Montgomery County officials announced this week that the rent stabilization increase allowance in 2025 will be 5.7 percent, down from 6 percent in 2024.
The new rate will be effective on July 1.
Under the county’s Rent Stabilization Law, the allowable rent increase for regulated units is adjusted annually based on the Consumer Price Index (CPI-U) for the Washington-Arlington-Alexandria area, plus either 3 or 6 percent, whichever is lower.
The CPI-U applicable for 2025 is reported to be 2.7 percent.
Unless exempt, all licensed residential rental units in Montgomery County constructed in 2002 or earlier are subject to the Rent Stabilization Law, which was enacted in 2023 and became effective in 2024.
“Montgomery County’s Rent Stabilization law is part of our broader effort to protect tenants and provide more predictability in an increasingly expensive housing market,” County Executive Marc Elrich said in a press release. “While this year’s rent increase allowance is lower than last year’s, I continue to urge landlords to consider limiting increases to the Voluntary Rent Guideline of 3.3%. We know that many renters are struggling, and it’s important to balance the needs of property owners with the economic realities facing our residents. We remain committed to creating a more affordable and stable housing environment for everyone who calls Montgomery County home.”
In addition to the rent increase allowance, the Rent Stabilization law also permits annual increases for certain fees based on the CPI-U, including rental application fees, pet fees, lost key fees, lockout fees, internet or cable television fees, and parking fees.
Rental application fees will be capped at a maximum of $25 or the actual cost of credit checks and other screening expenses. The maximum refundable pet deposit will be $308.10, and a monthly fee of up to $25.67 per pet.
Lost key fees will be limited to the actual costs incurred by the landlord plus an additional $25. Lockout fees will be capped at $25.67 for in-house locksmith services or will reflect the actual charge if a third-party locksmith is utilized.
Internet or cable television fees will be determined based on the landlord’s actual costs divided by the number of rental units participating.
Increases in parking fees will be limited to a maximum of 2.7 percent based on the current rate.
Montgomery County law mandates that the landlord provide the tenant with written notice of any rent or fee increase at least 90 days before the effective date of the increase.
More information on Rent Stabilization and related laws is available online at montgomerycountymd.gov.
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