Plain Text Law

Article Vi. Central Data Collection, Rent Guidelines, and Rent Stabilization.

Montgomery County, Md., Code § 29-51 (2026)

Sec. 29-51. Rental housing data collection.Copy Citation

(a)
The County Executive must establish procedures to collect and analyze housing data for rental dwelling units in the County, and must make every effort to centralize the data collection functions to minimize the burden for landlords.
(b)
The reporting process is mandatory for landlords of licensed rental housing, including new dwelling units as they come on the market and all vacant units.
(c)
The data must be collected annually.
(d)
The Director must use a survey form for collecting data designed to minimize the repeated reporting of unchanged information, while maintaining an accurate data base.
(e)
The Director, at a minimum, must include in the survey a questionnaire for each landlord to certify whether the occupying tenant completed a criminal history and credit screening addendum as required under Section 29-28(h)(2). The survey form must request the date of the signed addendum.
(f)
The housing data collected must be used to measure the supply and availability of rental housing, as well as other operating characteristics. Each landlord must provide the following to the County:
(1)
The location of each rental facility, including the zip code;
(2)
Structure type;
(3)
Year built;
(4)
Distribution of units by standard bedroom sizes;
(5)
The number of units by bedroom size that were re-rented during the month;
(6)
The number of vacant days applicable to those units;
(7)
The rent charged for each rental unit;
(8)
The rent charged for each re-rented unit before vacancy; and
(9)
The new turnover rent charged for each re-rented unit.
(g)
Each landlord must maintain records for each project on an aggregate basis containing the following information, that must be made available to the County upon request:
(1)
A description of utilities that are included in the rent;
(2)
The landlord's actual monthly utility costs, including gas, electric, heating, fuel, trash removal, and water and sewer;
(3)
The availability of certain amenities, including air conditioning, wall-to-wall carpeting, dishwasher, garbage disposal, washer/dryer in apartment unit or on the site, patio-balcony, swimming pool and tennis courts;
(4)
The actual operating expenses, by category;
(5)
The actual operating revenues, by category;
(6)
A schedule of any other fees and income; and
(7)
Tenant rent/income ratio for prospective tenants that protects the confidentiality of personal income information and that is available to the landlord as part of the normal renting process.
(h)
Each landlord of a rental dwelling unit in a common ownership community must report to the governing body of the common ownership community the rental status of each unit owned by the landlord. Any status change must be reported to the governing body, or its delegated agent, within 10 days after the change.
(i)
The governing body of a common ownership community must file with the Department information provided by the landlord identifying each dwelling unit in the community that is rented by the owner to another person. The information must identify the unit and the name and address of the landlord to the extent that the landlord provides this information.
(j)
The Director is primarily responsible for controlling rental housing data surveys for the County. The Director must share this information with other governmental agencies that need it without invading individual privacy. In this regard, the Director must coordinate survey activities with other County departments, and make available to the departments the results of all surveys in accordance with applicable procedure.
(k)
The Director must publish, unless the publication is prohibited under State law, the information collected in the rental housing data survey on the County website, including a table listing all rental housing consisting of two or more dwelling units by unit type and building type.
(l)
Any landlord who violates any provision of this Section is liable for payment of a civil penalty in an amount not to exceed $1,000 for each violation.
Montgomery County, Md., Code § 29-52 (2026)

Sec. 29-52. Referral services.Copy Citation

(a)
The County Executive must develop and operate a central referral service for the use of tenants, landlords, and government agencies. The operation of the referral service may be contracted to the Housing Opportunities Commission.
(b)
Housing information and referral services to be offered must include, but are not limited to:
(1)
Counseling services to tenants who need alternative housing or financial assistance;
(2)
Validation of tenants' need for alternative housing;
(3)
Determination of eligibility for available financial assistance for housing programs based upon income;
(4)
Listing of agencies that can assist in locating housing;
(5)
Listing of available financial assistance programs.
(c)
In coordination with other public and private agencies, the Director must maintain a listing of the location and characteristics of vacant dwelling units, and their rent rates.
Montgomery County, Md., Code § 29-53 (2026)

Sec. 29-53. Voluntary rent guidelines; review of rent increases.Copy Citation

(a)
The County Executive must issue annual voluntary rent increase guidelines not later than March 1 of each year. The Executive must publish the guidelines in the County Register and on the County website.
(b)
The guidelines must be based on the increase or decrease in the residential rent component of the Consumer Price Index for All Urban Consumers (CPI-U) for the Washington-Arlington-Alexandria Core Based Statistical Area (CBSA) as published by the United States Department of Labor, Bureau of Labor Statistics, or any successor index, for the preceding calendar year, unless an alternative standard better reflecting the costs of rental housing in the County is established by regulation.
(c)
The Department should encourage landlords to hold rent increases at the lowest level possible. The Department may review any rent increase that appears to be excessive and encourage the landlord to reduce, modify, or postpone the increase.
Montgomery County, Md., Code § 29-54 (2026)

Sec. 29-54. Rent adjustments; notice requirements.Copy Citation

(a)
A landlord must not increase the rent until 90 days after the landlord gives the tenant written notice of the increase. A landlord must not impose more than one rent increase on a tenant in any 12-month period. Each written rent increase notice must contain the following information:
(1)
The amount of monthly rent immediately preceding the effective date of the proposed increase (old rent), the amount of monthly rent proposed immediately after the rent increase takes effect (new rent), and the percentage increase of monthly rent.
(2)
The effective date of the proposed increase.
(3)
The applicable rent increase guideline issued under Section 29-53.
(4)
A notice that the tenant may ask the Department to review any rent increase that the tenant considers excessive.
(5)
Other information that the landlord deems useful in explaining the rent increase.
An otherwise valid notice of a rent increase is not invalid because the notice contained an incorrect rent increase guideline number if the landlord reasonably believed that the number was correct.
(b)
Written notice may be delivered to the tenant by any reasonable means. However, a notice has not been delivered unless the notice is mailed via the United States Postal Service to the tenant's dwelling unit, or unless a signed receipt is obtained from the tenant or the tenant's representative. If the tenant is notified by mail, other than registered or certified mail, the landlord must certify, by affidavit dated at the time of mailing, that the landlord has mailed the notice. The landlord must retain a copy of the affidavit in the landlord's records.
(c)
For the purposes of these notice requirements, the day after the postmark date is the date of delivery if the notice was delivered to the proper person by U.S. mail. If any notice is sent by U.S. certified or registered mail, the receipt or registration is presumptive evidence that the notice was delivered to the party to which addressed, and the date of the receipt or registration is the postmark date.
(d)
When the last day for performing any act prescribed under this Chapter falls on a Saturday, Sunday or legal holiday, the performance of that act is timely if it is performed on the next day that is not a Saturday, Sunday or legal holiday.
Montgomery County, Md., Code § 29-55 (2026)

Sec. 29-55. Rent increases and late fees following the COVID-19 state of emergency – prohibited.Copy Citation

(a)
Definitions. In this Section, the following terms have the meanings indicated.
Emergency means the catastrophic health emergency declared by the Governor of Maryland on March 5, 2020, as amended or extended by the Governor, under Section 14-3A-02 of the Public Safety Article of the Maryland Code.
Tenant has the meaning stated in Section 29-1. Tenant includes an existing tenant. Tenant does not include a prospective tenant.
(b)
Rent increases above guidelines – when prohibited. A landlord must not increase a tenant’s rent to an amount that exceeds the voluntary rent guidelines under Section 29-53 if:
(1)
the rent increase would take effect during the emergency; or
(2)
notice of the rent increase does not comply with subsection (c) and Section 29-54.
(c)
Notices of rent adjustments.
(1)
During the emergency and until May 15, 2022, a landlord must not notify a tenant of a rent increase if the increase would exceed the voluntary rent guidelines under Section 29-53.
(2)
If a landlord provided notice of a rent increase to a tenant prior to the emergency and the increase would exceed the voluntary rent guidelines under Section 29-53, the landlord must inform the tenant in writing:
(A)
to disregard the notice; or
(B)
that the increase is amended to be less than or equal to the voluntary rent guidelines under Section 29-53.
(d)
Late fees – when prohibited. A landlord must not charge a fee to a tenant for the nonpayment or late payment of rent due during the emergency, or due between the expiration of the emergency and May 15, 2022, unless the landlord first provides to the tenant, in a form prescribed by the Director:
(1)
a notification that the tenant may qualify for the waiver of late fees under subsection (e); and
(2)
an attestation for the tenant to sign to receive the waiver.
(e)
A landlord must waive late fees for the nonpayment or late payment of rent due during the emergency, or due between the expiration of the emergency and May 15, 2022, if a tenant attests, in the application prescribed by the Director under subsection (d), that the tenant:
(1)
has experienced a COVID-19 related financial hardship;
(2)
has a gross household income at or below 50% of the area median income for the previous 30 days, or for the 2020 tax year; and
(3)
has been a Montgomery County resident since August 2020 or earlier.
(f)
A landlord must not require proof of, or challenge the veracity of, a tenant’s attestation under this Section.
(g)
Notice of expiration of emergency. The Department must post on its website information about the requirements of this Section, including the date that the emergency expired, and the date that requirements under this section expire.
Sec. 4. Short title. This Act may be cited as the “COVID-19 Renter Relief Act”.
Montgomery County, Md., Code § 29-56.Rent (2026)

Sec. 29-56.Rent stabilization – definitions.Copy Citation

Definitions. In Sections 29-56 through 29-62, the following terms have the meanings indicated:
Banked amount means the dollar amount of an annual rent increase allowance that a landlord did not use to increase the rent for a regulated unit.
Base rent means rent charged for a regulated rental unit under a lease, exclusive of any rental discounts, incentives, concessions, or credits that are:
(1)
offered by the landlord;
(2)
accepted by the tenant; and
(3)
itemized in the lease separate from the rent.
Capital improvements mean permanent structural alterations to a regulated unit intended to enhance the value of the unit. Capital improvements include structural alterations required under federal, state, or County law. Capital improvements do not include ordinary repair or maintenance of existing structures.
CPI-U means the Consumer Price Index for All Urban Consumers for the Washington-Arlington-Alexandria Area, published by the U.S. Bureau of Labor Statistics.
Regulated rental unit or regulated unit means a rental unit that is not exempted under Section 29-60.
Substantial renovation means permanent alterations to a building that:
(1)
are intended to enhance the value of the building; and
(2)
cost an amount equal to at least 40 percent of the value of the building, as assessed by the State Department of Assessments and Taxation.
Montgomery County, Md., Code § 29-57 (2026)

Sec. 29-57. Annual rent increase allowance.Copy Citation

(a)
Annual rent increase allowance. The Director annually must calculate a rent increase allowance for regulated rental units equal to the lesser of:
(1)
CPI-U plus 3 percent; or
(2)
6 percent.
(b)
Publication. The Director must publish the annual rent increase allowance in the County Register and on the County website.
(c)
Duration. A rent increase allowance under subsection (a) remains in effect for a 12-month period, beginning July 1st of each year and ending on June 30th of the following year.
Montgomery County, Md., Code § 29-58 (2026)

Sec. 29-58. Rent increases – in general; vacant units; and limited surcharges for capital improvements.Copy Citation

(a)
In general. Except as provided under subsection (b), upon a lease renewal or new lease agreement, a landlord must not increase the rent of a regulated rental unit to an amount greater than:
(1)
the base rent; plus
(2)
the rent increase allowance under Section 29-57; plus
(3)
any banked amount; and
(4)
does not exceed 10 percent of the base rent.
(b)
Troubled or at-risk properties. Subject to Method (2) regulations adopted by the Director, a regulated unit located in a property designated by the Department as “troubled” or “at risk” under Section 29-22(b) must not increase rent in excess of an amount the Director determines necessary to cover costs required to improve habitability.
(c)
Rent increase – vacant unit. Subject to Method (2) regulations, the Director must determine the allowable annual rent increase for a regulated unit that returns to the market for rent after being vacant for more than 12 months with no active lease, either by a written or oral agreement.
(d)
Limited surcharge for capital improvements. Subject to subsection (e), the Director must grant a landlord’s petition to add a surcharge to the amount permitted under subsection (a) if, in accordance with Method (2) regulations, the Director determines:
(1)
the surcharge is limited to an amount necessary to cover the costs of capital improvements to the regulated unit, excluding the costs of ordinary repair and maintenance;
(2)
the surcharge does not take effect until after the capital improvements are completed;
(3)
if the capital improvements are for all rental units within the building, the surcharge:
(A)
is divided equally among the units;
(B)
is prorated over at least 96 months; and
(C)
does not exceed 20 percent of the base rent;
(4)
if the capital improvements apply only to certain regulated rental units within the building, the surcharge:
(A)
is divided equally among the affected units;
(B)
is prorated over at least 60 months; and
(C)
does not exceed 15 percent of the base rent;
(5)
the surcharge for each unit ends once the costs of the capital improvements, including any interest and service charges, have been recovered by the landlord;
(6)
the capital improvements would protect or enhance the health, safety, and security of the tenants or the habitability of the rental housing;
(7)
if the capital improvements would result in energy cost savings:
(A)
the savings would be passed on to the tenant; and
(B)
either:
(i)
the improvements would result in a net savings in the use of energy in the building; or
(ii)
the improvements are intended to comply with applicable law;
(8)
the capital improvements are depreciable under the federal Internal Revenue Code;
(9)
the applicant has certified to the Director the costs of the capital improvements, including any interest and service charge; and
(10)
the applicant has certified to the Director that required governmental permits and approvals have been granted.
(e)
Surcharge – additional requirements.
(1)
A landlord must maintain, and must make available to a tenant upon request, all plans, contracts, specifications, and permits related to any capital improvements for which a surcharge has been granted.
(2)
Immediately upon the completion of capital improvements under this Section, a landlord must permit the return to affected rental units of any tenants displaced due to the improvements.
Montgomery County, Md., Code § 29-59 (2026)

Sec. 29-59. Fair return.Copy Citation

(a)
Fair return rent increase. In accordance with this Section and Method (2) regulations adopted by the Director:
(1)
a landlord may apply to the Director to increase rent for a regulated unit in an amount that exceeds the annual rent increase allowance; and
(2)
the Director must grant the application if the Director finds that the increase is necessary for the landlord to obtain a fair return on the regulated unit.
(b)
For purposes of this Section, fair return means a return on investment:
(1)
sufficient to offset operating expenses; and
(2)
commensurate with returns on investments in other enterprises having comparable risks.
(c)
The Director must adopt Method (2) regulations necessary to implement the requirements of this Section, including regulations to establish:
(1)
a formula to determine the rent increase necessary to obtain a fair return for a regulated unit;
(2)
application requirements, including the information an applicant must submit to demonstrate the rent necessary to obtain a fair return;
(3)
a uniform system and procedures for processing applications;
(4)
criteria the Director must use to evaluate and to grant or deny an application; and
(5)
the duration of a rent increase approved under this Section.
Montgomery County, Md., Code § 29-60 (2026)

Sec. 29-60. Exempt rental units.Copy Citation

(a)
Exemptions. The requirements of Section 29-58 do not apply to:
(1)
a newly constructed unit that has been offered for rent for less than 23 years;
(2)
a unit in a licensed facility, the primary purpose of which is the diagnosis, cure, mitigation, and treatment of illnesses;
(3)
a unit in a facility owned or leased by an organization exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code if the primary purpose of the organization is to provide temporary shelter for qualified clients;
(4)
an owner-occupied group house;
(5)
a religious facility, including a church, synagogue, parsonage, rectory, convent, and parish home;
(6)
a transient lodging facility subject to Chapter 54;
(7)
a school dormitory;
(8)
a licensed assisted living facility or nursing home;
(9)
a building originally designed and constructed to contain only 2 dwelling units, one of which the owner currently occupies as a principal residence;
(10)
an accessory dwelling unit;
(11)
a unit subject to a regulatory agreement with a governmental agency that restricts occupancy of the unit to low and moderate income tenants;
(12)
subject to Method (2) regulations issued by the Department, a unit located within a substantially renovated building if:
(A)
the substantial renovation occurred within the prior 23 years; and
(B)
the building is not in violation of Chapters 8, 26, or 29; and
(13)
a rental unit owned by a landlord who:
(A)
owns 2 or fewer rental units within the County; and
(B)
is either:
(i)
a natural person; or
(ii)
the trust or estate of a decedent.
(b)
Expiration of exemption. An exemption under subsection (a) expires when the conditions entitling the unit or facility to an exemption cease to exist.
Montgomery County, Md., Code § 29-61 (2026)

Sec. 29-61. Regulation of fees.Copy Citation

(a)
Regulations. The Director must issue Method (2) regulations regarding limitations on fee increases or new fees charged by the landlord to the tenant for a regulated rental unit.
(b)
Fee schedule. At the discretion of the Director, a fee schedule may be included, as a part of the regulations.
Montgomery County, Md., Code § 29-62 (2026)

Sec. 29-62. Rent stabilization data collection.Copy Citation

(a)
In accordance with the requirements under Section 29-51, a landlord must comply with and submit data to the Department regarding regulated rental units, rents, fees charged to tenants, and notices of rent increases.
(b)
The annual rental housing survey data collected by the Department under Section 29-51 must be made available for the Council to review and determine the effectiveness and compliance with this Act.
Montgomery County, Md., Code § 29-63 (2026)

Sec. 29-63 — Sec. 29-65.Reserved by 2000 L.M.C., ch. 32, § 1.Copy Citation