap (lease-defined; some landlords charged 5-10% with no cap)	$50 or 5% of monthly rent, whichever is LESS. Cannot be charged until rent is at least 5 days late.

Application Fees

Feature	Before HSTPA	After HSTPA
Maximum fee	No statutory cap (landlords commonly charged $50-$150+)	$20 maximum. This must cover the actual cost of a background check and/or credit check. No additional charges for applications.

Rent Overcharge Claims

Feature	Before HSTPA	After HSTPA
Lookback period	4 years — only rent history within the prior 4 years could be examined to determine overcharges	6 years — the lookback period for overcharge claims is now 6 years. Additionally, DHCR can examine the full rent history (beyond 6 years) if there is evidence of fraud.
Treble damages	Available only if the overcharge was willful	Available if the overcharge was willful (same standard, but the longer lookback period increases exposure)

Lease Renewal Notice

Feature	Before HSTPA	After HSTPA
Landlord notice to tenant	90-150 days before lease expiration	90-150 days before lease expiration (unchanged)
Tenant response time	60 days from notice	60 days from notice (unchanged)
Late notice penalty	Tenant could remain on same terms if landlord failed to provide timely notice	Same — but HSTPA strengthened the tenant’s position by eliminating the landlord’s ability to discontinue a preferential rent at renewal

What Landlords Lost — The Summary

Here is the complete list of mechanisms that HSTPA eliminated or restricted, and the revenue impact:

Mechanism	Status	Revenue Impact
20% vacancy bonus	Eliminated	Loss of ~$300-600/month per turnover on typical unit
Vacancy decontrol ($2,774)	Eliminated	Units permanently locked in stabilization
High-income deregulation ($200K)	Eliminated	No path to market-rate conversion
Preferential rent revocation	Locked	Gap between preferential and legal rent permanently lost
Unlimited IAI spending	Capped ($30K-$50K/15yr)	~60-70% reduction in per-unit renovation ROI
Permanent IAI increases	15-year expiration	IAI increases are temporary, not permanent
6% MCI phase-in	Reduced to 2%	Slower cost recovery, reduced incentive for building improvements
Permanent MCI increases	30-year expiration	MCI increases eventually expire
2+ month security deposits	Capped at 1 month	Reduced security against damage/nonpayment
Unregulated late fees	Capped at $50/5%	Minimal revenue impact, but reduced leverage
Unregulated application fees	Capped at $20	Cannot recover full screening costs

What Landlords Can Still Do

HSTPA restricted many tools, but it did not eliminate all avenues for increasing rental income or managing stabilized properties effectively:

• RGB annual increases: You can still apply the annual RGB guideline increase to every lease renewal. In years like 2024-2025 (3.0% for 1-year leases), this provides real revenue growth. In freeze years like 2026-2027, it does not.
• IAIs within the caps: You can still invest up to $30,000 (or $50,000 Tier 2) per unit over 15 years and add the calculated increase to rent for 15 years. Strategic renovations that maximize the IAI benefit are still worthwhile.
• MCIs: Building-wide improvements still qualify for MCI increases, albeit capped at 2% per year with a 30-year expiration.
• Hardship applications: If your building is genuinely operating at a loss, you can file a hardship application with HCR for above-guideline increases.
• Market-rate rent on new tenancies (with no vacancy bonus): While you cannot add a vacancy bonus, you can charge the legal regulated rent (with the current RGB increase) to a new tenant. The key is that the legal rent is now lower than it would have been under the old system.

“HSTPA did not just change the rules — it changed the entire business model for rent-stabilized housing. Before 2019, landlords could plan for eventual deregulation and use vacancy bonuses to approach market rents over time. That model is gone. The landlords who have adapted are the ones who treat stabilized housing as a permanent, long-term-hold asset class with different return expectations.”

— Rachid Abadli, Founder & CEO at LeaseBase

Frequently Asked Questions

Can HSTPA be repealed?

Theoretically, yes — any law can be amended or repealed by the legislature. Practically, repeal is extremely unlikely. HSTPA passed with strong legislative support, tenant advocacy organizations are well-organized, and there is no significant political movement to roll it back. Landlords should plan as if HSTPA is permanent.

Are there any legal challenges to HSTPA?

Several legal challenges have been filed, primarily arguing that HSTPA’s restrictions constitute an unconstitutional taking of property without just compensation. As of mid-2026, no court has struck down HSTPA or any of its provisions. Federal courts, including the Second Circuit Court of Appeals, have upheld the law’s constitutionality.

Does HSTPA apply to rent-controlled apartments?

HSTPA primarily addresses rent stabilization, not the older rent control system. Rent-controlled apartments (pre-1947 buildings where the tenant has continuously resided since before July 1, 1971) have their own rules set by the Maximum Base Rent system. However, HSTPA’s security deposit, late fee, and application fee limits apply to all residential rentals, including rent-controlled units.

Can I still charge a preferential rent to a new tenant?

Yes. You can offer a preferential rent below the legal regulated rent. However, understand that the preferential rent becomes the base for future RGB increases during that tenancy. When the tenant leaves and a new tenant moves in, you can set the rent at the legal regulated rent (not the preferential rent). But the legal rent itself will be lower than it would have been under the old system because of the locked-in preferential rent during the prior tenancy.

What happens to IAI increases after 15 years?

The IAI portion of the legal regulated rent is removed. If a unit’s legal rent is $1,800, of which $150 is from an IAI, the legal rent drops to $1,650 when the 15-year period expires. However, any RGB guideline increases that were applied on top of the IAI amount during those 15 years are also partially reduced, creating a compounding reduction.

Does HSTPA affect buildings outside NYC?

Yes. HSTPA applies to all rent-stabilized units in New York State, including those in ETPA municipalities in Nassau, Westchester, Rockland, and Ulster counties. The security deposit ($1 month max), late fee ($50/5%), and application fee ($20) limits apply to all residential rentals statewide, regardless of stabilization status.

Navigate HSTPA Compliance With Confidence

HSTPA’s changes are complex, but they are knowable. The landlords who struggle are the ones who don’t track their legal rents accurately, miss IAI or MCI expiration dates, or fail to account for preferential rent lockdowns in their financial planning.

LeaseBase’s NYC Rent Stabilization Calculator tracks every component of your legal rent — RGB increases, IAI additions and expirations, MCI phase-ins and expirations, and preferential rent calculations. You always know your exact legal rent, your maximum allowable increase, and when any temporary increases are scheduled to drop off.

Related Reading

• NYC Rent Freeze 2026-27: What the 0% RGB Increase Means
• MCI and IAI Caps After HSTPA
• New York Good Cause Eviction Law: The Complete Guide
• Rent Stabilization vs Good Cause Eviction: Which Law Applies?
• Is Your NY Rental Exempt from Good Cause?
• NYC Security Deposits, Late Fees, and Application Fees
• Good Cause Eviction Opt-In Tracker

← New York Compliance Hub

Two Systems, One State: Understanding the Overlap

New York landlords now operate under two major tenant protection frameworks: rent stabilization (dating to 1969, expanded by HSTPA in 2019) and Good Cause Eviction (enacted in 2024). These are separate systems with different rules, different coverage, and different mechanisms for setting rent increases.

The single most important thing to understand is this: if your unit is rent-stabilized, Good Cause Eviction does not apply to it. Rent-stabilized units are explicitly exempt from GCE because they already have their own comprehensive tenant protections. The confusion arises because the two systems serve similar purposes but through different mechanisms.

This guide provides a clear decision tree for determining which law governs your building, a side-by-side comparison of both systems, and guidance for buildings that have units under different regulatory regimes.

The Decision Tree: Which Law Applies to Your Unit?

For each unit in your portfolio, work through these questions in order:

Step 1: Is the unit rent-stabilized or rent-controlled?

Check your building’s registration with HCR (Homes and Community Renewal). A unit is rent-stabilized if:

• The building has 6+ units and was built before January 1, 1974 (in NYC), OR
• The building received a tax abatement (421-a, J-51) that required rent stabilization, OR
• The building is in an Emergency Tenant Protection Act (ETPA) municipality outside NYC (Nassau, Westchester, Rockland, Ulster counties)

If yes: Rent stabilization governs. GCE does not apply. The Rent Guidelines Board sets your annual increase. Stop here.

If no: Proceed to Step 2.

Step 2: Is the unit exempt from Good Cause Eviction?

Check all GCE exemptions: 10-unit statewide count, 245% FMR threshold, new construction (30-year CoO), owner-occupied under 10 units, condo/co-op.

If exempt: Neither rent stabilization nor GCE applies. The unit is unregulated — you can set rents and terminate tenancies subject only to general landlord-tenant law (Real Property Law notice requirements).

If not exempt: Proceed to Step 3.

Step 3: Is the unit in NYC or an opt-in municipality?

If yes: Good Cause Eviction applies. Your rent increases are subject to the CPI + 5% or 10% presumptive cap, and you need just cause to evict or non-renew.

If no: GCE does not apply (municipality has not opted in). The unit is unregulated.

Side-by-Side Comparison

Feature	Rent Stabilization	Good Cause Eviction	Unregulated
Rent increase mechanism	RGB sets annual percentage (voted each June)	CPI + 5% or 10%, whichever is less (rebuttable presumption)	No cap — market determines rent
2026-27 increase	0% (Order #58)	~7-8.5% (depending on CPI)	Unlimited
Vacancy reset	No — HSTPA eliminated vacancy decontrol; rent carries over	Yes — landlord can set any rent for new tenant	Yes
Lease renewal right	Yes — mandatory renewal	Yes — unless just cause for non-renewal	No — lease expires per its terms
Eviction grounds	Specific grounds (non-primary residence, owner occupancy, etc.)	11 enumerated grounds	Any lawful reason (with proper notice)
Notice to terminate	Building-specific (30-120 days depending on program)	30/60/90 days by tenancy length	30/60/90 days per RPL 226-c
Registration required	Yes — annual DHCR registration	No	No
Capital improvement recovery	MCI (2%/year, 30-year expiration) and IAI ($30K-$50K caps)	Can justify above-cap increase with documentation	No restrictions
Coverage area	NYC + ETPA municipalities (~40 towns in Nassau, Westchester, Rockland, Ulster)	NYC (auto) + ~19 opt-in municipalities	Everywhere else
Sunset date	None — permanent (HSTPA removed sunset)	June 15, 2034	N/A
Overcharge penalties	Treble damages (6-year lookback under HSTPA)	Affirmative defense in eviction proceedings	N/A
Security deposit	1 month max (General Obligations Law)	1 month max (General Obligations Law)	1 month max (General Obligations Law)

Understanding HSTPA and Why Rent Stabilization Is Now Permanent

The Housing Stability and Tenant Protection Act of 2019 (HSTPA) fundamentally changed rent stabilization by eliminating every mechanism that had allowed units to exit the system:

• Vacancy decontrol (eliminated) — Previously, units could become deregulated when rent exceeded a threshold ($2,774.76) and the unit became vacant. This is gone.
• High-income deregulation (eliminated) — Previously, landlords could petition to deregulate a unit if the household income exceeded $200,000 for two consecutive years and the rent was above the threshold. This is gone.
• Vacancy bonus (eliminated) — Landlords could previously add a 20% vacancy increase when a unit turned over. This is gone.
• Preferential rent (locked) — Landlords who charged below the legal regulated rent now have that lower rent become the base for future increases.

The result: the rent-stabilized stock is permanent and growing. Units enter the system (through tax abatements or ETPA) but virtually never leave it. This is why approximately 1 million apartments remain rent-stabilized in New York City.

For the complete before-and-after breakdown, see our HSTPA guide.

When Buildings Have BOTH Systems

Some buildings have units under different regulatory regimes. This happens when:

Tax Abatement Buildings

Buildings that received 421-a tax abatements were required to register units as rent-stabilized for the duration of the abatement. After the abatement expires:

• Units occupied by tenants who were in place during the abatement period retain their rent-stabilized status (under HSTPA, they cannot be deregulated)
• Units that become vacant after the abatement expires may lose their stabilized status (this depends on the specific abatement terms and when it was granted)
• Non-stabilized units in the building could become subject to GCE

Mixed Pre-1974 and Post-1974 Construction

If a building was expanded — for example, additional floors added after 1974 to a pre-1974 building — the original units may be rent-stabilized while the newer units are not. The non-stabilized units could be subject to GCE if no other exemption applies.

Buildings With Fewer Than 6 Units

In NYC, rent stabilization generally applies to buildings with 6+ units built before 1974. A 4-unit building built in 1960 is not rent-stabilized. If the owner has more than 10 units statewide and the rent is below 245% FMR, those 4 units are subject to GCE.

The Practical Impact for Landlords

Rent-Stabilized Landlords

If all your units are rent-stabilized, GCE is not directly relevant to your operations. Your primary concern is the RGB annual vote and HSTPA’s restrictions on MCIs, IAIs, and preferential rent. See our guides on:

• The 2026-27 Rent Freeze
• MCI and IAI Caps After HSTPA

Market-Rate Landlords in NYC

If you own non-stabilized apartments in NYC (or an opt-in municipality) and don’t qualify for a GCE exemption, you now face rent increase constraints for the first time. The CPI + 5% or 10% cap is more generous than the RGB guidelines (which have ranged from 0% to 5.25% in recent years), but it is a meaningful change from the unrestricted market-rate increases you could previously charge.

Landlords With Mixed Portfolios

If you have both stabilized and non-stabilized units, you need to track two different systems:

Unit Type	Rent Increase Governed By	Eviction Governed By	Registration
Rent-stabilized	RGB order	Rent Stabilization Code	Annual DHCR registration
Market-rate (GCE-covered)	CPI + 5% or 10%	GCE just cause grounds	None required
Market-rate (GCE-exempt)	No cap	General landlord-tenant law	None required

ETPA vs. GCE: Outside NYC

Outside New York City, there are two separate opt-in programs that municipalities can adopt:

Emergency Tenant Protection Act (ETPA)

ETPA extends rent stabilization to municipalities outside NYC. Approximately 40 municipalities in Nassau, Westchester, Rockland, and Ulster counties have adopted ETPA. In ETPA municipalities, eligible buildings (6+ units, built before 1974) are subject to the same rent stabilization rules as NYC buildings, including RGB increases.

Good Cause Eviction (GCE) Opt-In

GCE is a separate opt-in. A municipality can adopt ETPA, GCE, both, or neither. They serve different populations: ETPA covers buildings that qualify for rent stabilization, while GCE covers everything else that doesn’t qualify for an exemption.

A municipality with both ETPA and GCE provides the broadest tenant protections: stabilized units follow RGB rules, and non-stabilized units are subject to GCE’s rent increase and eviction restrictions.

For the current list of GCE opt-in municipalities, see our Good Cause Eviction Opt-In Tracker.

“The question I hear most from New York landlords is: ‘Which law applies to my building?’ The answer is almost always one or the other — never both at the same time for the same unit. But for buildings with mixed unit types, you may need to manage both systems simultaneously. That operational complexity is real.”

— Rachid Abadli, Founder & CEO at LeaseBase

Frequently Asked Questions

Can a unit be subject to both rent stabilization and Good Cause Eviction?

No. Rent-stabilized units are explicitly exempt from GCE. A unit is governed by one system or the other, never both simultaneously.

Is GCE’s rent increase cap stricter than rent stabilization?

Generally, no. The RGB has set increases ranging from 0% to 5.25% in recent years. GCE’s presumptive cap of CPI + 5% (or 10%) typically allows larger increases than the RGB grants. However, GCE’s cap is a rebuttable presumption, while the RGB increase is a hard cap.

If my building exits a 421-a abatement, do the units become subject to GCE?

It depends. Units that retain rent-stabilized status after the abatement expires remain exempt from GCE. Units that lose stabilized status may become subject to GCE if no other exemption applies. The specifics depend on the abatement’s terms and the HSTPA deregulation rules.

My building has 4 apartments and was built in 1950. Is it rent-stabilized?

In NYC, rent stabilization generally applies to buildings with 6 or more units. A 4-unit building built in 1950 is not rent-stabilized (unless it received a tax abatement that triggered stabilization). However, if the owner has more than 10 units statewide and the property is in NYC or an opt-in municipality, GCE may apply.

What happens to GCE-covered units if the law sunsets in 2034?

If GCE expires and is not renewed, covered units revert to unregulated status. Landlords would regain full market-rate pricing power and traditional eviction rights (subject to general landlord-tenant law). However, most observers expect GCE to be renewed or made permanent before the sunset date.

Does GCE apply to Section 8 voucher tenants in market-rate buildings?

GCE applies to the unit, not the tenant. If the unit is in a building that is subject to GCE (not exempt), the GCE protections apply regardless of whether the tenant uses a Section 8 voucher. However, Section 8 has its own rules about rent reasonableness and inspection requirements that also apply.

Know Which System Governs Your Building

Managing compliance across two regulatory systems is operationally complex but necessary. The first step is always knowing which system applies to each unit in your portfolio.

LeaseBase’s NY Good Cause Calculator evaluates each property against all GCE exemptions and identifies whether rent stabilization, GCE, or neither applies. Our Rent Stabilization Calculator tracks RGB increases, legal rents, and MCI/IAI adjustments for stabilized units. Together, they give you a complete compliance picture across your entire portfolio.

Related Reading

• New York Good Cause Eviction Law: The Complete Guide
• Is Your NY Rental Exempt from Good Cause?
• HSTPA Changed Everything: What NY Landlords Lost in 2019
• NYC Rent Freeze 2026-27: What the 0% RGB Increase Means
• MCI and IAI Caps After HSTPA
• NYC Security Deposits, Late Fees, and Application Fees
• Good Cause Eviction Opt-In Tracker

← New York Compliance Hub

Why Exemptions Matter

New York’s Good Cause Eviction (GCE) law restricts landlords’ ability to raise rents and evict tenants. But the law includes several important exemptions that remove specific properties from its coverage entirely. If your property qualifies for an exemption, GCE’s rent increase caps and eviction restrictions do not apply to it.

Understanding these exemptions is not optional — it is foundational to knowing your rights and obligations as a New York landlord. This guide breaks down every exemption in detail, including the edge cases that trip up property owners.

Exemption 1: The 10-Unit Rule

The most commonly discussed exemption is the 10-unit rule. If an owner holds 10 or fewer residential rental units statewide, all of those units are exempt from Good Cause Eviction.

How to Count Your Units

This is where most landlords get confused. The count is based on:

• Statewide total — Every residential rental unit you own anywhere in New York State counts, not just units in a single building or municipality
• Beneficial ownership — Units held through LLCs, partnerships, trusts, and other entities are attributed to the beneficial owner(s)
• Related entities — If you and a family member co-own properties through different LLCs but control them together, those units may be aggregated

Examples

Scenario	Total Units	Exempt?
You own a 6-unit building in Queens	6	Yes — under 10
You own a 4-unit in Brooklyn + 3-unit in Bronx	7	Yes — under 10
You own a 6-unit in Queens + 5-unit in Albany	11	No — over 10
Your LLC owns 4 units; your spouse’s LLC owns 4 units (same beneficial ownership)	8	Yes — under 10 (combined)
Your LLC owns 6 units; an unrelated partner’s LLC owns 6 units	Depends	Depends on beneficial ownership analysis

The LLC Ownership Question

Many landlords hold properties through LLCs for liability protection. Under GCE, the law looks through the LLC to the beneficial owner. If you are the sole or controlling member of multiple LLCs, units across all those LLCs are counted together.

The law does not provide bright-line rules for every ownership structure. If you have a complex multi-entity portfolio, consult a real estate attorney to determine your unit count for GCE purposes.

What Counts as a “Unit”?

The law counts residential rental units. This includes:

• Traditional apartments in multi-family buildings
• Accessory dwelling units (ADUs) that are rented out
• Single-family homes that are rented (each house = 1 unit)

It does not include:

• Commercial units (storefronts, offices) in mixed-use buildings
• Units you occupy as your own residence
• Vacant units that are not on the rental market

Exemption 2: The 245% Fair Market Rent Threshold

Individual units where the rent equals or exceeds 245% of the HUD Fair Market Rent (FMR) for the applicable county and unit size are exempt from Good Cause Eviction. This exemption is evaluated on a unit-by-unit basis.

2024 FMR Thresholds at 245% (Selected NY Counties)

County	Studio (245%)	1-BR (245%)	2-BR (245%)	3-BR (245%)	4-BR (245%)
New York (Manhattan)	$4,655	$4,753	$5,317	$6,748	$7,252
Kings (Brooklyn)	$4,655	$4,753	$5,317	$6,748	$7,252
Queens	$4,655	$4,753	$5,317	$6,748	$7,252
Bronx	$4,655	$4,753	$5,317	$6,748	$7,252
Richmond (Staten Island)	$4,655	$4,753	$5,317	$6,748	$7,252
Westchester	$4,655	$4,753	$5,317	$6,748	$7,252
Nassau	$4,655	$4,753	$5,317	$6,748	$7,252
Suffolk	$4,312	$4,459	$5,390	$6,958	$7,840
Albany	$2,254	$2,450	$2,989	$3,724	$4,116
Monroe (Rochester)	$2,303	$2,450	$3,038	$3,871	$4,312
Onondaga (Syracuse)	$2,058	$2,254	$2,793	$3,528	$3,920
Dutchess	$3,185	$3,381	$4,116	$5,145	$5,733
Ulster	$2,744	$2,842	$3,528	$4,508	$4,949
Orange	$3,087	$3,332	$4,067	$5,047	$5,586
Tompkins (Ithaca)	$2,548	$2,695	$3,234	$4,116	$4,753

Note: FMR values are updated annually by HUD. The values above are based on the most recent published FMR data. Always verify current thresholds before making compliance decisions. Use our NY Good Cause Calculator for up-to-date thresholds.

How to Use the FMR Threshold

Compare your unit’s current rent to the 245% FMR for the appropriate county and bedroom count. If your rent meets or exceeds the threshold, the unit is exempt from GCE.

Important considerations:

• The threshold is evaluated at the time of the lease renewal or proposed rent increase
• If you raise rent above the FMR threshold during a tenancy, the unit becomes exempt going forward
• If FMR increases and your rent drops below 245%, the unit could become covered again
• The exemption applies per unit, not per building — you could have both covered and exempt units in the same building

Who This Exemption Helps

The 245% FMR threshold primarily benefits landlords with luxury or high-rent apartments, particularly in:

• Manhattan (where many market-rate apartments exceed the threshold)
• Brooklyn brownstone neighborhoods (Cobble Hill, Carroll Gardens, Park Slope)
• Newer luxury buildings with high starting rents

In upstate cities like Albany, Rochester, and Syracuse, the thresholds are much lower, meaning more units will be covered by GCE even at moderate rent levels.

Exemption 3: New Construction (30-Year Window)

Buildings that received their first Certificate of Occupancy (CoO) less than 30 years ago are exempt from Good Cause Eviction. This is designed to avoid discouraging new housing construction.

Key Details

• The 30-year clock starts from the original Certificate of Occupancy, not from any subsequent alteration or renovation
• A gut renovation of an existing building does not restart the clock unless the building receives a new initial Certificate of Occupancy
• If your building’s CoO was issued in 2000, the exemption runs until 2030
• If your building’s CoO was issued in 1990, the exemption expired in 2020 and GCE now applies

Why 30 Years?

The 30-year window mirrors the new construction exemption in New York City’s rent stabilization system. The theory is that developers need certainty of rental income to justify construction financing, and a 30-year window provides that certainty while eventually bringing the building under tenant protections.

Exemption 4: Owner-Occupied Buildings Under 10 Units

If the owner occupies a unit in the building as their primary residence and the building has fewer than 10 units, the entire building is exempt from Good Cause Eviction.

Requirements

• The owner must actually live in the building as their primary residence — not just maintain a mailing address there
• The building must have fewer than 10 residential units total
• This exemption applies to the building, not to the owner’s total portfolio — so you could own more than 10 units total but still have this exemption for the building where you live

Common Scenarios

Scenario	Exempt?
You live in your 3-family house and rent out 2 units	Yes
You live in a 12-unit building you own	No — 10+ units
You own a 6-unit building but live elsewhere	Not under this exemption (check 10-unit rule)
Your LLC owns the building and you live in it (under 10 units)	Yes, if you are the beneficial owner of the LLC

Exemption 5: Condominiums and Cooperatives

Individually owned condominium units and cooperative apartments are exempt from Good Cause Eviction. This applies to the individual unit owner, not to the building as a whole.

If a condo owner rents out their unit, GCE does not apply to that rental. The theory is that condo and co-op owners are individual homeowners, not commercial landlords, and the law was designed to regulate commercial rental operations.

Exemption 6: Already Regulated Units

Units already subject to one of the following regulatory systems are exempt from GCE:

• Rent stabilization (NYC and ETPA municipalities)
• Rent control (the older, pre-1971 system)
• Mitchell-Lama housing
• LIHTC (Low-Income Housing Tax Credit) projects
• Section 8 project-based contracts
• HUD-regulated housing
• Other regulatory agreements that include tenant protections

The rationale is simple: these units already have their own rent increase caps and eviction protections. Layering GCE on top would create conflicting regulatory requirements.

For a comparison of rent stabilization and GCE protections, see our guide on Rent Stabilization vs Good Cause Eviction.

Edge Cases and Complications

Mixed Buildings

A building can have both GCE-covered and exempt units. For example, a 20-unit building where 5 units are rent-stabilized and 15 are market-rate: the stabilized units are exempt from GCE (they have their own protections), while the market-rate units are subject to GCE (assuming no other exemption applies).

LLC Structures and Beneficial Ownership

The law’s focus on beneficial ownership creates complexity for landlords who use multiple LLCs. Key questions that remain subject to interpretation:

• If two unrelated individuals each own 50% of an LLC that holds 8 units, and each also personally owns 4 units, what is each person’s unit count? The answer likely depends on whether the LLC units are attributed to both members (giving each 12 units) or split proportionally (giving each 8 total).
• If a parent and adult child each own separate LLCs, are their units aggregated? Only if they are deemed to have common beneficial ownership or control.

These questions do not have definitive answers yet. As GCE litigation develops, courts will provide guidance. In the meantime, landlords with complex ownership structures should err on the side of compliance or seek legal counsel.

Properties Straddling the 10-Unit Threshold

If you currently own 10 units and acquire one more, all 11 units become subject to GCE (assuming no other exemption applies). Conversely, if you sell a property and drop to 10 or fewer units, the remaining units become exempt.

This creates a practical consideration for portfolio growth: acquiring the 11th unit has regulatory implications beyond the new property itself.

FMR Fluctuations

Because the 245% FMR threshold changes annually with HUD’s FMR publication, a unit that is exempt this year could become covered next year if FMR increases faster than the unit’s rent. Landlords relying on this exemption should track FMR annually.

“The 10-unit rule sounds simple, but it is not. The statewide count, beneficial ownership lookthrough, and LLC aggregation questions make this the most complex exemption in the Good Cause Eviction law. If you are anywhere near the threshold, get a definitive legal opinion before assuming you are exempt.”

— Rachid Abadli, Founder & CEO at LeaseBase

How to Determine Your GCE Status

Follow this decision tree for each property:

1. Is the unit rent-stabilized, rent-controlled, or under another regulatory agreement? If yes → Exempt from GCE.
2. Is the building new construction (CoO less than 30 years old)? If yes → Exempt from GCE.
3. Is the unit a condo or co-op? If yes → Exempt from GCE.
4. Does the owner occupy the building and is it under 10 units? If yes → Exempt from GCE.
5. Does the owner hold 10 or fewer residential rental units statewide? If yes → Exempt from GCE.
6. Does the unit’s rent equal or exceed 245% of FMR? If yes → Exempt from GCE.
7. Is the property in NYC or an opt-in municipality? If yes → GCE applies. If no → GCE does not apply (regardless of exemptions).

Use our NY Good Cause Calculator to run through this analysis automatically for your properties.

Frequently Asked Questions

Does the 10-unit count include units in other states?

No. The 10-unit count is for residential rental units in New York State only. Properties you own in other states do not count.

If I own 10 units and sell one, am I immediately exempt?

Yes. Once your statewide unit count drops to 10 or fewer, the remaining units become exempt from GCE (assuming no other exemption already applies or doesn’t apply).

Does a vacant unit count toward the 10-unit threshold?

If the unit is a residential rental unit that is temporarily vacant (between tenants), it likely counts. If the unit has been permanently withdrawn from the rental market, it may not count. The law does not provide explicit guidance on this point.

My building has commercial units on the ground floor. Do those count?

No. Only residential rental units count toward the 10-unit threshold. Commercial spaces are excluded.

I am a condo owner who rents out my unit. Does GCE apply?

No. Individually owned condominium units are exempt from Good Cause Eviction, regardless of whether the owner rents them out.

What if my rent is just under the 245% FMR threshold?

If your rent is below 245% of FMR, the unit is not exempt under this provision. However, you may raise rent to above the threshold (subject to GCE’s rent increase reasonableness standard if the unit is currently covered), at which point the unit would become exempt for future lease renewals.

Track Your Exemption Status Automatically

GCE exemption status is not static. Unit counts change as you buy or sell properties. FMR thresholds change annually. New construction exemptions expire after 30 years. What is exempt today may not be exempt next year.

LeaseBase’s NY Good Cause Calculator evaluates every exemption for each of your properties, using current FMR data and your actual unit count. You always know which units are covered and which are exempt — and you get alerted when a status change is approaching.

Related Reading

• New York Good Cause Eviction Law: The Complete Guide
• Rent Stabilization vs Good Cause Eviction: Which Law Applies?
• HSTPA Changed Everything: What NY Landlords Lost in 2019
• NYC Rent Freeze 2026-27: What the 0% RGB Increase Means
• MCI and IAI Caps After HSTPA
• Good Cause Eviction Opt-In Tracker

← New York Compliance Hub

What Happened: RGB Order #58 Explained

On June 27, 2026, the New York City Rent Guidelines Board (RGB) voted 7-1 to approve a 0% rent increase for both one-year and two-year lease renewals on rent-stabilized apartments. This is Order #58, and it takes effect for leases beginning on or after October 1, 2026 through September 30, 2027.

This means that if you own a rent-stabilized apartment in New York City, you cannot raise the rent at all when your tenant’s lease comes up for renewal during this period. Not 1%. Not 2%. Zero. The rent stays exactly where it is.

For tenants, this is welcome relief in a city where median rents have climbed past $3,500 per month for market-rate apartments. For landlords, it represents a year of frozen revenue while operating costs — property taxes, insurance premiums, fuel, labor, and maintenance — continue to rise.

How the RGB Sets Rent Increases

The Rent Guidelines Board is a nine-member body appointed by the Mayor. It includes two tenant representatives, two owner representatives, and five public members. Each year, the RGB holds public hearings, reviews income and expense data from the RGB research staff, and votes on allowable increases for rent-stabilized apartments.

The RGB’s decision is influenced by several factors:

• Price Index of Operating Costs (PIOC) — The RGB’s proprietary measure of landlord operating cost changes
• Income and Expense Studies — Analysis of actual building-level financial data
• Housing Supply Conditions — Vacancy rates, new construction, and housing availability
• Tenant Income Data — Economic conditions affecting tenants’ ability to pay
• Cost of Financing — Interest rates and mortgage costs for building owners

The RGB’s preliminary vote typically occurs in May, with the final vote in June. The approved increases apply to leases beginning on October 1 of that year through September 30 of the following year.

Historical Context: How This Compares to Prior Years

A 0% increase is rare but not unprecedented. Here is how the last decade of RGB decisions has played out:

RGB Order	Year	1-Year Lease	2-Year Lease
Order #58	2026-2027	0%	0%
Order #57	2025-2026	2.75%	5.25%
Order #56	2024-2025	3.0%	2.75%
Order #55	2023-2024	3.0%	2.75%
Order #54	2022-2023	3.25%	5.0%
Order #53	2021-2022	0%	0%
Order #52	2020-2021	0%	0%
Order #51	2019-2020	1.5%	2.5%
Order #50	2018-2019	1.5%	2.5%
Order #49	2017-2018	1.25%	2.0%
Order #48	2016-2017	0%	2.0%

The 2020 and 2021 COVID-era freezes were driven by pandemic economics. The 2026 freeze reflects a different calculation: declining operating cost growth combined with tenant affordability pressures that have made rent burden a defining political issue in New York City.

What This Means for Landlord Revenue

Let’s be direct about the financial impact. If you own rent-stabilized units, a 0% increase means your gross rental income is flat for the next year while your expenses are not.

The Numbers

Consider a landlord with 20 rent-stabilized units at an average rent of $1,600 per month:

Scenario	Monthly Revenue	Annual Revenue	Difference vs. Freeze
0% increase (Order #58)	$32,000	$384,000	—
2.75% increase (Order #57 rate)	$32,880	$394,560	+$10,560
3.0% increase (Order #56 rate)	$32,960	$395,520	+$11,520

That $10,000-$11,000 gap is real money — especially for smaller landlords who operate on thin margins. And this is a 20-unit building. For a 50-unit building at the same average rent, the gap exceeds $26,000 annually.

The Compounding Problem

The deeper issue is compounding. Rent stabilization increases build on each other. A 0% year doesn’t just cost you this year’s increase — it permanently lowers the base for all future increases. If the RGB approves 3% next year, that 3% applies to the current (frozen) rent, not what the rent would have been with this year’s increase included.

Over a 10-year horizon, a single 0% year can reduce cumulative rental income by 3-5% compared to a scenario with even a modest 2% increase. For buildings with long-term stabilized tenants, this erosion is significant.

What Landlords Can Still Do

A rent freeze does not mean your hands are completely tied. Several mechanisms remain available to increase the rent on stabilized units, even in a 0% year.

1. Major Capital Improvements (MCIs)

If you make a building-wide capital improvement — a new roof, boiler, elevator, plumbing system, or windows — you can apply to HCR (Homes and Community Renewal) for an MCI rent increase. After HSTPA, MCI increases are:

• Capped at 2% per year of the tenant’s rent
• Temporary — they expire after 30 years
• Subject to HCR approval (typical processing time: 12-18 months)

MCIs are not a quick fix, but they remain one of the few ways to recover capital expenditures on stabilized buildings. For more detail on post-HSTPA MCI rules, see our guide on MCI and IAI Caps After HSTPA.

2. Individual Apartment Improvements (IAIs)

When a tenant vacates, you can renovate the apartment and add a permanent rent increase based on the cost of improvements. Under HSTPA:

• Tier 1: Up to $30,000 over 15 years, added at 1/168th (for buildings with 35+ units) or 1/180th (under 35 units) of the total cost per month
• Tier 2: Up to $50,000 over 15 years for tenancies of 25+ years or vacancies between June 2022 and June 2024
• Receipts and documentation are required

3. Hardship Applications

If your building’s operating expenses exceed its rental income, you may file a hardship application with HCR. There are two types:

• Comparative Hardship: Allows a rent increase if operating costs exceed the prior year’s rent roll by a specified threshold
• Alternative Hardship: Allows a rent increase sufficient to provide the owner with a reasonable return on investment

Hardship applications are complex and require detailed financial documentation. Approval rates are low, and processing times can exceed two years. But for buildings genuinely operating at a loss, this mechanism exists.

4. Lease Riders and Additional Charges

Certain additional charges are permitted outside the RGB increase:

• Fuel cost pass-throughs (if heating fuel costs rise above a baseline)
• Air conditioning surcharges (if the landlord provides AC units)
• Appliance or service surcharges (for optional services like parking or storage)

These are modest amounts and subject to specific rules, but they can provide incremental revenue in a freeze year.

Financial Planning for a 0% Year

Smart landlords are already adjusting their financial plans for the freeze year. Here are concrete strategies:

Review and Reduce Operating Costs

If revenue is flat, the only lever is expenses. Conduct a line-by-line review of your operating budget:

• Insurance: Shop your building’s policy. Many NYC landlords haven’t rebid insurance in years and are paying 15-25% more than necessary.
• Energy: Audit utility costs. LED conversions, boiler tune-ups, and weatherization improvements can reduce fuel and electricity costs by 10-20%.
• Maintenance contracts: Review elevator, pest control, and cleaning contracts. Negotiate or rebid.
• Property taxes: File a tax certiorari (property tax challenge) if your building’s assessed value exceeds its actual market value. This is especially relevant for buildings with predominantly stabilized units.

Accelerate MCI Applications

If you have pending capital improvements, file your MCI application now. HCR processing times are long, and the sooner you file, the sooner you can begin collecting the approved increase (retroactive to the filing date).

Plan IAI Renovations Strategically

When units turn over, invest in improvements that maximize the IAI rent increase. Under the $30,000/15-year cap, a $25,000 renovation adds approximately $148.81 per month (at 1/168th) for 15 years. That is meaningful incremental revenue on a unit that might otherwise rent at the same stabilized rate indefinitely.

Build a Cash Reserve

A 0% year is a signal to build financial resilience. If your building is cash-flow positive, increase your operating reserve. The next surprise — a boiler failure, a roof leak, a Local Law 97 compliance cost — will be easier to handle with a cushion.

The Broader Landscape: Good Cause Eviction and HSTPA

The 0% freeze does not exist in isolation. New York landlords are navigating a complex web of regulations that have fundamentally changed the economics of rental housing:

• HSTPA (2019) eliminated vacancy decontrol, vacancy bonuses, and high-income deregulation — permanently expanding the rent-stabilized stock. See our complete guide to what HSTPA changed for NY landlords.
• Good Cause Eviction (2024) extended rent increase caps and eviction protections to many previously unregulated apartments. Use our NY Good Cause Calculator to check if your property is affected.
• Local Law 97 imposes carbon emissions caps on buildings over 25,000 square feet, with fines beginning in 2024.
• Local Law 18 requires short-term rental registration, effectively banning most Airbnb-style rentals in NYC.

Taken together, these laws mean that NYC landlords face tighter revenue constraints and higher compliance costs than at any point in modern history. The 0% freeze is the latest data point in a trend that has been building for years.

What Happens Next Year?

The RGB will begin its 2027-2028 deliberations in early 2027, with a preliminary vote expected in May and a final vote in June. Several factors will influence the outcome:

• PIOC trends: If operating costs accelerate (particularly insurance and fuel), the RGB may approve a positive increase to help landlords cover expenses.
• Political dynamics: The Mayor appoints all nine members. The composition of the board — and the political environment around housing affordability — heavily influences outcomes.
• Interest rates: If borrowing costs remain elevated, landlords facing refinancing pressures may have a stronger case for increases.
• Tenant advocacy: Tenant groups have been increasingly organized and vocal at RGB hearings, pushing for freezes or rollbacks.

There is no guarantee that next year will bring a positive increase. Landlords should plan for the possibility of another freeze or a very modest increase.

How to Track RGB Decisions and Compliance

Staying compliant with rent stabilization rules requires tracking multiple data points for each unit:

• The legal regulated rent for each apartment
• The date of each lease renewal and the applicable RGB order
• Any MCI or IAI increases and their effective dates
• Preferential rent arrangements (if any)
• Registration status with HCR (annual DHCR registration is required)

Missing any of these can result in rent overcharge claims, which carry penalties including treble damages under HSTPA’s expanded lookback period. Manual tracking across dozens or hundreds of units is error-prone. Use a rent stabilization calculator to verify your legal rents are accurate.

“A 0% year forces discipline. The landlords who use this time to tighten operations, file MCIs, and plan IAI renovations will come out ahead. The ones who simply absorb the loss without adjusting will feel it for years because of how compounding works in rent stabilization.”

— Rachid Abadli, Founder & CEO at LeaseBase

Frequently Asked Questions

Does the 0% freeze apply to all apartments in NYC?

No. It applies only to rent-stabilized apartments — approximately 1 million units across New York City. Market-rate apartments, rent-controlled apartments (which have a separate, older system), and apartments covered by the new Good Cause Eviction law are governed by different rules.

Can I still raise the rent on a stabilized apartment if I made improvements?

Yes. MCI and IAI increases are separate from the RGB guideline increase. If you have an approved MCI order or documented IAI improvements, those increases apply on top of the 0% guideline increase. Learn more about MCI and IAI caps after HSTPA.

What if my tenant’s lease renews before October 1, 2026?

Leases renewing before October 1, 2026, are governed by the prior RGB Order #57, which allowed 2.75% for one-year leases and 5.25% for two-year leases. Order #58’s 0% freeze applies only to leases beginning on or after October 1, 2026.

Does the freeze apply to both one-year and two-year leases?

Yes. Unlike some prior years where the RGB set different rates for one-year and two-year renewals, Order #58 sets both at 0%.

Can I refuse to renew a stabilized tenant’s lease?

Generally, no. Under rent stabilization, tenants have a right to renewal. You can only decline renewal for specific legal reasons, such as the tenant using the apartment as a non-primary residence, or the owner intending to use the unit for personal occupancy (with restrictions).

Is this rent freeze permanent?

No. RGB orders are annual. The 0% freeze applies for one year (October 1, 2026 through September 30, 2027). The RGB will set new guidelines for the 2027-2028 period next summer.

How does the 0% freeze interact with Good Cause Eviction?

They are separate systems. Rent-stabilized apartments are explicitly exempt from Good Cause Eviction because they already have their own tenant protections. If your building has both stabilized and non-stabilized units, the non-stabilized units may be subject to Good Cause Eviction while the stabilized units follow RGB guidelines. See our comparison of Rent Stabilization vs Good Cause Eviction.

Plan Ahead With the Right Tools

A 0% year is challenging, but it is manageable with the right preparation. The landlords who struggle most are the ones who don’t see it coming or don’t have a financial plan for flat revenue.

LeaseBase’s NYC Rent Stabilization Calculator helps you track legal rents, RGB order applicability, and MCI/IAI adjustments for every unit in your portfolio. You always know your maximum legal rent and your compliance status — especially important in a year where the answer is zero.

Related Reading

• New York Good Cause Eviction Law: The Complete Guide
• Is Your NY Rental Exempt from Good Cause?
• Rent Stabilization vs Good Cause Eviction: Which Law Applies?
• HSTPA Changed Everything: What NY Landlords Lost in 2019
• MCI and IAI Caps After HSTPA
• NYC Security Deposits, Late Fees, and Application Fees
• Good Cause Eviction Opt-In Tracker

← New York Compliance Hub

What Is Good Cause Eviction?

Good Cause Eviction is a New York State law (Chapter 97 of the Laws of 2024, codified in Real Property Law Article 10) that restricts a landlord’s ability to evict tenants or raise rent to unreasonable levels. It was signed into law on April 20, 2024, as part of the state budget.

The law applies automatically in New York City. Outside NYC, it requires municipalities to affirmatively opt in by passing a local law. As of mid-2026, approximately 19 municipalities have adopted it, with more considering adoption.

Good Cause Eviction is the most significant expansion of tenant protections in New York since the Housing Stability and Tenant Protection Act (HSTPA) of 2019. It extends eviction and rent-increase protections to hundreds of thousands of apartments that were previously unregulated.

Who Does Good Cause Eviction Apply To?

The law applies to residential rental units that are not otherwise exempt. In practical terms, it covers most market-rate apartments in New York City and in any municipality that has opted in. It does not apply to:

• Units already subject to rent stabilization or rent control (they have their own protections)
• Units in buildings with 10 or fewer units statewide (counted across ALL the owner’s properties, not per building)
• Owner-occupied buildings with fewer than 10 units
• New construction for 30 years from the Certificate of Occupancy
• Units renting above 245% of the HUD Fair Market Rent for the county and unit size
• Condominiums and cooperatives
• Certain subsidized and regulated housing

For a detailed breakdown of every exemption, including edge cases and LLC ownership rules, see our guide on Good Cause Exemptions and the 10-Unit Rule.

The Rent Increase Cap: CPI + 5% or 10%

Good Cause Eviction does not directly cap rents. Instead, it creates a mechanism where a tenant can challenge an eviction (including a non-renewal) if the landlord imposed an “unreasonable” rent increase. The law defines a presumptively unreasonable increase as one exceeding:

• CPI + 5%, or
• 10%

Whichever is less.

The CPI used is the Consumer Price Index for the NY-NJ-PA metropolitan statistical area published by the Bureau of Labor Statistics, measured over the 12 months prior to the rent increase.

How the Cap Works in Practice

Scenario	Local CPI	CPI + 5%	10% Cap	Maximum Allowable Increase
Low inflation	2.0%	7.0%	10%	7.0% (CPI+5% is less)
Moderate inflation	3.5%	8.5%	10%	8.5% (CPI+5% is less)
High inflation	6.0%	11.0%	10%	10% (cap applies)

Important distinction: This is not a hard cap like rent stabilization. It is a rebuttable presumption. If you increase rent above the threshold, the increase is presumed unreasonable, but you can argue in court that the increase was justified by specific factors (such as major capital improvements, increased property taxes, or other documented cost increases). The burden of proof shifts to the landlord.

In practice, most landlords should treat this as a functional cap. Litigating the reasonableness of a rent increase is expensive and uncertain. Use our NY Good Cause Calculator to determine your maximum presumptively reasonable increase.

Just Cause Eviction Grounds: The 11 Reasons You Can Evict

Under Good Cause Eviction, a landlord can only commence eviction proceedings (or refuse to renew a lease) for one of these enumerated reasons:

Tenant-Fault Grounds

1. Nonpayment of rent — The tenant has failed to pay rent that is lawfully due
2. Violation of a substantial lease obligation — The tenant has materially violated a term of the lease, and the landlord provided notice and an opportunity to cure
3. Nuisance — The tenant is committing or permitting a nuisance, or is maliciously or by gross negligence substantially damaging the property
4. Illegal use — The tenant is using the unit for an illegal purpose
5. Unreasonable refusal of access — The tenant has unreasonably refused the landlord access for repairs, improvements, or inspections required by law
6. Refusal to renew a substantially similar lease — The tenant has refused to agree to a lease renewal on terms that are substantially the same as the prior lease (except for lawful rent increases)

No-Fault Grounds

7. Owner occupancy — The landlord (or an immediate family member) intends in good faith to occupy the unit as their primary residence. Only available for buildings with fewer than 10 units.
8. Withdrawal from the rental market — The landlord intends in good faith to withdraw the unit from the rental market (does not include conversion to non-residential use in NYC)
9. Demolition or substantial renovation — The landlord has obtained necessary permits and the work requires the unit to be vacant
10. Compliance with government order — A government agency has ordered the unit vacated
11. Unreasonable rent increase refusal — The tenant has refused to agree to a rent increase that is not unreasonable under the law

Notice Requirements: 30, 60, or 90 Days

The notice period required before a landlord can commence eviction proceedings depends on how long the tenant has lived in the unit:

Length of Tenancy	Required Notice Period
Less than 1 year	30 days
1 year to less than 2 years	60 days
2 years or more	90 days

These notice requirements align with the existing Real Property Law Section 226-c requirements that already apply to month-to-month tenancies. However, under Good Cause Eviction, even tenants with active leases receive these protections at lease expiration.

For no-fault evictions (owner occupancy, withdrawal, demolition), the landlord must also demonstrate that the stated reason is genuine and in good faith. Courts can and do scrutinize these claims.

The Exemptions in Detail

The 10-Unit Rule

Buildings where the owner (including related entities) owns 10 or fewer residential rental units statewide are exempt from Good Cause Eviction. This is a statewide count across ALL of the owner’s properties, not a per-building count.

Example: If you own a 4-unit building in Brooklyn and a 7-unit building in Albany, you have 11 units total. Neither building is exempt, even though each building individually has fewer than 10 units.

Owner-Occupied Buildings

If the owner lives in the building and the building has fewer than 10 units, the building is exempt. The owner must actually occupy a unit as their primary residence.

New Construction (30-Year Window)

Buildings that received their first Certificate of Occupancy less than 30 years ago are exempt. This is measured from the date of the original Certificate of Occupancy, not the date of any subsequent renovations.

245% FMR Threshold

Units where the rent exceeds 245% of the HUD Fair Market Rent (FMR) for the applicable county and unit size are exempt. FMR is published annually by HUD. This threshold is evaluated at the time of the lease renewal or proposed increase.

Already Regulated Units

Units already subject to rent stabilization, rent control, Mitchell-Lama, LIHTC, Section 8 project-based, or other regulatory agreements are exempt. These programs have their own tenant protections.

Condos and Co-ops

Individually owned condominium units and cooperative apartments are exempt from Good Cause Eviction.

Municipalities That Have Opted In

Outside New York City (where GCE is automatic), municipalities must pass a local law to adopt Good Cause Eviction. As of mid-2026, the following municipalities have opted in:

Municipality	County	Date Adopted	Notes
Albany (City)	Albany	2024	Among the first to opt in
Kingston	Ulster	2024	Had a local GCE law before the state version
Ithaca	Tompkins	2024	College town with tight rental market
Poughkeepsie (City)	Dutchess	2024	—
Beacon	Dutchess	2024	—
Newburgh	Orange	2024	—
Nyack	Rockland	2024	—
Hudson	Columbia	2024	Had prior local tenant protections
New Paltz (Town)	Ulster	2024	—
New Paltz (Village)	Ulster	2024	—
Rochester	Monroe	2025	Largest opt-in city outside NYC
Woodstock	Ulster	2024	—
Hastings-on-Hudson	Westchester	2025	—
Ossining (Village)	Westchester	2025	—
Peekskill	Westchester	2025	—
Mount Vernon	Westchester	2025	—
Port Chester	Westchester	2025	—
Saugerties	Ulster	2025	—
Catskill	Greene	2025	—

For the latest opt-in status of your municipality, see our Good Cause Eviction Opt-In Tracker, which we update as new municipalities adopt the law.

Good Cause Eviction vs. Rent Stabilization

A common point of confusion: Good Cause Eviction and rent stabilization are separate systems with different rules. If your building is rent-stabilized, GCE does not apply. Here is how they compare:

Feature	Rent Stabilization	Good Cause Eviction
Rent increase mechanism	RGB sets annual rate	CPI + 5% or 10% (whichever is less)
Applies to	~1M NYC apartments (pre-1974 buildings in 6+ unit buildings, tax abatement buildings)	Market-rate apartments not otherwise exempt
Lease renewal right	Yes (mandatory)	Yes (unless just cause exists)
Vacancy decontrol	Eliminated by HSTPA (2019)	N/A — rent resets to market on vacancy
Registration required	Yes (annual DHCR registration)	No
Coverage area	NYC (plus ETPA municipalities)	NYC (automatic) + opt-in municipalities
Sunset date	None (permanent under HSTPA)	June 15, 2034

For a deeper comparison and a decision tree to determine which law applies to your building, see our guide on Rent Stabilization vs Good Cause Eviction.

Practical Compliance Steps for Landlords

If your property is subject to Good Cause Eviction, here is what you need to do:

1. Determine Your Unit Count

Count every residential rental unit you own across New York State, including through LLCs, partnerships, and other entities where you are the beneficial owner. If the total exceeds 10, you are subject to GCE (unless another exemption applies).

2. Check FMR Thresholds

For each unit, compare the current rent to 245% of the HUD Fair Market Rent for your county and unit size. If your rent exceeds this threshold, the unit is exempt. Check this annually, as FMR changes each year. Use our NY Good Cause Calculator for current thresholds.

3. Calculate Your Maximum Presumptively Reasonable Increase

Before issuing any rent increase, calculate CPI + 5% and compare to 10%. The lower number is your safe harbor. Exceeding it does not automatically make the increase illegal, but it shifts the burden of proof to you.

4. Document Cost Increases

If you intend to raise rent above the presumptive cap, document the specific cost increases that justify it: property tax increases, insurance premium hikes, major capital expenses, utility cost increases. You will need this documentation if a tenant challenges the increase.

5. Follow Notice Requirements

Provide the required 30, 60, or 90 days’ written notice before any lease non-renewal or rent increase, based on the tenant’s length of occupancy. Serve the notice using a method that creates proof of delivery.

6. Keep Good Records

Maintain lease copies, rent payment records, notice copies with proof of service, expense documentation, and tenant correspondence. In any GCE dispute, documentation is your primary defense.

“Good Cause Eviction is the quiet revolution in New York housing law. Rent stabilization gets the headlines, but GCE affects a different and potentially larger universe of apartments. If you own market-rate rentals in NYC, you are subject to rent increase limits whether you realize it or not.”

— Rachid Abadli, Founder & CEO at LeaseBase

The Sunset Clause: June 15, 2034

Good Cause Eviction has a built-in sunset date of June 15, 2034. Unless the legislature renews or extends the law before that date, it will expire automatically.

However, given the political trajectory of tenant protection legislation in New York — HSTPA was made permanent, rent stabilization has been strengthened repeatedly, and tenant advocacy organizations are well-funded and organized — most observers expect GCE to be renewed or made permanent before 2034.

Landlords should plan as if Good Cause Eviction is a permanent feature of the regulatory landscape. If it expires, you will have more flexibility. If it does not (the more likely scenario), you will already be compliant.

Frequently Asked Questions

Does Good Cause Eviction apply to my property outside NYC?

Only if your municipality has opted in. Check our opt-in tracker for the current list. If your town or city has not passed a local law adopting GCE, it does not apply to your property (regardless of unit count).

I own 8 units. Am I exempt?

Yes, if you own 10 or fewer units statewide. But count carefully: include ALL residential rental units you own, including through LLCs, partnerships, and related entities. If your spouse or business partner also owns units through the same entity, those count too.

Can I still raise rent above CPI + 5%?

Yes, but the increase is presumed unreasonable and you bear the burden of proving it is justified. You will need to demonstrate specific, documented cost increases that necessitate the higher rent. This is expensive to litigate and uncertain in outcome.

Does GCE apply to commercial tenants?

No. Good Cause Eviction applies only to residential rental units.

What happens when a GCE-covered tenant leaves?

Unlike rent stabilization, Good Cause Eviction does not limit the rent a landlord can charge to a new tenant. The rent increase cap only applies to existing tenants during their tenancy. When a unit is vacated, the landlord can set the rent at any level for the new tenant.

Can a municipality opt out after opting in?

The law does not explicitly address opt-out. In practice, a municipality that adopted GCE by local law could theoretically repeal that local law. However, no municipality has done so as of mid-2026.

Is Good Cause Eviction constitutional?

Legal challenges have been filed, primarily arguing that GCE constitutes an unconstitutional taking of property rights. As of mid-2026, no court has struck down the law. Given the long history of rent regulation in New York withstanding constitutional challenges, most legal analysts expect GCE to survive judicial review.

Stay Compliant Automatically

Good Cause Eviction adds another layer of compliance to an already complex regulatory environment for New York landlords. Between rent stabilization, HSTPA, GCE, local laws, and HPD requirements, keeping track of what applies to each unit is a significant operational burden.

LeaseBase’s NY Good Cause Calculator checks your property against all GCE exemptions, calculates your maximum presumptively reasonable rent increase, and tracks notice requirements based on tenancy length. You get a clear answer for each unit: covered or exempt, and what your limits are.

Related Reading

• NYC Rent Freeze 2026-27: What the 0% RGB Increase Means
• Is Your NY Rental Exempt from Good Cause?
• Rent Stabilization vs Good Cause Eviction: Which Law Applies?
• HSTPA Changed Everything: What NY Landlords Lost in 2019
• MCI and IAI Caps After HSTPA
• NYC Security Deposits, Late Fees, and Application Fees
• Good Cause Eviction Opt-In Tracker

← New York Compliance Hub

The 2026 Cap: 9.683%

For the period beginning July 1, 2026, Washington landlords can increase rent by a maximum of 9.683%. This is the first year the formula-based cap under HB 1217 applies, following the transitional 10% flat cap that was in effect from July 1, 2025, through June 30, 2026.

The 9.683% figure is not arbitrary. It is the result of a specific formula codified in the law, using published federal inflation data. Understanding how this number is derived helps landlords anticipate future caps and plan their rent strategies accordingly.

How the Cap Is Calculated

HB 1217 defines the maximum allowable rent increase as the lesser of:

• 7% + the annual percentage change in CPI-U for the Seattle-Tacoma-Bellevue metropolitan statistical area, or
• 10%

Breaking Down the 2026 Number

Component	Value	Source
Base rate	7.000%	HB 1217 statute
CPI-U (Seattle-Tacoma-Bellevue, June 2025)	2.683%	Bureau of Labor Statistics
Formula result (7% + CPI)	9.683%	Calculated
Hard ceiling	10.000%	HB 1217 statute
2026 Maximum Allowable Increase	9.683%	Lesser of 9.683% and 10%

The CPI-U figure used is the 12-month percentage change published by the Bureau of Labor Statistics for the Seattle-Tacoma-Bellevue metropolitan statistical area. The BLS publishes CPI data monthly, but the Department of Commerce uses the figure as of a specific reference month to calculate the annual cap.

Why the Seattle-Tacoma-Bellevue CPI?

Washington chose the Seattle-Tacoma-Bellevue CPI-U as the reference index because it is the most comprehensive regional CPI measurement available for Washington state. The BLS does not publish a statewide CPI for Washington. The Seattle-Tacoma-Bellevue MSA covers the majority of Washington’s population and serves as a reasonable proxy for statewide cost-of-living changes.

This means all Washington landlords — whether in Seattle, Spokane, Yakima, or Bellingham — use the same CPI figure and the same cap rate. There are no regional variations in the state-level cap, unlike California where different metro areas have different CPI figures and therefore different cap rates.

The Department of Commerce Publication Process

The Washington Department of Commerce is responsible for publishing the official maximum allowable rent increase each year. The process works as follows:

1. BLS publishes CPI data. The Bureau of Labor Statistics releases CPI-U data monthly, including the Seattle-Tacoma-Bellevue figure.
2. Department of Commerce calculates the cap. Using the statutory formula (7% + CPI, max 10%), the department determines the maximum allowable increase for the upcoming period.
3. Publication in July. The official maximum is published each July, effective for the 12-month period beginning July 1.
4. Standardized notice form updated. The department updates the required standardized notice form to reflect the current cap rate.

Landlords should check the Department of Commerce website each July for the updated cap rate and notice form. The published rate is the official number — do not calculate your own cap based on BLS data and assume it matches what Commerce publishes.

Historical and Projected Cap Rates

Period	CPI Component	Formula Result	Effective Cap	Notes
July 2025 – June 2026	N/A (transitional)	N/A	10.0%	Flat cap built into statute
July 2026 – June 2027	2.683%	9.683%	9.683%	First formula-based year
July 2027 – June 2028	~2.0–3.0% (projected)	~9.0–10.0%	~9.0–10.0%	Depends on inflation trend
July 2028 – June 2029	~2.0–2.5% (projected)	~9.0–9.5%	~9.0–9.5%	Assumes continued CPI moderation

Important: The projected figures for 2027 and beyond are estimates based on current inflation trends and Federal Reserve projections. Actual figures will depend on economic conditions and will be published by the Department of Commerce each July.

How CPI Trends Affect Future Caps

Understanding CPI trends helps landlords plan multi-year rent strategies. Here are the key dynamics:

If Inflation Falls (CPI Below 2%)

If Seattle-Tacoma-Bellevue CPI-U drops below 2%, the cap would fall below 9%. At CPI of 1%, the cap would be 8%. At CPI of 0% (no inflation), the cap would be 7% — the statutory base alone. Even in a zero-inflation environment, Washington landlords can increase rent by up to 7%.

This 7% floor is a significant feature of HB 1217. Unlike some rent control regimes that tie caps entirely to CPI (resulting in very low allowable increases when inflation is low), Washington’s formula guarantees landlords can always adjust rents by at least 7% per year.

If Inflation Rises (CPI Above 3%)

If CPI rises above 3%, the formula result exceeds 10%, and the hard ceiling kicks in. At CPI of 3.1%, the formula gives 10.1%, but the cap stays at 10%. This means the 10% ceiling only matters during periods of elevated inflation (CPI above 3%).

During the high-inflation period of 2022-2023, Seattle-Tacoma-Bellevue CPI-U was well above 3%, meaning the cap would have been 10% in those years. As inflation has moderated, the formula produces a result below the ceiling.

CPI Scenarios and Cap Impact

CPI-U (Seattle-Tacoma-Bellevue)	Formula (7% + CPI)	Effective Cap
0.0%	7.0%	7.0%
1.0%	8.0%	8.0%
2.0%	9.0%	9.0%
2.683% (2026 actual)	9.683%	9.683%
3.0%	10.0%	10.0%
4.0%	11.0%	10.0% (ceiling)
5.0%	12.0%	10.0% (ceiling)

Comparison with Oregon and California

Washington’s cap formula is most similar to Oregon’s, but there are meaningful differences. Here is how the three West Coast states compare for 2026:

Feature	Washington (HB 1217)	Oregon (SB 608)	California (AB 1482)
Formula	7% + CPI	7% + CPI	5% + CPI
Hard ceiling	10%	None	10%
CPI index	Seattle-Tacoma-Bellevue	West Region CPI-U	Regional (varies)
2026 cap	9.683%	9.5%	6.3–8.8% (varies)
Notice period	90 days (state)	90 days	30 days (under 10%)
Vacancy decontrol	Yes	Yes	Yes
New construction exemption	12 years	15 years	15 years
Sunset	2040	None (permanent)	2035

Key Differences

Oregon has no hard ceiling. Oregon’s formula is identical to Washington’s (7% + CPI) but without a 10% maximum. In high-inflation years, Oregon landlords can exceed 10% if CPI justifies it. Washington landlords are always capped at 10%.

California uses a lower base. California’s 5% base rate (vs. 7% in WA and OR) results in consistently lower caps. A California landlord and a Washington landlord in the same CPI environment will see a 2% difference in their maximum allowable increase. Over multiple years, this compounds significantly.

California uses regional CPI. Because California uses different CPI figures for different metro areas, the cap varies across the state. Los Angeles has a different cap than San Francisco, which has a different cap than San Diego. Washington applies one statewide rate.

What Landlords Should Plan for 2027

As of mid-2026, the Federal Reserve projects continued moderation in inflation. If this projection holds, the 2027 Washington rent cap is likely to be in the 9.0-9.5% range. Here is how to plan:

1. Check the Department of Commerce in July 2027

The official 2027 cap will be published in July 2027. Do not assume the 2026 rate carries forward. CPI changes every year, and the cap changes with it.

2. Model Multiple Scenarios

Build your rent increase strategy around a range of possible caps. If the 2027 cap is 9%, plan for that. If it is 8%, plan for that too. Don’t set your entire strategy around a single assumed number.

3. Consider Multi-Year Compounding

Even at modest annual increases, compounding adds up. Here is what a $2,000/month unit looks like over five years under different cap scenarios:

Year	9.683% Cap (2026 rate)	9% Cap (lower CPI)	8% Cap (much lower CPI)
2026	$2,194	$2,180	$2,160
2027	$2,406	$2,376	$2,333
2028	$2,639	$2,590	$2,519
2029	$2,894	$2,823	$2,721
2030	$3,174	$3,077	$2,938

Over five years, the difference between a 9.683% cap and an 8% cap on a $2,000 unit is $236/month ($3,174 vs $2,938). This illustrates why CPI trends matter for long-term rental income projections.

4. Factor in Local EDRA Thresholds

In Seattle, the 2026 cap (9.683%) falls just under the 10% EDRA threshold. If the 2027 cap rises above 10%, maximizing the allowable increase would trigger EDRA. Plan your increase to stay under the EDRA threshold unless the additional revenue justifies the relocation payment. See our EDRA guide for break-even calculations.

When and How to Issue the Increase

The timing and format of your rent increase notice must comply with both state and local requirements:

Step 1: Verify the Current Cap

Check the Department of Commerce website for the official maximum allowable increase. For increases effective between July 1, 2026, and June 30, 2027, the cap is 9.683%.

Step 2: Calculate Your Increase

Multiply your current rent by the cap percentage. For a $2,000/month unit:

$2,000 x 9.683% = $193.66 maximum increase
Maximum new rent: $2,193.66/month

Use the Washington Rent Cap Calculator to verify your calculation and check EDRA exposure based on your city.

Step 3: Use the Standardized Notice Form

HB 1217 requires the use of a standardized notice form prescribed by the Department of Commerce. Download the current form from the department’s website. Do not use your own template, even if it contains all required information.

The notice must include:

• Current rent amount
• New rent amount
• Effective date of increase
• Percentage increase
• Maximum allowable increase for the current period
• Tenant resource information

Step 4: Provide Adequate Notice

Location	Minimum Notice Period
Washington State (default)	90 days
Olympia (under 7%)	120 days
Tacoma (under 5%)	120 days
Seattle (all amounts)	180 days
Olympia (7%+)	180 days
Tacoma (5%+)	210 days

Step 5: Deliver and Document

Deliver the notice via a method that provides proof of delivery: certified mail, personal delivery with a witness, or posting and mailing as permitted by your jurisdiction. Keep a copy of the notice and proof of delivery in your records.

“The number that matters isn’t last year’s cap or what you think the cap should be. It’s the number published by the Department of Commerce this July. Check it, use it, and move on. The landlords who get into trouble are the ones who guess instead of looking it up.”

— Rachid Abadli, Founder & CEO at LeaseBase

Frequently Asked Questions

Why is the 2026 cap 9.683% and not 10%?

The 2025 transitional year used a flat 10% cap written directly into the statute. Starting in 2026, the formula (7% + CPI) applies. Because the 2025 Seattle-Tacoma-Bellevue CPI-U was 2.683% (below 3%), the formula result (9.683%) is below the 10% ceiling. The cap will only hit 10% when CPI is 3% or higher.

Does the cap apply to all rent increases, including lease renewals?

Yes. The cap applies to any rent increase for an existing tenant, whether the tenancy is month-to-month or a fixed-term lease being renewed at a higher rate. The only exception is when a unit is vacant between tenants (vacancy decontrol).

Can I bank unused increases from prior years?

No. HB 1217 does not allow banking. If you don’t increase rent in 2026, you cannot increase by 19.366% (two years’ worth) in 2027. The cap applies to each 12-month period independently.

What if the 2027 cap is lower than the 2026 cap?

You must use the cap in effect at the time the increase takes effect. If the 2027 cap is 8.5%, that is your maximum for increases effective between July 1, 2027, and June 30, 2028, regardless of what the 2026 cap was.

How does the cap interact with EDRA in Seattle?

For 2026, the cap (9.683%) is under Seattle’s 10% EDRA trigger. A landlord who increases rent by the maximum allowable amount will not trigger EDRA. However, if CPI rises in future years and the cap exceeds 10%, maximizing the allowable increase would trigger EDRA in Seattle.

Where can I find the official published cap rate?

The Washington Department of Commerce publishes the official maximum allowable rent increase each July. Check their website for the current figure and the standardized notice form.

Is the 9.683% cap the same everywhere in Washington?

Yes, at the state level. HB 1217 uses a single CPI figure (Seattle-Tacoma-Bellevue) for the entire state. Unlike California, which has different caps for different regions, Washington applies one cap statewide. However, local ordinances in Seattle, Tacoma, and Olympia add additional requirements (notice periods, EDRA) that vary by city.

Calculate Your Maximum Increase

Don’t guess — calculate. The Washington Rent Cap Calculator uses the current cap rate to show your maximum allowable increase, EDRA exposure, and required notice timeline based on your property’s city.

LeaseBase tracks the annual cap rate automatically and updates your compliance dashboard when the Department of Commerce publishes new figures each July. No spreadsheets, no guesswork.

Related Reading

• Washington Rent Cap Calculator
• Washington’s New Rent Cap Law (HB 1217): Complete Guide
• Seattle’s 180-Day Notice Rule
• Seattle EDRA: When a Rent Increase Triggers $6,000+ in Relocation Payments
• Is Your Washington Rental Exempt?
• Tacoma vs Seattle vs Olympia: 3 Different Rent Rules

← Washington Compliance Hub

Three Cities, Three Rulebooks

Washington’s HB 1217 established the first statewide rent cap, but it did not preempt local ordinances that go further. Seattle, Tacoma, and Olympia all had tenant protection laws before HB 1217 passed, and those local rules remain in effect. The result is a patchwork where the same rent increase can be legal in one city and trigger thousands of dollars in relocation payments in another — even though all three cities are in the same state, under the same statewide cap.

If you own rental properties in multiple Washington cities, understanding these differences is not optional. This guide provides a comprehensive comparison of the three major local regimes, with practical guidance for landlords who operate across city lines.

The Master Comparison Table

Feature	Seattle	Tacoma	Olympia	WA State (HB 1217)
Rent cap	9.683% (2026, same as state)	9.683% (2026, same as state)	9.683% (2026, same as state)	7% + CPI (max 10%)
Notice period	180 days (all increases)	120 days (<5%), 210 days (5%+)	120 days (<7%), 180 days (7%+)	90 days
EDRA trigger	10%+ within 12 months	5%+ increase	7%+ increase	None at state level
EDRA amount	3x monthly housing cost	3x monthly rent	2.5x monthly rent	N/A
EDRA example ($2,000 rent)	$6,000+	$6,000	$5,000	N/A
Winter eviction ban	Yes (Dec 1 – Mar 1, 4+ units)	No	No	No
Just cause eviction	City ordinance (since 1980) + state	State law (RCW 59.18.650)	State law (RCW 59.18.650)	RCW 59.18.650 (17 causes)
Governing ordinance	SMC 7.24	Ordinance 29086	OMC 5.84	HB 1217 / RCW 59.18

Seattle: The 180-Day Standard

Seattle’s tenant protection framework is the most established in Washington, with roots going back to the 1980 Just Cause Eviction Ordinance. The city’s rent increase rules are codified in Seattle Municipal Code Chapter 7.24.

Notice Period: 180 Days for Everything

Seattle uses a flat 180-day notice period for all rent increases, regardless of the amount. Whether you’re raising rent by 2% or 9%, the tenant gets six months’ notice. This is the longest flat-rate notice period in the United States.

The simplicity of a single notice period is actually an advantage for landlords from a compliance standpoint. There is no risk of miscategorizing your increase and using the wrong notice window — it is always 180 days.

EDRA: 10% Trigger, 3x Payment

Seattle’s Economic Displacement Relocation Assistance triggers at 10% or more within 12 months. The payment is 3x the tenant’s current monthly housing cost (rent plus included utilities). For a detailed breakdown, see our Seattle EDRA guide.

Key strategic insight: for 2026, the statewide rent cap is 9.683%. This falls just under Seattle’s 10% EDRA threshold. A Seattle landlord who maximizes their allowable increase under HB 1217 will not trigger EDRA. This happy coincidence may not hold every year — if CPI rises, the cap could exceed 10%, and any increase at the maximum would trigger EDRA.

Winter Eviction Ban

Seattle is the only major Washington city with a winter eviction ban. From December 1 through March 1, most no-fault evictions and lease non-renewals are prohibited in buildings with 4 or more units for low-to-moderate income tenants. This does not apply to for-cause evictions (nonpayment, criminal activity, etc.).

Just Cause: City Ordinance Predates State Law

Seattle’s Just Cause Eviction Ordinance (SMC 22.206.160(C)) has been in effect since 1980. It is more restrictive than the state’s just cause framework in several ways, including applying from the start of tenancy (no waiting period) and including additional enumerated causes specific to Seattle.

Tacoma: The Strictest EDRA in the State

Tacoma’s tenant protection ordinance (Ordinance 29086) is notable for having the lowest EDRA trigger threshold in Washington and one of the longest potential notice periods in the country.

Notice Period: Tiered 120/210 Days

Tacoma uses a tiered notice system based on the size of the increase:

• Increases under 5%: 120 days’ notice required
• Increases of 5% or more: 210 days’ notice required

At 210 days, Tacoma’s notice period for larger increases exceeds Seattle’s 180 days, making it the longest notice period in Washington — and arguably the longest in the country for rent increases above a certain threshold.

For landlords, the 5% dividing line creates a meaningful decision point. A 4.9% increase requires 120 days’ notice. A 5.0% increase requires 210 days — an additional 90 days of lead time for a marginal $1-$2/month difference in rent on a typical unit.

EDRA: 5% Trigger, 3x Payment

Tacoma’s relocation assistance triggers at just 5% — half of Seattle’s 10% threshold. The payment is 3x the current monthly rent. For a $2,000/month unit, a rent increase of just $100/month triggers a $6,000 relocation payment.

This 5% threshold changes the math fundamentally for Tacoma landlords. In Seattle, you can increase rent by up to 9.683% without EDRA exposure. In Tacoma, anything above 5% triggers a payment that can easily exceed a full year’s worth of the additional rent revenue.

Tacoma EDRA Break-Even Analysis

Current Rent	Increase %	Monthly Gain	EDRA Payment	Months to Break Even
$1,500	5%	$75	$4,500	60 months (5 years)
$2,000	5%	$100	$6,000	60 months (5 years)
$2,000	7%	$140	$6,000	43 months (3.5 years)
$2,000	9.683%	$194	$6,000	31 months (2.6 years)
$2,500	5%	$125	$7,500	60 months (5 years)

The break-even period at the 5% trigger is always 60 months (5 years), regardless of rent amount. This is because both the monthly gain and the EDRA payment scale proportionally with rent. At higher increase percentages, the break-even period shortens because the EDRA payment stays fixed at 3x rent while the monthly gain increases.

Just Cause: State Law Applies

Unlike Seattle, Tacoma does not have its own just cause eviction ordinance. Tacoma landlords follow the state framework under RCW 59.18.650, which provides 17 enumerated causes for eviction.

Olympia: The Middle Ground

Olympia’s tenant protection ordinance (OMC 5.84) splits the difference between Seattle and Tacoma on most provisions.

Notice Period: Tiered 120/180 Days

Like Tacoma, Olympia uses a tiered system:

• Increases under 7%: 120 days’ notice required
• Increases of 7% or more: 180 days’ notice required

The 7% threshold aligns with Olympia’s EDRA trigger, creating a clean relationship: if an increase is large enough to trigger relocation assistance, it also requires the longer notice period.

EDRA: 7% Trigger, 2.5x Payment

Olympia triggers relocation assistance at 7% with a 2.5x monthly rent multiplier. This is lower than Seattle’s and Tacoma’s 3x multiplier, making the payments somewhat smaller:

Current Rent	Increase %	EDRA Payment
$1,500	7%	$3,750
$2,000	7%	$5,000
$2,500	7%	$6,250

Olympia’s 7% threshold gives landlords more room than Tacoma’s 5% but less than Seattle’s 10%. For a landlord trying to keep increases in the EDRA-free zone, Olympia allows increases nearly twice as large as Tacoma before triggering a payment.

Just Cause: State Law Applies

Like Tacoma, Olympia follows the state just cause eviction framework under RCW 59.18.650. There is no separate city ordinance.

Burien: The City That Stepped Back

Burien is worth mentioning because it had adopted its own tenant protection ordinance, but rescinded it in May 2025, shortly before HB 1217 took effect. Burien landlords now operate under state law only (90-day notice, no local EDRA, no local just cause overlay).

Burien’s decision to rescind its local ordinance reflects the view that HB 1217’s statewide framework makes local ordinances unnecessary. Other cities may follow suit, but Seattle, Tacoma, and Olympia have shown no indication of repealing their stronger local protections.

Practical Guide for Multi-City Landlords

If you own properties in more than one Washington city, you need a system for tracking which rules apply where. Here are practical strategies:

Strategy 1: Default to the Strictest Rule

The simplest compliance approach is to apply the strictest rule across all your properties:

• Use 210 days’ notice for all rent increases (covers Tacoma’s maximum)
• Keep increases under 5% to avoid EDRA everywhere (covers Tacoma’s threshold)
• Assume all tenants are income-eligible for EDRA until you know otherwise

This is the safest approach but the most conservative. You leave money on the table for properties in cities with less restrictive rules.

Strategy 2: Track by Property

The more sophisticated approach is to track each property’s city and apply the correct local rules. This requires:

• A per-property record of which city (and therefore which rules) each property falls under
• Different notice timelines for different properties
• Different EDRA calculations for different cities
• Calendar systems that account for varying notice deadlines

LeaseBase tracks city-specific compliance requirements automatically for each property in your portfolio, applying the correct notice periods, EDRA thresholds, and cap calculations based on the property’s location.

Strategy 3: The EDRA-Aware Pricing Model

For each property, calculate the maximum EDRA-free increase:

City	EDRA-Free Maximum	Dollar Amount ($2,000 rent)
Seattle	9.99%	$199.80/month
Olympia	6.99%	$139.80/month
Tacoma	4.99%	$99.80/month
All other WA cities	9.683% (cap only, no EDRA)	$193.66/month

Use the Washington Rent Cap Calculator to model these scenarios for your specific rents.

Scenario: Same Property, Different Cities

To illustrate how dramatically the rules differ, consider a landlord who wants to increase rent from $2,000 to $2,180 (9% increase) on three identical properties in three different cities:

Seattle Property

• Notice required: 180 days
• EDRA triggered: No (9% < 10% threshold)
• Cost: $0 in relocation assistance
• Net annual gain: $180/month x 12 = $2,160

Tacoma Property

• Notice required: 210 days (9% > 5% threshold)
• EDRA triggered: Yes (9% > 5% threshold)
• Cost: $6,000 in relocation assistance (if tenant is income-eligible)
• Net Year 1 impact: $2,160 – $6,000 = -$3,840 loss

Olympia Property

• Notice required: 180 days (9% > 7% threshold)
• EDRA triggered: Yes (9% > 7% threshold)
• Cost: $5,000 in relocation assistance (if tenant is income-eligible)
• Net Year 1 impact: $2,160 – $5,000 = -$2,840 loss

The same 9% increase generates a $2,160 gain in Seattle, a $3,840 loss in Tacoma, and a $2,840 loss in Olympia in Year 1. This is why multi-city landlords must model EDRA impact before issuing any increase above the local threshold.

“Washington is now a state where a 9% rent increase is free in Seattle, costs $5,000 in Olympia, and costs $6,000 in Tacoma. If you own properties in more than one city, you are operating under three different financial models. The landlords who get burned are the ones who assume the rules are the same everywhere.”

— Rachid Abadli, Founder & CEO at LeaseBase

What About Other Washington Cities?

As of mid-2026, Seattle, Tacoma, and Olympia are the only Washington cities with local rent increase regulations that exceed HB 1217. All other cities — including Spokane, Vancouver, Bellevue, Everett, Kent, and Renton — operate under state law only:

• 90-day notice period
• 9.683% rent cap (2026)
• No local EDRA or relocation assistance
• State just cause eviction under RCW 59.18.650

However, other cities may adopt their own ordinances at any time. Several Puget Sound cities have considered tenant protection measures in recent years. Landlords operating in these areas should monitor city council agendas for proposed ordinances.

Timeline Summary: When to Issue Notices

For a rent increase effective January 1, 2027, here are the latest possible notice delivery dates by city:

City	Increase Under Tier Threshold	Increase At/Above Tier Threshold
Seattle	July 5, 2026 (180 days)	July 5, 2026 (180 days, same for all)
Tacoma	September 3, 2026 (120 days, <5%)	June 6, 2026 (210 days, 5%+)
Olympia	September 3, 2026 (120 days, <7%)	July 5, 2026 (180 days, 7%+)
WA State (other cities)	October 3, 2026 (90 days)	October 3, 2026 (90 days, same for all)

Tacoma landlords planning a 5%+ increase effective January 1, 2027, must deliver notice by early June 2026 — more than six months ahead. This is the longest lead time of any jurisdiction in the country.

Frequently Asked Questions

Which city’s rules apply if my property is on the border?

The rules of the city where the property is physically located apply. If your property is in unincorporated King County (not within any city limits), only state law applies. Check your property’s address against city boundary maps to confirm jurisdiction.

Can a city adopt rules less strict than HB 1217?

No. HB 1217 establishes a statewide floor. Cities can adopt rules that go further (longer notice periods, lower EDRA thresholds), but they cannot adopt rules that are less protective than the state minimum. Burien rescinding its ordinance means state law applies there, not that Burien has weaker rules than the state.

Do I need to track different rules for each unit in the same building?

No. All units in the same building are in the same city and subject to the same local rules. However, EDRA eligibility is determined per-tenant based on income, so the financial impact of a rent increase may differ by unit.

What if I live in one city but own property in another?

Your residence is irrelevant. The rules that apply are based on where the property is located. A Spokane-based landlord who owns a building in Seattle must follow Seattle’s rules for that building.

Are more cities likely to adopt local ordinances?

Possible but uncertain. Cities like Bellevue, Renton, and Everett have discussed tenant protections in recent years. HB 1217 may reduce the urgency for local action (since statewide protections now exist), but cities with strong tenant advocacy communities may still adopt additional measures.

Stay Compliant Across All Cities

Managing compliance across multiple Washington jurisdictions requires tracking different notice periods, EDRA thresholds, payment amounts, and timeline requirements for each property. LeaseBase automatically applies the correct rules based on each property’s location, so you never accidentally use Seattle’s notice period for a Tacoma property or miss Olympia’s relocation threshold.

Related Reading

• Washington Rent Cap Calculator
• Washington’s New Rent Cap Law (HB 1217): Complete Guide
• Seattle’s 180-Day Notice Rule
• Seattle EDRA: When a Rent Increase Triggers $6,000+ in Relocation Payments
• Is Your Washington Rental Exempt?
• Washington Rent Cap 2026: How 9.68% Is Calculated

← Washington Compliance Hub

Understanding HB 1217 Exemptions

Washington’s rent cap law, HB 1217, caps annual rent increases at 7% + CPI (maximum 10%) for most residential rental properties. But not every property is subject to the cap. The law carves out three specific exemption categories designed to protect new housing development, small-scale landlords, and nonprofit housing providers.

If your property falls into one of these categories, you are exempt from the rent cap calculation only. Other provisions of HB 1217 and Washington landlord-tenant law — including notice requirements, just cause eviction protections, and local ordinances — still apply. Understanding exactly what is and isn’t covered by your exemption is critical to staying compliant.

Exemption Category 1: New Construction (12-Year Rule)

The most significant exemption applies to newly constructed residential properties. A property is exempt from the rent cap for 12 years from the date of its first certificate of occupancy (CoO).

What “Certificate of Occupancy” Means

A certificate of occupancy is the document issued by the local building department certifying that a building meets all applicable building codes and is safe for residential use. It is issued after construction is complete and final inspections are passed. This is the document that starts your 12-year exemption clock.

Key clarifications:

• The date that matters is the CoO date, not the date construction began, the date you purchased the property, or the date the first tenant moved in.
• “First” certificate of occupancy means the original CoO for the building, not a subsequent CoO issued after renovations or additions.
• If a building has been substantially demolished and rebuilt, a new CoO may be issued, potentially restarting the clock. Consult with your local building department and an attorney to determine whether your situation qualifies.
• The exemption applies to the entire building, not individual units. You cannot have some units exempt and others not based on when they were completed.

Calculating Your Exemption Window

The calculation is straightforward: add 12 years to your first certificate of occupancy date.

Certificate of Occupancy Date	Exemption Expires	Status in 2026
January 2010	January 2022	Expired — subject to rent cap
June 2013	June 2025	Expired — subject to rent cap
March 2015	March 2027	Exempt until March 2027
September 2018	September 2030	Exempt until September 2030
January 2022	January 2034	Exempt until January 2034
July 2025	July 2037	Exempt until July 2037

Why the 12-Year Exemption Exists

The new construction exemption serves an economic purpose: it avoids discouraging housing development. Developers and investors who commit capital to building new housing rely on the ability to set market-rate rents and adjust them without restriction for a reasonable period. If rent caps applied from day one, the financial models for new construction would change, potentially reducing the supply of new housing — the opposite of what rent stabilization is meant to achieve.

This is the same rationale behind California’s 15-year exemption under AB 1482 and Oregon’s 15-year exemption. Washington chose a shorter 12-year window, reflecting a balance between development incentives and tenant protection.

Comparison: Washington 12-Year vs California 15-Year

Feature	Washington (HB 1217)	California (AB 1482)
Exemption period	12 years	15 years
Clock starts	First certificate of occupancy	First certificate of occupancy
Window type	Fixed from CoO date	Rolling (recalculated each year)
Applies to	Entire building	Entire building
Must notify tenant of exemption?	Not specified in HB 1217	Yes (written notice required for SFH exemption)
Substantial renovation restarts clock?	Only if new CoO issued	No (original CoO date controls)

California’s 15-year window gives developers three additional years of exemption, but the rolling calculation means that a property built in 2010 loses its exemption in 2025 regardless of when the owner purchased it. Washington’s fixed 12-year window from the CoO date works similarly — the exemption is tied to the building, not the owner.

Exemption Category 2: Owner-Occupied Small Buildings (4 Units or Fewer)

If you live in the building and it has four or fewer total residential units, the rent cap does not apply to the other units. This covers owner-occupied duplexes, triplexes, and fourplexes.

Requirements

• Owner occupancy: You must actually reside in one of the units as your primary residence. Owning the building without living there does not qualify.
• Unit count: The building must have no more than four total residential units, including the one you occupy.
• Continuous occupancy: If you move out, the exemption ends. You cannot claim the exemption retroactively for periods when you were not living in the building.

Practical Considerations

This exemption is particularly relevant for house-hackers and small-scale investors who live in one unit of a multi-family property. Common scenarios:

• Owner-occupied duplex: You live in one unit and rent the other. The rental unit is exempt from the rent cap.
• Owner-occupied triplex: You live in one unit and rent two. Both rental units are exempt.
• Owner-occupied fourplex: You live in one unit and rent three. All three rental units are exempt.
• Five or more units: Even if you live in one unit, the building does not qualify. The rent cap applies to all rental units.

If you move out of your unit (for example, to purchase a single-family home), the exemption ends and the rent cap applies to all units going forward. Plan your personal housing decisions with this transition in mind.

What This Exemption Does NOT Cover

Even with the owner-occupied exemption:

• You must still provide 90 days’ notice (or the local requirement) before any rent increase
• Just cause eviction protections under RCW 59.18.650 still apply
• Local ordinances in Seattle, Tacoma, Olympia, and other cities still apply — including longer notice periods and EDRA
• The first 12 months no-increase rule for new tenancies still applies
• The one increase per 12 months limitation still applies

Exemption Category 3: Nonprofit-Owned Housing

Properties owned and operated by nonprofit organizations are exempt from the HB 1217 rent cap. This primarily affects:

• Affordable housing providers operating under their own regulatory agreements
• Community development corporations (CDCs)
• Religious organizations that provide housing
• Other 501(c)(3) organizations that own and operate residential rental property

This exemption recognizes that nonprofit housing operators typically operate under regulatory frameworks (LIHTC, Section 8, HUD agreements) that already restrict rent levels. Applying HB 1217’s rent cap on top of existing regulatory restrictions would be redundant and potentially create conflicts.

If you are a nonprofit considering this exemption, verify that your organization’s structure and operations qualify. The exemption applies to the organization, not to individual properties — all properties owned and operated by the qualifying nonprofit are exempt.

What Exemptions Do NOT Cover

This is the most critical section of this guide. Even if your property is fully exempt from the rent cap, you are still subject to multiple HB 1217 provisions and broader Washington landlord-tenant law:

1. Notice Requirements Still Apply

The 90-day standardized notice requirement applies to all residential rental properties, regardless of exemption status. In Seattle (180 days), Tacoma (120-210 days), and Olympia (120-180 days), the local notice period applies. You must use the standardized notice form prescribed by the Department of Commerce.

2. Just Cause Eviction Still Applies

RCW 59.18.650’s just cause eviction framework applies to all residential tenancies in Washington. Exempt properties are not exempt from just cause protections. You still need one of the 17 enumerated causes to terminate a tenancy.

3. First 12 Months Rule Still Applies

Even for exempt properties, you cannot increase rent during the first 12 months of a new tenancy. The initial lease rate is locked for the first year.

4. One Increase Per 12 Months Still Applies

Exempt properties are still limited to one rent increase per 12-month period. You cannot increase rent more frequently even if you are exempt from the cap amount.

5. Local Ordinances Still Apply

Seattle’s EDRA, Tacoma’s relocation assistance, Olympia’s requirements — these are city-level ordinances that operate independently of HB 1217. Your state-level exemption does not override city-level requirements.

How to Document Your Exemption

If you believe your property is exempt, document it proactively. Do not wait for a tenant dispute to establish your exemption status.

For New Construction Exemption

1. Obtain a copy of your certificate of occupancy from the local building department. Most jurisdictions maintain these records indefinitely.
2. Note the date on the CoO. This is the date that starts your 12-year clock.
3. Calculate your exemption expiration date. Add 12 years to the CoO date.
4. Keep the CoO with your property records. You may need to produce it if a tenant challenges your exemption.
5. Set a calendar reminder for 6-12 months before your exemption expires, so you can plan the transition to cap compliance.

For Owner-Occupied Exemption

1. Document your primary residence status. Utility bills, voter registration, and driver’s license showing the property address all help establish occupancy.
2. Maintain records of continuous occupancy. If you travel or are temporarily away, ensure you maintain the unit as your primary residence.
3. Plan for the transition if you move out. The exemption ends when you vacate. Any rent increase notices issued after you leave must comply with the cap.

For Nonprofit Exemption

1. Maintain current nonprofit status documentation. IRS determination letter, state registration, and articles of incorporation should be on file.
2. Document the organization’s ownership and operation of the property. The exemption applies to properties “owned and operated by” the nonprofit.

What Happens When Your Exemption Expires

When the new construction 12-year window closes, the transition to rent cap compliance is immediate. There is no grace period. Here is what to expect:

The Day Your Exemption Expires

• Any rent increase notice served on or after the expiration date must comply with the cap (currently 9.683% for 2026)
• Rent increases already in effect before the expiration date are not retroactively limited — the cap applies to future increases only
• The rent level at the time of expiration becomes your baseline for future cap calculations

Strategic Planning for Expiration

Smart landlords plan their last exempt increase carefully:

Your exemption expires July 2027. You currently charge $2,500/month, which is below market at $3,000/month.

Option 1: Raise rent to $3,000 (20% increase) before the exemption expires. You must provide 90 days’ notice (or 180 days in Seattle). This is legal while exempt but may trigger EDRA if your property is in Seattle, Tacoma, or Olympia.

Option 2: Raise rent to $2,750 (10% increase) before the exemption, then increase by the cap amount each year after. Slower to reach market rate, but avoids EDRA in Seattle.

Option 3: Wait for tenant turnover. Vacancy decontrol allows you to set any rent for a new tenant, even after the exemption expires.

The key insight: your last exempt increase is your best opportunity to align with market rates. Once the cap applies, your ability to close a gap between current rent and market rate is limited to the annual cap amount. A $500/month gap with a ~10% annual cap takes years to close.

Common Misconceptions About Exemptions

“My property is exempt, so I can do whatever I want”

Wrong. Exemption from the rent cap does not mean exemption from all rules. Notice requirements, just cause eviction, local ordinances, and the 12-month new tenancy protection all still apply. Treat the exemption as a single-dimension carve-out, not a blanket pass.

“I renovated my building, so the 12-year clock restarted”

Not necessarily. The 12-year clock is tied to the first certificate of occupancy. Renovations that don’t require a new CoO don’t restart the clock. Only substantial rebuilds that result in a new CoO can restart it. Consult your local building department to determine whether your renovation qualifies.

“I just bought the property, so my 12 years should start now”

No. The exemption runs from the building’s first CoO, not your purchase date. If the building was constructed in 2012, the exemption expired in 2024 regardless of when you bought it.

“My fourplex is exempt because it’s small”

Only if you live in one of the units. The owner-occupied exemption requires actual owner occupancy. A fourplex you own but don’t live in is not exempt under this category. (It may still qualify under the new construction exemption if it’s within the 12-year window.)

“I don’t need to provide notice because I’m exempt”

Wrong. The 90-day (or longer local) notice requirement applies regardless of exemption status. You must use the standardized notice form for all rent increases.

“The most dangerous assumption in Washington real estate right now is that your property is exempt and therefore unregulated. Exempt properties still have to follow notice rules, just cause protections, local ordinances, and timing restrictions. The exemption only removes the cap on the dollar amount of the increase. Everything else still applies.”

— Rachid Abadli, Founder & CEO at LeaseBase

Frequently Asked Questions

How do I find my certificate of occupancy date?

Contact your local building department (city or county). Most jurisdictions maintain CoO records and can provide copies. Some municipalities have online permit databases where you can look up your property. The CoO date is also sometimes referenced in title records or property tax assessments.

Does the new construction exemption apply to ADUs (Accessory Dwelling Units)?

If the ADU received its own certificate of occupancy, the 12-year clock runs from that date. If the ADU is part of a larger building that already has a CoO, the exemption status depends on the original building’s CoO date. Consult with your local building department for your specific situation.

Can I lose my owner-occupied exemption temporarily?

If you move out for an extended period, you may lose the exemption. Short absences (vacation, travel) generally don’t affect your primary residence status. Extended absences (moving to another home for months) can. There is no bright-line rule — the question is whether the unit remains your primary residence.

What if my building was converted from commercial to residential?

If a commercial building is converted to residential use and a new residential certificate of occupancy is issued, the 12-year clock may start from that new CoO date. This depends on local building department procedures and the specifics of the conversion.

Does the exemption transfer when I sell the property?

Yes. The new construction exemption is tied to the building, not the owner. If your building has 6 years remaining on its 12-year exemption when you sell, the new owner gets the remaining 6 years. Similarly, the owner-occupied exemption requires the new owner to occupy a unit; it doesn’t transfer automatically to an absentee buyer.

Track Your Exemption Status Automatically

Managing exemption windows, expiration dates, and the transition to cap compliance adds complexity to your property operations. LeaseBase tracks your exemption status, alerts you when your window is closing, and automatically applies the correct rules to each property.

Related Reading

• Washington Rent Cap Calculator
• Washington’s New Rent Cap Law (HB 1217): Complete Guide
• Seattle’s 180-Day Notice Rule
• Seattle EDRA: When a Rent Increase Triggers $6,000+ in Relocation Payments
• Tacoma vs Seattle vs Olympia: 3 Different Rent Rules
• Washington Rent Cap 2026: How 9.68% Is Calculated

← Washington Compliance Hub

What Is EDRA?

Economic Displacement Relocation Assistance (EDRA) is a Seattle ordinance that requires landlords to make a cash payment to tenants when a rent increase effectively prices them out of their home. The policy recognizes that a large rent increase can function as a de facto eviction — the tenant isn’t formally asked to leave, but the new rent is unaffordable.

EDRA was designed to cushion the financial impact on tenants who face displacement. For landlords, it creates a significant financial consideration that must be factored into any rent increase decision, particularly when you are considering a large adjustment to bring a below-market unit closer to current rates.

The law is codified in Seattle Municipal Code Chapter 7.24. It works in conjunction with Seattle’s 180-day notice requirement and the statewide rent cap under HB 1217.

When EDRA Is Triggered

In Seattle, EDRA is triggered when a landlord increases rent by 10% or more within any 12-month period. This applies to the cumulative increase over 12 months, not just a single notice. If you increased rent by 6% in March and another 5% in August, the combined 11% increase within 12 months triggers EDRA.

Key trigger rules:

• Threshold: 10% or more within 12 months
• Measurement period: Any rolling 12-month window, not calendar year
• Cumulative: Multiple smaller increases that total 10%+ within 12 months can trigger EDRA
• Applies to: Income-eligible tenants (more on this below)

Under HB 1217, landlords are limited to one rent increase per 12-month period, which means the cumulative trigger scenario is less likely going forward. However, the 12-month rolling window means you need to track the timing of increases carefully, especially during the transition period as the new law takes effect.

How to Calculate EDRA Payments

The EDRA payment equals three times the tenant’s current monthly housing cost. “Monthly housing cost” includes rent plus any utilities that are included in the rental agreement.

EDRA Calculation Formula

EDRA Payment = 3 x (Current Monthly Rent + Included Utilities)

Worked Examples

Example 1: Standard Apartment

Current rent: $2,000/month
Included utilities: $0
Proposed increase: 10% ($200/month)
Monthly housing cost: $2,000
EDRA payment: $2,000 x 3 = $6,000

Example 2: Unit with Included Utilities

Current rent: $1,800/month
Included utilities (water, sewer, garbage): $150/month
Proposed increase: 12% ($216/month)
Monthly housing cost: $1,800 + $150 = $1,950
EDRA payment: $1,950 x 3 = $5,850

Example 3: Higher-Rent Unit

Current rent: $3,200/month
Included utilities: $0
Proposed increase: 10% ($320/month)
Monthly housing cost: $3,200
EDRA payment: $3,200 x 3 = $9,600

These numbers add up quickly. A landlord with five units who increases all of them by 10% could face $30,000 or more in EDRA payments, depending on current rents and tenant eligibility.

Who Qualifies for EDRA

Not every tenant qualifies for EDRA. The program is limited to income-eligible tenants whose household income falls at or below certain thresholds set by the City of Seattle, typically based on the Seattle Area Median Income (AMI).

Key eligibility factors:

• Income threshold: Generally at or below 80% of AMI, though the specific threshold may be adjusted by city ordinance
• Household size: Income limits vary based on the number of people in the household
• Self-certification: Tenants may self-certify their income eligibility
• Verification: Landlords may request documentation but cannot unreasonably withhold the EDRA payment pending verification

The practical challenge for landlords is that you may not know your tenant’s income when you decide to increase rent. If you plan a 10%+ increase, you should assume EDRA applies and budget for the payment. If the tenant is not income-eligible, they won’t file for EDRA, and you won’t owe the payment.

EDRA Across Washington Cities

Seattle is not the only Washington city with relocation assistance requirements. Tacoma and Olympia both have their own versions, with notably different trigger thresholds and payment amounts.

City	Trigger Threshold	Payment Formula	Payment Example ($2,000 rent)
Seattle	10%+ within 12 months	3x current monthly housing cost	$6,000
Tacoma	5%+ increase	3x current monthly rent	$6,000
Olympia	7%+ increase	2.5x current monthly rent	$5,000

Tacoma’s 5% Threshold

Tacoma’s relocation assistance ordinance (Ordinance 29086) has the lowest trigger threshold in Washington at just 5%. For a $2,000/month unit, a rent increase of just $100/month ($2,000 to $2,100) triggers a $6,000 relocation payment.

This effectively means that Tacoma landlords face a binary choice with most rent increases: either stay under 5% or accept the relocation payment as a cost of doing business. For long-term tenants whose rent is significantly below market, the relocation payment becomes a predictable cost of any meaningful rent adjustment.

Olympia’s 7% Threshold at 2.5x

Olympia’s threshold sits between Seattle and Tacoma at 7%, with a lower multiplier of 2.5x instead of 3x. For a $2,000/month unit, a 7%+ increase triggers a $5,000 payment. While the payment is lower than Seattle or Tacoma, the threshold is still below the statewide rent cap (9.683% for 2026), meaning landlords who maximize their allowable increase will trigger relocation assistance.

How to Avoid Triggering EDRA

The most straightforward way to avoid EDRA is to keep rent increases below the trigger threshold. Here are practical strategies:

1. Implement Annual Below-Threshold Increases

Instead of letting rent stagnate for several years and then imposing a large catch-up increase, raise rent by a modest amount every year. In Seattle, staying under 10% avoids EDRA. In Tacoma, you need to stay under 5%.

Year 1: $2,000 → $2,180 (9% increase, under Seattle EDRA threshold)
Year 2: $2,180 → $2,375 (8.9% increase, under Seattle EDRA threshold)
Two-year result: $2,000 → $2,375 (18.75% total increase, $0 in EDRA)

Consistent annual increases avoid the trap of deferred maintenance-style rent adjustments where years of flat rent are followed by a large increase that triggers EDRA.

2. Calculate the Break-Even Point

Before issuing a large increase, calculate whether the additional revenue over 12 months exceeds the EDRA cost.

Current rent: $2,000/month
Option A: 9% increase (no EDRA) = $180/month x 12 = $2,160 additional revenue
Option B: 12% increase (EDRA triggered) = $240/month x 12 = $2,880 additional revenue, minus $6,000 EDRA = -$3,120 net loss in Year 1

In this example, the 12% increase doesn’t break even on the EDRA payment for over 2.5 years ($6,000 / ($240-$180) per month = 100 months at the marginal difference, or $6,000 / $240 = 25 months at the full additional amount). The 9% increase generates more total revenue over the first year.

3. Time Increases Carefully

Remember that EDRA measures the cumulative increase within any 12-month window. If you increased rent in January 2026, your next increase cannot occur until January 2027 at the earliest (per HB 1217’s one-increase-per-12-months rule). This naturally prevents cumulative trigger scenarios, but be careful during the transition period if you issued increases before HB 1217 took effect.

4. Use Vacancy Decontrol Instead

If a tenant vacates voluntarily, HB 1217’s vacancy decontrol provision allows you to set rent at any level for the next tenant. There is no EDRA payment owed when a unit is vacant. If your unit is significantly below market, natural turnover provides a penalty-free opportunity to reset the rent.

What Happens If You Don’t Pay EDRA

Refusing to pay EDRA when required exposes landlords to significant legal liability:

• Tenant claims for the EDRA amount. The tenant can pursue the full relocation payment through the courts or through the city’s enforcement mechanism.
• Additional damages. Courts may award additional damages beyond the EDRA amount for non-compliance.
• Attorney’s fees. The prevailing party in a landlord-tenant dispute under Washington law can recover attorney’s fees, which can easily exceed the EDRA amount itself.
• City enforcement actions. Seattle’s Office of Housing can investigate EDRA complaints and take enforcement action against non-compliant landlords.

The worst outcome for a landlord is implementing a 10%+ rent increase, not paying EDRA, and then facing a legal challenge. The combination of the EDRA payment, attorney’s fees, and potential additional damages can turn a modest rent increase into a five-figure liability.

EDRA and the HB 1217 Rent Cap: How They Interact

It’s important to understand how EDRA and the statewide rent cap work together:

• The HB 1217 cap (9.683% for 2026) limits how much you can increase rent
• EDRA thresholds determine whether you must make a relocation payment at that level of increase
• In Seattle, the cap (9.683%) is under the EDRA trigger (10%), meaning landlords who maximize their allowable increase under HB 1217 will not trigger EDRA in 2026
• In Tacoma, the cap (9.683%) far exceeds the EDRA trigger (5%), meaning nearly any meaningful rent increase will trigger EDRA
• In Olympia, the cap (9.683%) exceeds the EDRA trigger (7%), so increases above 7% trigger relocation payments

This interaction creates different strategic realities depending on which city your property is in. Seattle landlords can increase rent up to 9.683% without EDRA exposure. Tacoma landlords face EDRA for anything above 5%. Olympia landlords hit the threshold at 7%.

“EDRA is the hidden cost that most landlords don’t discover until they’ve already committed to a rent increase. In Tacoma, a $100/month rent increase can trigger a $6,000 payment. You have to model the EDRA cost before you issue the notice, not after.”

— Rachid Abadli, Founder & CEO at LeaseBase

EDRA Planning Worksheet

Use this worksheet to evaluate EDRA exposure before issuing a rent increase:

1. Current monthly rent: $________
2. Included utilities: $________
3. Monthly housing cost (rent + utilities): $________
4. Proposed new rent: $________
5. Percentage increase: ________%
6. City: Seattle / Tacoma / Olympia / Other
7. EDRA trigger threshold: 10% (Seattle) / 5% (Tacoma) / 7% (Olympia)
8. EDRA triggered? Yes / No
9. EDRA payment (if triggered): Monthly housing cost x 3 (Seattle/Tacoma) or x 2.5 (Olympia) = $________
10. Annual additional revenue from increase: (New rent – Current rent) x 12 = $________
11. Net Year 1 impact: Annual additional revenue – EDRA payment = $________
12. Months to break even on EDRA: EDRA payment / (New rent – Current rent) = ________ months

If the break-even period exceeds 12 months, consider reducing the increase to just below the EDRA threshold. You’ll generate more net revenue in Year 1 and avoid the administrative and legal complexity of EDRA compliance.

Use the Washington Rent Cap Calculator to model different increase scenarios and see your EDRA exposure instantly.

Frequently Asked Questions

Does EDRA apply to all rent increases above 10% in Seattle?

EDRA applies to rent increases of 10% or more within a 12-month period for income-eligible tenants. If the tenant’s household income exceeds the eligibility threshold, EDRA does not apply. However, landlords should assume eligibility when planning increases and budget for potential EDRA payments.

Can a tenant waive their right to EDRA?

No. EDRA is a mandatory obligation that cannot be waived by the tenant, even with a written agreement. Any lease provision purporting to waive EDRA is unenforceable.

Does EDRA apply to new tenants?

No. EDRA applies to rent increases for existing tenants. When a unit is vacant and you set the initial rent for a new tenant, EDRA does not apply. This is consistent with HB 1217’s vacancy decontrol provision.

What if my property is outside Seattle, Tacoma, and Olympia?

Currently, only Seattle, Tacoma, and Olympia have local EDRA-type requirements. Properties in other Washington cities are subject only to the statewide HB 1217 provisions, which do not include relocation assistance. However, other cities may adopt similar ordinances in the future.

How is EDRA paid?

EDRA is typically paid directly to the tenant before the rent increase takes effect. The specific payment process may vary by city. Check with your city’s housing office for current procedures.

Does EDRA apply if the tenant chooses to stay?

Yes. EDRA is triggered by the size of the increase, not by whether the tenant actually moves. If you increase rent by 10%+ and the tenant qualifies, you owe EDRA even if the tenant stays and pays the new rent.

Model Your EDRA Exposure

EDRA turns rent increase decisions into financial modeling exercises. The right increase isn’t always the maximum — it’s the one that optimizes your net revenue after accounting for relocation payments, notice timelines, and tenant retention.

LeaseBase calculates EDRA exposure automatically for Seattle, Tacoma, and Olympia properties, showing you the exact dollar impact of any proposed rent increase before you issue the notice.

Related Reading

• Washington Rent Cap Calculator
• Washington’s New Rent Cap Law (HB 1217): Complete Guide
• Seattle’s 180-Day Notice Rule
• Is Your Washington Rental Exempt?
• Tacoma vs Seattle vs Olympia: 3 Different Rent Rules
• Washington Rent Cap 2026: How 9.68% Is Calculated

← Washington Compliance Hub

Why Seattle’s 180-Day Rule Matters

Seattle requires landlords to provide 180 days’ written notice before any rent increase takes effect. That is six full months — longer than any other city in the United States. By comparison, Washington state requires 90 days, California requires 30 days, and most states require just 30 days for month-to-month tenancies.

This means if you want a rent increase to take effect on January 1, you need to deliver the notice no later than July 4 of the prior year. For landlords accustomed to shorter timelines, this planning horizon is a fundamental shift in how you manage your rental business.

The 180-day rule applies to all residential rental properties in Seattle, regardless of whether they are exempt from the state rent cap under HB 1217. Even if your building is new construction within the 12-year exemption window, you still must provide 180 days’ notice in Seattle.

The Legal Basis: Seattle Municipal Code

Seattle’s notice requirement is codified in Seattle Municipal Code Chapter 7.24, which governs the city’s residential landlord-tenant regulations. The 180-day notice period was adopted as part of Seattle’s broader tenant protection framework, which includes just cause eviction, relocation assistance, and the winter eviction ban.

The notice must be in writing and include:

• The current rent amount
• The proposed new rent amount
• The effective date of the increase
• The percentage increase
• Information about tenant resources and rights

In addition to the city requirements, landlords must also comply with the standardized notice form required by HB 1217 at the state level. In practice, this means Seattle landlords need to satisfy both sets of requirements in a single notice.

How EDRA Relocation Assistance Works

Seattle’s Economic Displacement Relocation Assistance (EDRA) is triggered when a landlord increases rent by 10% or more within a 12-month period. When EDRA applies, the landlord must pay the tenant relocation assistance equal to three times the current monthly housing cost.

The “current monthly housing cost” includes not just rent, but any utilities included in the lease agreement. For a tenant paying $2,000/month in rent with $200/month in included utilities, the EDRA payment would be:

$2,200 (monthly housing cost) x 3 = $6,600 in relocation assistance

EDRA eligibility is based on the tenant’s income. Tenants must be at or below certain income thresholds to qualify for relocation assistance. However, the burden of determining eligibility and making the payment falls on the landlord. If you increase rent by 10% or more and the tenant qualifies, you owe the EDRA payment regardless of whether you intended to trigger it.

For a complete breakdown of EDRA calculations, eligibility thresholds, and how to avoid triggering the requirement, see our dedicated guide: Seattle EDRA: When a Rent Increase Triggers $6,000+ in Relocation Payments.

EDRA Comparison Across Washington Cities

City	EDRA Trigger	Payment Amount	Income Eligibility
Seattle	10%+ increase within 12 months	3x current monthly housing cost	Income-eligible tenants
Tacoma	5%+ increase	3x current monthly rent	Income-eligible tenants
Olympia	7%+ increase	2.5x current monthly rent	Income-eligible tenants

Tacoma’s EDRA threshold is the most aggressive in the state, triggering at just 5%. This means a Tacoma landlord raising rent from $1,500 to $1,575 (a $75/month increase) could owe up to $4,500 in relocation assistance. Seattle’s 10% threshold gives landlords more room, but the 3x multiplier means the payments are substantial when triggered.

The Winter Eviction Ban

Seattle’s winter eviction ban prohibits most evictions between December 1 and March 1 in buildings with four or more units for tenants who qualify as low-to-moderate income. This ban applies to no-fault evictions and certain lease non-renewals — it does not protect tenants who are being evicted for cause (nonpayment, criminal activity, etc.).

The practical impact: if you need to issue a no-fault eviction or decline to renew a lease, you need to complete the process before December 1 or wait until March 1. Combined with the 180-day notice period for rent increases, this creates a narrow window for certain landlord actions during the fall and winter months.

Winter Ban Key Details

• Applies to: Buildings with 4+ units in Seattle
• Duration: December 1 through March 1
• Protected tenants: Low-to-moderate income (based on Seattle AMI thresholds)
• Exceptions: For-cause evictions (nonpayment, criminal activity, nuisance, lease violations)
• Does not apply to: Buildings with fewer than 4 units, market-rate tenants above income thresholds

Seattle’s Just Cause Eviction Ordinance

Seattle’s Just Cause Eviction Ordinance (SMC 22.206.160(C)) was adopted in 1980 — decades before Washington passed statewide just cause protections. The Seattle ordinance is more restrictive than the state law in several ways:

• It covers all tenancies from day one — there is no 12-month waiting period as under some interpretations of state law
• It includes additional enumerated causes specific to Seattle
• It requires relocation assistance for no-fault evictions at amounts set by the city
• It prohibits retaliatory evictions more broadly than state law

For Seattle landlords, the city ordinance is the operative law. Where the state law is stricter on a specific point, you follow the state law. Where the city ordinance is stricter, you follow the city ordinance. In practice, Seattle’s framework is almost always the controlling standard.

Practical Timeline for Seattle Landlords

Given the 180-day notice requirement, here is what a typical rent increase timeline looks like for a Seattle landlord:

Step	Timeline	Action
1	Month 1 (e.g., January)	Decide on target increase effective date (e.g., July 1)
2	Check current cap rate	Verify the WA Department of Commerce published maximum (9.683% for 2026)
3	Calculate EDRA exposure	If increase is 10%+ within 12 months, calculate 3x monthly housing cost
4	Prepare notice	Complete the standardized HB 1217 form with Seattle-specific disclosures
5	Deliver notice at least 180 days before effective date	For July 1 effective: deliver by January 2 at the latest
6	Retain proof of delivery	Certified mail, personal delivery with witness, or other verifiable method
7	If EDRA triggered	Pay relocation assistance before the increase takes effect
8	Increase effective date	New rent applies on the date specified in the notice

Planning Example

You want to increase rent on a Seattle unit from $2,000 to $2,150 (7.5% increase) effective January 1, 2027.

Step 1: Calculate — 7.5% is under the 9.683% cap. Compliant.
Step 2: Check EDRA — 7.5% is under the 10% EDRA trigger. No relocation payment required.
Step 3: Calculate notice deadline — 180 days before January 1 = July 5, 2026.
Step 4: Deliver the standardized notice form by July 5, 2026.
Step 5: New rent of $2,150 takes effect January 1, 2027.

Notice Period Comparison: Washington Cities and Beyond

Washington is unique in having dramatically different notice requirements depending on where your property is located. Here is the complete comparison:

Jurisdiction	Notice Period	EDRA Trigger	EDRA Amount
Seattle, WA	180 days	10%+ within 12 months	3x monthly housing cost
Tacoma, WA	120–210 days (tiered by increase amount)	5%+ increase	3x monthly rent
Olympia, WA	120–180 days (tiered)	7%+ increase	2.5x monthly rent
Washington State (HB 1217)	90 days	N/A at state level	N/A at state level
California (AB 1482)	30 days (under 10%), 90 days (over 10%)	N/A	N/A
Oregon	90 days	N/A	N/A
Most other U.S. states	30 days	N/A	N/A

Tacoma’s tiered notice system is worth highlighting. For increases under 5%, landlords must provide 120 days’ notice. For increases of 5% or more, the notice period extends to 210 days — exceeding even Seattle’s 180-day requirement. This makes Tacoma the city with the longest potential notice period in the country for larger rent increases.

What Happens If You Don’t Comply

Failing to provide adequate notice in Seattle can have serious consequences:

• The rent increase is void. An increase served with inadequate notice is unenforceable. The tenant can continue paying the prior rent amount.
• EDRA liability. If you trigger EDRA and don’t pay, the tenant can recover the relocation assistance amount plus additional damages.
• Wrongful eviction claims. Attempting to evict a tenant for not paying an improperly noticed rent increase exposes you to wrongful eviction liability.
• Attorney’s fees. Under Washington’s Residential Landlord-Tenant Act, the prevailing party in a landlord-tenant dispute can recover attorney’s fees.

Tips for Multi-City Washington Landlords

If you own properties in multiple Washington cities, you are effectively managing under multiple regulatory regimes simultaneously. Here are strategies to stay compliant:

1. Default to the strictest rule. If you own properties in Seattle and Spokane, adopt the 180-day notice period as your standard. You’ll be compliant everywhere.
2. Track EDRA thresholds by city. Tacoma triggers at 5%, Olympia at 7%, Seattle at 10%. A 6% increase is EDRA-free in Seattle and Olympia but triggers a payment in Tacoma.
3. Use property management software that tracks local rules. LeaseBase tracks city-specific compliance requirements for each property, including notice periods and EDRA thresholds.
4. Calendar your notice deadlines. With a 180-day lead time in Seattle, you need to start planning rent increases six months in advance. Set annual calendar reminders.
5. Build EDRA into your financial models. When evaluating whether to increase rent above the EDRA threshold, calculate the total cost including the relocation payment. A 10% increase that triggers $6,000+ in EDRA may not be worth the additional monthly revenue.

“Six months is a lifetime in property management. In the time it takes for a Seattle rent increase to become effective, a California landlord could have issued and implemented two separate increases. The 180-day rule doesn’t just change your timeline — it changes your entire planning cadence.”

— Rachid Abadli, Founder & CEO at LeaseBase

Frequently Asked Questions

Does the 180-day rule apply to all properties in Seattle?

Yes. The 180-day notice period applies to all residential rental properties in Seattle, regardless of size, type, or whether they are exempt from the state rent cap under HB 1217. Even new construction within the 12-year exemption window must provide 180 days’ notice for rent increases in Seattle.

Can I avoid the 180-day rule by using a fixed-term lease?

No. The notice requirement applies to all rent increases, whether the tenancy is month-to-month or on a fixed-term lease. If you are renewing a lease with a higher rent, you must provide 180 days’ notice of the new rent amount.

What if my tenant agrees to a shorter notice period?

The 180-day requirement cannot be waived by the tenant. Even with a written agreement to accept shorter notice, the legal requirement stands. Any rent increase served with less than 180 days’ notice is unenforceable.

How does the 180-day rule interact with the HB 1217 cap?

They operate simultaneously. HB 1217 limits how much you can increase rent (9.683% for 2026). Seattle’s rule determines how much notice you must provide (180 days). You must comply with both. A rent increase that satisfies the cap but is served with only 90 days’ notice is invalid in Seattle.

Does EDRA apply to every tenant?

No. EDRA applies to income-eligible tenants at or below certain income thresholds set by the city. However, as the landlord, you are responsible for determining eligibility and making the payment. If in doubt, assume EDRA applies and budget accordingly.

Stay Ahead of Seattle’s Rules

Seattle’s 180-day notice requirement, combined with EDRA, the winter eviction ban, and just cause protections, makes it one of the most tenant-protective cities in the country. Compliance requires planning further ahead than landlords in any other U.S. market.

LeaseBase tracks all Seattle-specific requirements automatically, including 180-day notice deadlines, EDRA threshold calculations, and winter ban windows. Set it once and get alerts when your notice window opens.

Related Reading

• Washington Rent Cap Calculator
• Washington’s New Rent Cap Law (HB 1217): Complete Guide
• Seattle EDRA: When a Rent Increase Triggers $6,000+ in Relocation Payments
• Is Your Washington Rental Exempt?
• Tacoma vs Seattle vs Olympia: 3 Different Rent Rules
• Washington Rent Cap 2026: How 9.68% Is Calculated

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