Key Takeaways
- EDRA (Economic Displacement Relocation Assistance) requires Seattle landlords to pay relocation costs when rent increases hit 10% or more within 12 months
- The payment equals 3x the tenant’s current monthly housing cost — for a $2,000/month unit, that is $6,000+
- Tacoma triggers relocation at just 5%+ and Olympia at 7%+ — lower thresholds with different multipliers
- Only income-eligible tenants qualify, but landlords bear the burden of determining eligibility
- The most reliable way to avoid EDRA is to stay below the trigger threshold with smaller, annual increases
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:
- Current monthly rent: $________
- Included utilities: $________
- Monthly housing cost (rent + utilities): $________
- Proposed new rent: $________
- Percentage increase: ________%
- City: Seattle / Tacoma / Olympia / Other
- EDRA trigger threshold: 10% (Seattle) / 5% (Tacoma) / 7% (Olympia)
- EDRA triggered? Yes / No
- EDRA payment (if triggered): Monthly housing cost x 3 (Seattle/Tacoma) or x 2.5 (Olympia) = $________
- Annual additional revenue from increase: (New rent – Current rent) x 12 = $________
- Net Year 1 impact: Annual additional revenue – EDRA payment = $________
- 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.