| Q2 • 2025 |
TMGNorthwest
MARKET PULSE
A Snapshot of the Pacific Northwest Property Management Market
The Q2 2025 Market Pulse highlights a robust single-family rental market across Southwest Washington (SWWA), Portland, and the Tri-Cities, where rents, tenant retention, and leasing activity continues to outperform national averages. Portland remains the highest-priced market with average rents at $2,695 – over $400 above the national average of $2,295. Portland also maintains strong tenant stability with an average tenancy of 3.52 years and a low delinquency rate of 0.71%. SWWA follows closely with rents averaging $2,448, average tenancy exceeding 4.3 years, and a stable 1.03% delinquency rate, despite a modest seasonal rent dip. Tri-Cities, once considered a more affordable region, has now surged past expectations, driven by fast leasing and minimal delinquency. Tri-Cities stands out as a high-growth market with a significant $200 rent increase in March and continued strength into Q2, now averaging $2,478. With the lowest delinquency rate across all regions at just 0.14% and fastest leasing time of only 29 days, Tri-Cities is gaining rapid momentum. Together, these indicators affirm these metro areas as stable and high-performing regions for single-family
investments, combining strong returns with long-term tenant reliability.
Strategic Takeaways
- Southwest Washington remains a stable, long-term investment market with high tenant retention, steady rent premiums and improving lease-up times.
- Portland region remains a high-rent urban market with reliable tenants and strong income potential, despite slower lease-ups and legal regulations.
- Tri-Cities is a fast-growing, low-risk market with accelerating demand minimal delinquency and the quickest leasing velocity across all regions.
LEGAL UPDATES
Washington State:
On May 7, 2025, Washington State’s House Bill 1217 was signed into law as an emergency measure, taking immediate effect. The bill introduces significant changes to landlord-tenant regulations, rolled out in two phases: May 7 and July 27, 2025.
Key Provisions: Rent Increase Restrictions (Effective May 7, 2025)
- Rent Cap: Increases are now limited to the lower of 7% + CPI or 10%. (Current CPI = 10%; effective Jan 1, 2026 = 9.683)
- New Tenancy Rule: No rent increases may be issued within the first 12 months of a tenancy.
- Notice Period: All rent increases must be delivered with a minimum of 90 days’ notice.
Statutory Form Requirement: The state mandates the use of an official Statutory Rent Increase Form. - Lease Type Parity: Landlords must ensure rental parity between lease types for a specific unit, limiting rent variation to no more than 5% between month-to-month and fixed-term leases.
- Service of Notices: As of May 7, rent increase and renewal notices must be personally served. Beginning July 27, notices must also be sent via certified mail.
Exemptions to Rent Caps:
Certain tenancy types are exempt from rent increase limitations. Landlords must include specific supporting documentation and rationale within the notice to claim an exemption. Exemptions include:
- New Construction: Residential units are exempt for 12 years following the issuance of the first certificate of occupancy. This does not apply to renovated or rehabilitated buildings.
- Owner-Occupied Triplexes and Fourplexes: Properties where the owner occupies one of the units may qualify, provided the property is not owned by a corporation or similar entity.
For the full list of exemptions, refer to Section 102 of Chapter 59.18 RCW.
City of Vancouver Rental Registration Program:
Starting January 2026, all long-term rental property owners will be required to register their units each year and pay a $30 per-unit fee. This fee will be waived for the first year for units registered within the first 90 days of the program launch. Rental registration will require submission of unit-level data, such as address, number of bedrooms and bathrooms, year built, and whether the unit is income-restricted. Inspections will begin in mid to late 2027 after the registration system is established and shaped with community input.
The ordinance also establishes a tenant relocation fund to help lower-income households move from uninhabitable units. Certain types of housing, such as short-term rentals, shelters, hospitals and owner-occupied units, are exempt from the requirements, and fee waivers are available for qualifying income-restricted properties.
SW WASHINGTONRental Market
| Average Market Rent $2,448 |
Average Days on Market 34 |
Average # Years of Tenancy 3.69 |
Delinquency 1.03% |
PORTLANDRental Market
| Average Market Rent $2,695 |
Average Days on Market 40 |
Average # Years of Tenancy 3.52 |
Delinquency 0.71% |
TRI-CITIESRental Market
| Average Market Rent $2,478 |
Average Days on Market 29 |
Average # Years of Tenancy 2.3* |
Delinquency .14% |
 All data in this report is pulled from TMG single family rental statistics and Zillow Rental Manager Market Trends.
