Montgomery County’s rent stabilization allowance for 2025 will be set at 5.7%, effective July 1, marking a slight decrease from last year’s 6% cap, according to a press release.
Under the county’s Rent Stabilization law, the annual rent increase for regulated units is based on the Consumer Price Index for Urban Consumers (CPI-U) plus 3%, or 6%, whichever is lower.
For 2025, the CPI-U rate is 2.7%.
The Rent Stabilization law, enacted in 2023 and effective since July 2024, applies to all county-licensed rental units built in 2002 or earlier unless exempt.
It also permits annual fee increases based on the CPI-U, affecting application fees, pet fees, key replacements, lockouts, parking, and other services.
| Type of Fee | Maximum Fee |
| Application Fee | $25 or the actual cost of credit check and other screening cost. |
| Pet Fee | $25 or the actual cost of credit check and other screening cost. |
| Lost Key Fee | The actual cost to the landlord, plus $25. |
| Lock Out Fee | The actual cost to the landlord is divided by the number of rental units voluntarily opting in. |
| 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. |
Landlords must provide tenants with written notice of any rent or fee increase at least 90 days in advance.
While the county sets a maximum rent increase for regulated units, officials encourage landlords to follow the Voluntary Rent Guideline (VRG), which is set at 3.3% since March 1.
The VRG is mandatory for Moderately Priced Dwelling Units (MPDU) and other regulated housing agreements.
Montgomery County Executive Marc Elrich urged landlords to consider the financial hardships many tenants face
“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%,” Elrich said in the press release. “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.”
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.
