This Spokane County multifamily market update covers Washington’s 2027 rent increase limit, Spokane’s new cooling requirements for rental properties, and a tax consideration for investment properties impacted by recent local wildfires.
SPOKANE COUNTY MULTIFAMILY MARKET UPDATE – AROUND TOWN
1.
Washington State’s maximum annual rent increase for 2027 is 10%, up from 9.683% in 2026. This limit applies to rent increases for existing tenants taking effect between January 1 and December 31, 2027, and does not limit the initial rent charged to a new tenant. The cap generally applies to residential rental properties statewide, with exemptions including properties 12 years old or newer, certain regulated affordable housing, and qualifying owner-occupied duplexes, triplexes, and fourplexes.
2.
In July 2026, the Spokane City Council passed Ordinance C36877, the “Renter’s Right to Cooling,” requiring adequate cooling in at least one room, with new construction required to comply by January 1, 2027 and existing rentals by January 1, 2031. Costs could range from under $200 for portable units to an estimated $9,000–$15,000 per unit for older buildings requiring significant electrical or mechanical upgrades. Tenants may be able to install cooling themselves and deduct up to $500 from rent if a property is non-compliant. In early August, I had the pleasure of attending a meeting with an owner of several large apartment complexes in Spokane, two City Council members, and the property managers to discuss the ordinance, and although it has passed, conversations remain ongoing regarding potential exemptions or accommodations for older buildings. City of Spokane: Renter’s Right to Cooling Ordinance
3.
The recent Spokane-area wildfires have been tragic, and my thoughts and prayers are with all of the individuals and families who have lost homes, property, or otherwise been impacted. If an investment property is destroyed by fire and the owner receives insurance proceeds above their tax basis, IRS Section 1033 may allow them to defer the resulting capital gain by reinvesting the proceeds into qualifying replacement real estate, rather than paying the tax immediately. Owners generally have two years after the end of the tax year in which the gain is realized to acquire replacement property, although different or extended deadlines can apply in federally declared disaster areas, so impacted owners should consult their CPA or tax advisor.
APRIL SALES
| Monroe Street Triplexes and Development Site | 1007 W Montgomery Ave, Spokane | 6 | 1905 |
| College Apartments | 317 College Ave, Spokane | 14 | 1940 |
| Felts Apartments | 701 S Felts Rd, Spokane | 7 | 2023 |
FEATURED LISTINGS
FELTS TOWNHOMES
$3,095,000 | 12 UNITS
THE HOWARD BUILDING
UNDER CONTRACT!
EASTSIDE ESTATES
$1,495,000 | 5 UNITS
VILLA MARIA APARTMENTS
$1,050,000 | 15 UNITS
29TH AVE FOURPLEX
$685,000 | 4 UNITS
ASH APARTMENTS
$495,000 | 7 UNITS
For a monthly comparison, see our Spokane County Multifamily Market Update – July 2026.
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Jordan Lester, CCIM, MBA, specializes in advising clients with the acquisition and disposition of multifamily investment properties. With a primary focus in Spokane County and an expert understanding of the latest market trends, Jordan is committed to maximizing his client’s financial goals to achieve their real estate objectives. Jordan began his real estate career as a broker’s assistant for three years with SVN Cornerstone, which gave him valuable knowledge and experience to jumpstart his career as a broker. To get in touch with Jordan, email jordan.lester@svn.com or call 509.496.6922