Press Releases
Montgomery County Sets Annual Rent Stabilization Increase Allowance at 5.7 Percent
For Immediate Release: Tuesday, March 25, 2025
Montgomery County’s 2025 rent stabilization rent increase allowance will be 5.7%, effective July 1. It is a decrease from 2024’s rent increase allowance, which was 6%.
Under Montgomery County’s Rent Stabilization law, the rent increase allowance for regulated units is adjusted annually based on the Consumer Price Index prices for the Washington-Arlington-Alexandria Area (CPI-U) plus 3% or 6%, whichever is lower. The applicable rate for 2025 CPI-U is 2.7%.
Unless exempted, all County-licensed residential rental units constructed in 2002 and before are subject to the Rental Stabilization law. The Rent Stabilization law was enacted on July 20, 2023, and became effective on July 23, 2024.
Rent Stabilization law also allows annual increases for certain fees based on the CPI-U. The increase for those fees is shown below. The 2025 allowed fee amounts will be effective July 1.
|
Type of Fee |
Maximum Fee |
|
Application Fee |
$25 or the actual cost of credit check and other screening cost. |
|
Pet Fee |
Up to $308.10 refundable pet deposit. Up to $25.67/pet/month. |
|
Lost Key Fee |
The actual cost to the landlord, plus $25. |
|
Lock Out Fee |
$25.67 per lock out for an in-house locksmith or the actual charge when a third-party locksmith is used. |
|
Internet or Cable Television |
The actual cost to the landlord is divided by the number of rental units voluntarily opting in. |
|
Motor Vehicle/Motorcycle Parking Fee |
An increase of 2.7% from the current fee. |
County law requires that a notice of rent or fee increase must be in writing and delivered by the landlord to a tenant at least 90 days before the effective date of the rent increase. The notice requirement applies to all County-licensed residential rentals, including rental units in multifamily buildings, houses, townhouses, individual condominium units and accessory dwelling units.
While Montgomery County has an established increase allowance for units regulated under the Rent Stabilization law, landlords are strongly encouraged to limit rent increases to the Voluntary Rent Guideline (VRG). Effective March 1, the 2025 VRG is 3.3%. The VRG is mandatory for rental units regulated under the Moderately Priced Dwelling Unit (MPDU) program and other regulatory agreements.
“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,” said County Executive Marc Elrich. “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.”
For questions or observations regarding rent increases, please visit the Rent Stabilization Information and VRG webpages. To access and learn more about the Rental Housing Portal, visit the Rental Housing Portal Information webpage.
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Media Contact: Joe Dominguez 240-743-8865
Categories: Housing