CPI-U for the Washington-Arlington-Alexandria area + 3%, or a flat 6%, whichever is lower. Unused allowance is banked per unit, but any single increase (allowance + banked) may not exceed 10% of current rent.
Law: Rent Stabilization, County Code ch. 29 (§§ 29-57, 29-58).
§ 2 · Coverage
Who it covers, and who's exempt
Covered
Rent-stabilized units in the County; units in some municipalities (e.g. Takoma Park) follow local rules
Main exemptions & conditions
Newly constructed units offered for rent for less than 23 years
Units owned by a natural person (or a decedent's trust or estate) who owns 2 or fewer rental units in the County
Units under a regulatory agreement (e.g. MPDU)
Units substantially renovated within 23 years
Certain nonprofit and licensed care facilities
§ 3 · Timing
Notice, and when it changes next
Notice: A written 90-day notice is required, delivered by US mail or in person with a signed receipt. Increases only once every 12 months and only at lease renewal or a new lease.
Next change: DHCA sets the next allowance for July 1, 2027 – June 30, 2028.
“a newly constructed unit that has been offered for rent for less than 23 years”
Last checked October 17, 2026 · montgomerycountymd.gov
See something out of date? The methodology page explains how we check figures.
§ 5 · Questions
Frequently asked
What is the maximum rent increase in Montgomery County for July 2026 – June 2027?
The maximum rent increase for rent-stabilized units in Montgomery County, Maryland is 5.2% from July 1, 2026 to June 30, 2027.
How is the Montgomery County rent cap calculated?
CPI-U for the Washington-Arlington-Alexandria area + 3%, or a flat 6%, whichever is lower. Unused allowance is banked per unit, but any single increase (allowance + banked) may not exceed 10% of current rent.
Which rentals are exempt from the Montgomery County cap?
Newly constructed units offered for rent for less than 23 years. Units owned by a natural person (or a decedent's trust or estate) who owns 2 or fewer rental units in the County. Units under a regulatory agreement (e.g. MPDU).
When does the Montgomery County rent cap change next?
DHCA sets the next allowance for July 1, 2027 – June 30, 2028.
Where does this Montgomery County figure come from?
From Montgomery County DHCA: “Rent Stabilization Increases and Limitations”, which we last checked on October 17, 2026. Always confirm with the agency before relying on it.