New rent control rules in Montgomery County: What tenants and landlords need to know

SILVER SPRING, Md. - Montgomery County’s new rent stabilization law is now in effect following regulations passed this week by the county council.

Bill 15-23 was approved last summer, but the regulations adopted by Montgomery County this week allow the bill to officially go into effect. 

Under the law, landlords can raise rent by 6% at most or the rate of inflation plus 3%, whichever is lower.

Montgomery County's rent stabilization law includes:

• Limitations to rent increase amounts for new leases, renewals, multi-year leases, and previously vacant units,
• Limited additional rent increases, if approved by Housing Director, in response to landlord applications for Fair Return increases or Capital Improvement surcharges,
• Exemptions for Substantially Renovated rental buildings, and
• Regulation of permitted fees.

The bill does not apply to every city in Montgomery County, according to Matt Losak, the executive director of the Montgomery County Renters’ Alliance.

Losak told FOX 5 that Gaithersburg and Rockville are exempt because they operate as their own municipalities. 

Takoma Park has its own rent stabilization program. 

"A responsible landlord is only going to raise your rent enough to maintain the profit margin, but not enough to gouge you out of your home. So, the 6% was intended really as an anti-gouging measure," Losak said. "Really, we have seen too many irresponsible landlords frankly terribly greedy raising rents in the double digits. Just two weeks ago, we received complaints from two people in their 80s who have lived in their apartments for 15 years and receive a 52% rent increase and a 70% rent increase. Absolutely outrageous."

When the bill was first approved in 2023, criticism came from some local developers and property owners who claimed many areas of critical growth could be jeopardized due to rent caps.

Losak said right now, the average cost for a 1-bedroom apartment for rent in Montgomery County ranges between $1,850 and $2,000, but certainly in some areas, rental costs are much higher. 

Kristin Williams lives in Silver Spring and said she pays about $2,500 a month, which includes parking fees.

"Thank God, please do. Please cap it at 6%. I think when I first moved in, it was capped at 10%. So, capping at 6% would be great. It definitely took a jump after the pandemic. So, capping it would work well," Williams said. "I would hope to become a homeowner soon, but I can’t afford it with the rent the way it is and other expenses. It’s too expensive, especially around here and to live around here."

Enika Barnes also lives in Silver Spring and said her rent is closer to $1,700 a month and increases have been subtle over the past three years. Still, she has concerns that the cost could rise dramatically.

"It’s not cheap. With the cost of infrastructure going up, there’s constantly apartment complexes being built, parking garages being upgraded, Whole Foods is right there, and the metro is right there. The cost of rent is going to go up. I do think some landlords take it too far," Barnes said. "I live right next to this new campus right here. I think they’re building a park. Even that could add to the scenery and increase the total rent. It’s fair, but it’s a concern for renters."

According to Montgomery County officials, the county needs to build 31,000 housing units by 2030. Newly built units are also exempt for 23 years, along with property owners who rent two or fewer units.