Housing Cost Increase Percentage
How do I calculate a housing cost increase?
Seattle's EDRA (Economic Displacement Relocation Assistance) program requires landlords to pay about three months of housing costs to tenants that vacate after a10% or more increase to their rent/housing costs within 12 months. Eligible households must also earn 80% or less than the AMI (Average Median Income) and give notice to their landlord before applying for EDRA.
Costs to Consider When Calculating a Housing Increase
Housing costs you need to take into account when calculating a rent increase include:
- Base rent
- Utilities (if paid directly to the landlord)
- Recurring monthly charges paid directly to the landlord (e.g. storage, parking, pet rent)
An EDRA-qualifying housing cost increase could be a single increase of 10% or multiple increases which, when added together, increase housing costs by 10% or more within 12 months.
Example of a single increase:
- Current monthly housing cost is $1000 and the increase is $100.00 per month, bringing the new monthly housing amount to $1100.00 (10% increase)
Example of multiple increases:
- The monthly housing cost was $1000
- In January it increased by $80 a month
- In March of the same year it increased by an additional $20 a month
- These increases total $100 in less than 12 months, bringing the new monthly housing amount to $1100 (10% increase)
How to Find the Percentage of Increase
- Using our previous example, subtract the current housing cost from the new total amount ($1100 - $1000 = $100)
- Divide the amount of increase by the current housing cost ($100 / $1000 = 0.10)
- Move the decimal two places to the right to find the percentage increase (10. = 10% increase)
EDRA Process and Timeline
Don't forget to attach your EDRA notice when you increase housing costs by 10% or more within the same 12 months period.