Montgomery County MD rent increase 2026 HOME Act (Bill 15-23, Mont. Co. Code §29-53): VRGA cap 5.8% for FY 2026 (July 1, 2025 – June 30, 2026). Formula: lower of DC MSA CPI-U + 3% or 6%. 23-year rolling new-construction exemption — longest in the U.S. 90-day advance notice under §29-53(d). OLTA enforcement; $1,000 civil penalty per violation. NIH Bethesda, NOAA Rockville, FDA White Oak/Silver Spring federal agency worker rental market.

FY 2026 VRGA formula — how 5.8% is derived

The HOME Act formula under §29-53(a) calculates the VRGA each fiscal year as the lower of:

1. The percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the Washington-Arlington-Alexandria DC-VA-MD-WV Metropolitan Statistical Area, for the 12 months ending the prior December, plus 3 percentage points; or
2. A hard ceiling of 6%.

For FY 2026 (July 1, 2025 – June 30, 2026): the DC MSA CPI-U change for the 12 months ending December 2025 was approximately 2.8%. Applying the formula: 2.8% + 3.0% = 5.8% (below the 6% ceiling). Result: VRGA for FY 2026 = 5.8%.

VRGA history under the HOME Act:

• FY 2025 (July 2024 – June 2025): 6.0% — the ceiling was hit because the DC MSA CPI-U change plus 3 points exceeded 6%.
• FY 2026 (July 2025 – June 2026): 5.8% — below the ceiling as inflation moderated.

The VRGA is the maximum allowable rent increase percentage for any covered unit during the fiscal year in which the increase takes effect. The fiscal year runs July 1 – June 30. An increase that takes effect on August 1, 2025 (during FY 2026) is governed by the 5.8% FY 2026 VRGA. An increase that takes effect on July 1, 2025 (the first day of FY 2026) is also governed by 5.8%. A notice served during FY 2025 with an effective date in FY 2026 is governed by the FY 2026 VRGA rate, not FY 2025.

Key distinction from DC: DC’s Rent Control Year runs May 1 – April 30, while Montgomery County’s fiscal year runs July 1 – June 30. The two neighboring jurisdictions use different calendar anchors. A landlord with units in both DC and Montgomery County must track both fiscal-year cutoffs and apply the correct cap rate based on the effective date of each increase.

Coverage under the HOME Act — the four-exception framework

The HOME Act covers all residential rental units in Montgomery County unless a specific exemption applies. The four primary exemptions:

Exception 1 — 23-year new-construction exemption (§29-53(b)(1))

The HOME Act’s most significant exemption is the 23-year rolling new-construction window: any unit in a building whose first certificate of occupancy was issued within the preceding 23 years is exempt. Calculated for FY 2026: 2026 − 23 = 2003. Any building whose first CoC was issued after 2003 (i.e., 2004 or later) is exempt from the FY 2026 VRGA.

This 23-year exemption window is the longest new-construction exemption of any U.S. rent-control regime covered by RentCeiling:

• Oregon SB 611 (ORS §90.323(2)(a)): 15-year first-CoC exemption.
• California AB 1482 (Cal. Civ. Code §1947.12(d)(1)): 15-year first-CoC exemption.
• Washington HB 1217 (RCW §59.18.700(2)(d)): 12-year first-CoC exemption.
• DC Rental Housing Act: Pre-1975 coverage threshold — all post-1975 buildings are permanently exempt, not on a rolling basis.
• Montgomery County HOME Act (§29-53(b)(1)): 23-year rolling exemption — the longest in the U.S. among major rent-control regimes.

The 23-year rolling calculation means the covered stock changes every year: a building that was exempt in FY 2025 because its CoC was issued in 2003 (2025 − 23 = 2002; 2003 > 2002, so exempt in FY 2025) becomes covered in FY 2026 (2026 − 23 = 2003; a building with first CoC exactly in 2003 is on the boundary — covered if ≤2003, exempt if ≥2004). Landlords must recalculate the exemption status of each building annually.

Practical impact for Montgomery County’s housing market: large portions of Silver Spring, Rockville, Gaithersburg, and Germantown that were developed in the 2000s boom period are transitioning from exempt to covered as their CoC dates fall outside the 23-year window. A landlord in a 2001-vintage apartment complex in Silver Spring near the Beltway became covered in FY 2024 (2024 − 23 = 2001) for the first time. This rolling coverage expansion is the most important annual compliance event for Montgomery County landlords managing mid-2000s or earlier properties.

Exception 2 — Subsidized housing (§29-53(b)(2))

Federally or county-subsidized housing is exempt: Housing Choice Vouchers (Section 8 project-based), LIHTC developments, Moderately Priced Dwelling Units (MPDUs) with rent restrictions under the Montgomery County MPDU program, and other subsidized programs. The exemption is unit-specific: a building with market-rate units and MPDU-restricted units may have some covered (market-rate) and some exempt (MPDU) units.

Exception 3 — Owner-occupied accessory dwelling units (§29-53(b)(3))

An ADU that is attached to or on the same lot as the owner’s primary residence and is rented to a non-family-member tenant is exempt from the VRGA. This small-owner-occupant ADU exemption reflects the legislature’s intent to avoid burdening individual homeowners who rent a basement or above-garage unit. Important: the exemption requires the owner to occupy the primary residence on the same property. A landlord who moves out and rents both the primary house and the ADU loses the ADU exemption.

Exception 4 — Short-term rentals (§29-53(b)(4))

Rentals of less than 30 consecutive days are not covered. This exemption covers Airbnb-type short-term rentals and hotel-equivalent accommodations. A landlord who operates a unit as a short-term rental but pivots to long-term tenancy should verify that the transition to a 30+-day tenancy brings the unit under HOME Act coverage.

90-day advance notice — the longest notice requirement

Montgomery County Code §29-53(d) requires that landlords give tenants at least 90 days’ advance written notice before a rent increase takes effect. This 90-day requirement is among the longest in the United States for standard residential rent increases:

• California AB 1482: 30-day notice for increases ≤10% (Cal. Civ. Code §827(b)); 90-day for increases >10% (a moot scenario under the cap).
• Oregon SB 611: 90 days (ORS §90.323(3)) — same as Montgomery County.
• Washington HB 1217: 180 days (RCW §59.18.140) — twice Montgomery County’s requirement.
• DC Rental Housing Act: 60 days via RAD Form 8 (D.C. Official Code §42-3502.08(b)(2)(B)).
• Saint Paul Chapter 193A: 30 days (Minn. Stat. §504B.135(a)).

Notice service mechanics: Maryland Residential Property Article §8-208 sets service requirements for residential rent notices in Maryland. Written notice may be served by personal delivery to the tenant or by first-class mail to the rental unit address. For mailed notice, Maryland practice applies a mail-add presumption (typically 3-5 days) for the receipt date, extending the effective 90-day window slightly beyond the physical mailing date. Landlords who are unsure whether mailed notice reaches a tenant should use certified mail with return receipt requested to establish a confirmed delivery date.

Effective-date planning for FY 2026: The FY 2026 VRGA (5.8%) applies to increases effective July 1, 2025 through June 30, 2026. For a landlord who wants to implement a 5.8% increase effective October 1, 2025 (a common lease-renewal date in Montgomery County): the notice must have been served no later than July 3, 2025 (90 days before October 1). For a January 1, 2026 effective date: notice due no later than October 3, 2025.

For FY 2027 (July 2026 – June 2027): the VRGA will be published before July 1, 2026. Landlords planning increases effective August 1, 2026 (first opportunity in FY 2027) must serve notice by May 3, 2026. The notice must use the FY 2027 VRGA rate, which will not be published until shortly before the fiscal year begins. Landlords who serve notice before the FY 2027 rate is published should use a conservative estimate or wait for the official rate announcement.

OLTA enforcement — Office of Landlord-Tenant Affairs

The Montgomery County Office of Landlord-Tenant Affairs (OLTA) is the primary administrative enforcement agency for the HOME Act. OLTA is housed within the Montgomery County Department of Housing and Community Affairs (DHCA). OLTA’s enforcement process:

1. Complaint intake: A tenant who receives a rent increase above the 5.8% VRGA (or any increase without the required 90-day notice) files a written complaint with OLTA. OLTA accepts complaints by mail, in person, or online at the DHCA website. Complaints can be filed without legal representation — OLTA is designed to be accessible to unrepresented tenants.
2. Investigation: OLTA investigates the complaint, which may include requesting documentation from the landlord (lease, prior rent history, notice of increase, building CoC date).
3. Mediation: OLTA first attempts mediation between the landlord and tenant. Many disputes are resolved at mediation through agreed-upon rent reductions or repayment of overcharges without formal hearings. OLTA’s mediation rate is high relative to comparable agencies in other jurisdictions.
4. Formal hearing: If mediation fails, OLTA schedules a formal hearing. The landlord and tenant present their cases; OLTA issues a written determination. The determination can order: rent reduction to the lawful VRGA ceiling, repayment of overcharged rent, civil penalties under §29-59.
5. Civil penalties under §29-59: Up to $1,000 per violation. Each unit and each separate act of non-compliance is a separate violation. A landlord who serves unlawful increases on 10 units faces up to $10,000 in civil penalties.
6. Appeals: OLTA determinations can be appealed to the Montgomery County Circuit Court.

OLTA’s accessibility to non-lawyer tenants makes Montgomery County enforcement more active per-unit than in jurisdictions where enforcement requires court filing. Landlords with Montgomery County portfolios who receive OLTA notices of complaint should respond promptly with documentation, because non-response escalates to formal hearing faster in OLTA’s process than in some comparable administrative agencies.

§29-58 — unenforceability of waiver provisions

Montgomery County Code §29-58 voids any lease clause or agreement that purports to waive a tenant’s rights under the HOME Act. A lease provision stating that the tenant waives the right to challenge a rent increase above the VRGA, or that the parties agree rent increases will not be subject to §29-53, is void and unenforceable. Landlords who include VRGA waiver language in their leases (whether intentionally or as carryover from older lease templates) face the same OLTA enforcement exposure as landlords who serve unlawful increases without any lease language. The unenforceability provision also means that a tenant who signed a lease with a waiver clause can still file an OLTA complaint challenging a subsequent above-VRGA increase.

Lease template audits are important for Montgomery County landlords. Lease forms obtained from national landlord associations or property management software that were drafted before the HOME Act’s July 2024 effective date may contain provisions that are now void under §29-58. Using a non-compliant lease template does not insulate a landlord from VRGA enforcement — it compounds the compliance exposure.

Banking — not available in Montgomery County

Unlike DC’s Rental Housing Act (which permits banking of unused annual increases under §42-3502.08(g)(2)), Montgomery County’s HOME Act does not provide a banking mechanism. A landlord who does not take a VRGA increase in FY 2025 cannot carry forward the unused percentage to FY 2026. Each fiscal year’s VRGA opportunity either is used during that fiscal year or is lost permanently.

Practical consequence: a Montgomery County landlord who last increased rent in 2023 (using a 6% FY 2025-era increase) and then skipped FY 2025 cannot apply a “banked 6% from FY 2025” increase in FY 2026. Only the current FY 2026 VRGA of 5.8% is available. This no-banking policy makes the 12-month frequency rule under §29-53(c) a straightforward compliance check — the landlord looks at whether 12 months have passed since the last increase, and if so, the current fiscal year’s VRGA is the maximum available.

The Montgomery County rental market — federal agencies, biotech, and suburban demographics

Montgomery County’s rental market is unlike any other U.S. jurisdiction covered by RentCeiling because of its extraordinary concentration of federal government agencies, research institutions, and large biotech and technology employers. Understanding the tenant demographics by municipality is essential for landlords assessing compliance exposure.

Bethesda — NIH and the healthcare/research cluster

Bethesda is home to the National Institutes of Health (NIH), the world’s largest biomedical research institution, employing over 20,000 staff and hosting thousands more visiting scientists, fellows, and contractors annually. The NIH campus on Wisconsin Avenue in Bethesda is surrounded by residential neighborhoods where NIH employees and postdoctoral researchers rent heavily. NIH offers a high density of graduate-degree holders (Ph.D.s, M.D.s) who are typically sophisticated about their legal rights and are more likely to file OLTA complaints than the general population.

Bethesda also hosts the Walter Reed National Military Medical Center (WRNMMC) on Wisconsin Avenue, created by the 2011 Base Realignment and Closure (BRAC) merger of Walter Reed Army Medical Center (DC) and the National Naval Medical Center (Bethesda). WRNMMC employs approximately 10,000 military and civilian staff, with many active-duty personnel and their families renting in Bethesda and adjacent communities. Military tenants at WRNMMC are covered by HOME Act protections for their off-base Montgomery County rentals, and additionally by SCRA §3955 (50 U.S.C. §3955) for qualifying PCS order lease terminations. SCRA and the HOME Act operate on separate tracks.

The Bethesda housing market tends toward higher rents (typical 1BR $2,000-$2,800/month), meaning the dollar amount of a 5.8% increase is significant: 5.8% of $2,400/month = $139.20/month = $1,670.40/year maximum increase. Enforcement precision matters at this price point because the absolute overcharge exposure per unit is high.

Rockville — NOAA, FDA headquarters area, and the biotech corridor

Rockville is the county seat and a major employment center. NOAA (National Oceanic and Atmospheric Administration) has its headquarters campus in Rockville (the NOAA Center for Weather and Climate Prediction near the White Flint Metro), employing thousands of scientists, engineers, and support staff who rent throughout Rockville and adjacent White Flint and North Bethesda areas. The Route 270 biotech corridor north of Rockville is one of the densest biotech clusters in the United States, with companies including Human Genome Sciences (now GlaxoSmithKline Rockville site), MedImmune/AstraZeneca, and numerous NIH-spinoff startups. Biotech employees tend toward high salaries and corresponding higher-end rental preferences.

Montgomery College (Rockville campus, 14,000+ students) generates student rental demand in Rockville neighborhoods. Community college students tend to be cost-sensitive renters in lower-price covered stock, making Rockville’s older apartment corridors (pre-2003 CoC, now fully covered under the rolling 23-year exemption) particularly relevant for HOME Act compliance.

Silver Spring — FDA White Oak, media companies, transit-oriented density

Silver Spring is Montgomery County’s most densely rented municipality, served by the Silver Spring Metro station (Red Line) and several bus rapid transit corridors. The FDA’s White Oak campus (technically in the White Oak CDP area between Silver Spring and Burtonsville) is a major employer: the FDA White Oak campus employs approximately 10,000 scientific, medical, regulatory, and administrative staff following the BRAC consolidation of FDA headquarters from Rockville and DC locations. FDA employees rent heavily in Silver Spring (convenient to White Oak by MD 29 or Colesville Road), Burtonsville, and Calverton.

Discovery Communications (now Warner Bros. Discovery) maintains a major facility in Silver Spring. University of Maryland College Park (just across the Prince George’s County line) generates significant student and faculty rental demand in southern Silver Spring and the Takoma Park area. Note: Takoma Park is an independent municipality within Montgomery County that has its own long-standing rent control ordinance (Takoma Park City Code Chapter 6.20), which operates alongside and sometimes in addition to the county HOME Act — landlords in Takoma Park should verify the applicable rules for both the city and county frameworks.

Gaithersburg and Germantown — NIST and the suburban mid-market

NIST (National Institute of Standards and Technology) operates its main campus in Gaithersburg, employing approximately 3,000 federal scientists and technical staff plus contractors. NIST employees rent in Gaithersburg, Germantown, and along the I-270 corridor. The Gaithersburg and Germantown rental market has more affordable median rents than Bethesda or Rockville (typical 1BR $1,400-$1,800/month), but the 5.8% VRGA cap applies equally.

Gaithersburg and Germantown also contain significant MPDU (Moderately Priced Dwelling Unit) stock — units in developments built under Montgomery County’s inclusionary zoning program. MPDU units are exempt from the VRGA because their rents are separately regulated under the MPDU program. Landlords managing mixed MPDU/market-rate buildings must track which units are subject to VRGA (market-rate) and which are regulated under MPDU rules.

Montgomery County vs. DC vs. Virginia — three-regime DC metro compliance

Landlords with portfolios spanning the DC metropolitan area face three distinct regulatory regimes depending on which side of the jurisdiction boundary their properties fall:

Feature	Washington DC	Montgomery County MD	Virginia (NoVA)
2026 cap	4.1% (RY 2026, standard)	5.8% (FY 2026 VRGA)	No cap (preempted by VA Code §55.1-1311)
Fiscal year	May 1 – Apr 30 (RY)	Jul 1 – Jun 30 (FY)	N/A
Formula	CPI-W + 2%, max 10%	CPI-U + 3%, max 6%	N/A
Coverage trigger	Pre-1976 CoC + 5+ DC units	All except 23-yr exempt + exceptions	N/A
New construction exempt	Post-1975 (permanent)	Within last 23 years (rolling)	N/A
Advance notice	60 days (RAD Form 8)	90 days	30 days (VA Code §55.1-1204)
Banking	Yes (§42-3502.08(g)(2))	No	N/A
Enforcement agency	RAD / DC Superior Court	OLTA / MC Circuit Court	Landlord-tenant court only
Penalty	Treble damages + attorney fees	$1,000/violation	No penalty (no cap)

The three-regime complexity is most acute for property management companies operating across DC, Montgomery County, and Northern Virginia (Fairfax, Arlington, Alexandria). Lease templates, notice calendars, and rent-increase calculation workflows must all be jurisdiction-specific. A single unified lease template or a single notice schedule for “DC metro area” is non-compliant in at least two of the three jurisdictions.

Note: Prince George’s County MD (adjacent to Montgomery County, home to many federal employees from Andrews AFB/Joint Base Andrews, the University of Maryland, and federal agencies along the Beltway) has no rent control as of 2026. There has been ongoing debate in the Maryland legislature about statewide rent stabilization, but no statewide cap was enacted as of June 2026.

Penalty analysis — dollar examples for FY 2026

Montgomery County’s $1,000/violation civil penalty under §29-59 is lower in absolute terms than DC’s treble-damages framework, but the OLTA complaint process is more accessible to non-lawyer tenants, which means complaints are more frequent per unit than in DC.

Current rent	5.8% max increase	New rent (max)	Annual increase
$1,400/mo	$81.20/mo	$1,481.20/mo	$974.40
$1,700/mo	$98.60/mo	$1,798.60/mo	$1,183.20
$2,000/mo	$116.00/mo	$2,116.00/mo	$1,392.00
$2,400/mo	$139.20/mo	$2,539.20/mo	$1,670.40
$2,800/mo	$162.40/mo	$2,962.40/mo	$1,948.80
$3,200/mo	$185.60/mo	$3,385.60/mo	$2,227.20

A 30-unit Bethesda building where the landlord charged 7.5% instead of the 5.8% VRGA for 12 months: overcharge per unit = 1.7% × $2,400/month × 12 months = $489.60/unit × 30 units = $14,688 total overcharge. Add $1,000/unit civil penalty (assuming OLTA finds violation on each unit): $30,000 civil penalty. Total exposure: $44,688 before any legal fees. For a single Silver Spring condo rented at $1,700/month charged 7% instead of 5.8%: 1.2% × $1,700 × 12 = $244.80 overcharge + up to $1,000 civil penalty = $1,244.80.

8-step compliance checklist for Montgomery County FY 2026

1. Confirm coverage by verifying CoC date. Look up the building’s first certificate of occupancy date in the Montgomery County permit records or property tax records (SDAT). Calculate: 2026 − 23 = 2003. If first CoC was issued after 2003 (2004 or later), the unit is currently exempt from the VRGA. If 2003 or earlier: covered.
2. Confirm the unit is not subject to another exemption. Check: Is the unit in a subsidized program (MPDU, Section 8 project-based, LIHTC)? Is it an owner-occupied ADU? Is it a short-term rental? If any of these apply: exempt from the VRGA.
3. Identify the applicable FY. Determine the planned effective date of the increase. If effective date falls July 1, 2025 – June 30, 2026: apply FY 2026 VRGA = 5.8%. If July 1, 2026 or later: apply the FY 2027 VRGA (to be published before July 1, 2026).
4. Check the 12-month frequency rule (§29-53(c)). The new increase cannot take effect less than 12 months after the prior increase effective date for this unit. Review the tenant’s lease history and prior increase records.
5. Compute the new rent. Multiply current rent by 1.058 (5.8%). Do not round up past the cent in a way that produces a percentage above 5.8%. Example: $1,700/month × 1.058 = $1,798.60/month (maximum).
6. Calculate the 90-day notice date. Identify the desired effective date. Count back 90 days to determine the latest service date for the notice. Add 3-5 days if mailing (mail-add presumption). Serve the notice on or before the calculated date. Example: effective date October 1, 2025 → notice must be served no later than July 3, 2025 (90 days prior); if mailing, serve by June 28, 2025 (to allow 5 days mail time).
7. Prepare and serve the written notice. Content: current rent, new rent, dollar increase, percentage (5.8%), effective date, §29-53 citation, VRGA FY 2026 citation. Retain proof of service. Use the RentCeiling Montgomery County calculator and notice generator to produce a compliant notice with the correct cap and notice math.
8. Audit lease templates for §29-58 compliance. Remove any waiver-of-VRGA-rights provision from your standard lease. Such provisions are void under §29-58 and may trigger OLTA scrutiny of your entire portfolio if discovered during a complaint investigation.

How RentCeiling handles Montgomery County compliance

The free Montgomery County rent calculator takes your unit’s first CoC date, current rent, last increase date, and planned effective date, and returns: the FY 2026 VRGA coverage determination, the 5.8% lawful maximum, the 12-month frequency check, the 90-day notice service deadline, and a printable notice meeting §29-53(d)’s requirements.

Compare Montgomery County’s 5.8% FY 2026 VRGA against all nine other RentCeiling jurisdictions at the comparison hub: DC’s 4.1% RY 2026 (lower), Saint Paul’s flat 3.0% (lowest), Oregon’s 9.5% (higher), Washington State’s 9.683% (highest). The DC rent control 2026 deep-dive explains the adjacent DC regime and the RY vs. FY calendar difference. Open rule-set at /rules/index.json.

For context on how the 23-year rolling exemption compares to other new-construction exemption windows, see Washington HB 1217 four-city comparison (12-year exemption) and the Oregon SB 611 2026 deep-dive (15-year exemption).

Run the Montgomery County 2026 calculator (free)

Common questions about Montgomery County rent control 2026