Maryland is a clear example of how rental rules can stack in layers. There is no statewide rent cap, but there is a statewide floor of tenant protections, and then individual counties and cities add their own rules on top. For a property manager operating across the state, the mistake that causes the most trouble is assuming the rules are uniform. They aren't: what's legal in one jurisdiction can be a violation a few miles away.

The two jurisdictions that draw the most confusion are Montgomery County and Baltimore City, and they're confusing for opposite reasons. Montgomery County has a genuine rent-stabilization law that caps annual increases with a CPI-based formula. Baltimore City, despite frequently appearing in "rent stabilization" searches, does not currently impose a Montgomery-style rent cap; it regulates rent through a different set of tools. Treating the two as the same, or assuming either mirrors the state, is where managers get into trouble.

This guide untangles the three layers: the Maryland statewide baseline (including the Renters' Rights and Stabilization Act of 2024), Montgomery County's actual rent-stabilization cap, and Baltimore City's distinct approach. The goal is a clear picture of which rule applies where, so a manager can price a renewal correctly and avoid the rollback-and-restitution exposure that comes with getting the cap wrong.

Quick answer: Maryland has no statewide rent cap, but the state Renters' Rights and Stabilization Act of 2024 (RRSA) sets baseline protections statewide (including a security-deposit limit of generally one month's rent and an expanded tenant right of first refusal), and local jurisdictions add their own rules. Montgomery County caps annual rent increases at the lesser of local CPI-U plus 3% or 6%, on County-licensed units at least 23 years old, administered by the Office of Rent Stabilization. Baltimore City does not currently impose a comparable rent cap; instead it regulates through mechanisms like a rental-license requirement, a bar on certain rent increases when a tenant complaint results in a qualifying serious-defect violation notice, and state-law notice rules. Statewide, rent-increase notice is tiered by tenancy: at least 90 days for a tenancy longer than one month, and 60 days for a tenancy longer than one week but not more than one month; a typical month-to-month tenancy generally falls under the 90-day category, and local law can require more. Rates and rules change; verify the current figure with the jurisdiction before setting a renewal.

Key takeaways

• Maryland has no statewide rent cap, but the RRSA of 2024 sets statewide baseline protections that apply everywhere, including Montgomery County and Baltimore City.

• Montgomery County has a real rent-stabilization cap: the lesser of CPI-U (Washington-Arlington-Alexandria) plus 3% or a flat 6%, on County-licensed units at least 23 years old.

• The Montgomery cap rate resets annually and is published by the Office of Rent Stabilization; confirm the current rate before applying an increase.

• Baltimore City does not currently impose a Montgomery-style CPI rent cap; it uses different tools (rental licensing, a serious-defect code bar on certain increases, notice rules).

• Statewide, rent-increase notice is tiered: at least 90 days for a tenancy longer than one month and 60 days for a tenancy longer than one week but not more than one month; a typical month-to-month tenancy generally falls under the 90-day category, and local law (like Montgomery County) can require more.

• Because rules differ sharply by jurisdiction and the cap rate changes yearly, always confirm the current local rule before pricing a renewal.

Layer 1: The Maryland statewide baseline

Short answer: Maryland sets no statewide rent cap, but the RRSA of 2024 established a floor of tenant protections that applies everywhere in the state.

Maryland deliberately leaves rent caps to local jurisdictions, but it does set statewide rules that every landlord and manager must follow, and it strengthened them significantly with the Renters' Rights and Stabilization Act of 2024 (House Bill 693, signed April 2024, with provisions phasing in through 2024-2025). The RRSA didn't create a statewide rent cap, and it did not create rent control in Baltimore, but it changed the baseline in ways that matter across the state:

• Security deposits generally capped at one month's rent. For leases signed on or after October 1, 2024, the maximum security deposit is generally one month's rent (reduced from two months). A narrow exception permits up to two months' rent only if all three statutory conditions are met: the tenant qualifies for utility assistance through the Department of Human Services, the lease requires the tenant to pay utilities directly to the landlord, and the parties agree in writing to the amount. Deposits may be used only to compensate for actual damages, not retained as liquidated damages.

• Expanded tenant right of first refusal. A right of first refusal to purchase, previously a Baltimore City feature, was expanded statewide to residential rental properties with fewer than four units (with exceptions, including transfers to family members). Managers selling a covered single-family or small rental must handle the required notice before listing or closing.

• Tenant Bill of Rights at lease signing. Landlords must provide tenants a copy of the Maryland Tenant Bill of Rights (published by the state Office of Tenant and Landlord Affairs) at lease execution.

• Higher eviction filing surcharges. The cost to file a failure-to-pay-rent complaint rose substantially (from $8 to $43 per case, with an additional surcharge in Baltimore City), and a landlord generally can't pass that cost to a tenant except under specific conditions.

Separately, Maryland's baseline rent-increase notice rule under Real Property § 8-209 is tiered by tenancy: at least 90 days' written notice for a tenancy longer than one month, and 60 days' written notice for a tenancy longer than one week but not more than one month. A typical month-to-month tenancy generally falls under the 90-day category, and local law may require more. This is a floor, not a ceiling: it applies on top of any local rule. 

Layer 2: Montgomery County's rent-stabilization cap

Short answer: Montgomery County caps annual rent increases at the lesser of local CPI-U plus 3% or 6%, on County-licensed units at least 23 years old.

Montgomery County has the most robust local rent regulation in the state. Enacted as Bill 15-23 (codified in Montgomery County Code Chapter 29) and effective July 23, 2024, with implementation under Executive Regulation 2-24, the county's Rent Stabilization law caps how much rent on a covered unit can rise each year.

The cap formula. The annual increase is limited to the lesser of the local CPI-U (Washington-Arlington-Alexandria area) plus 3%, or a flat 6%. Because it's tied to CPI, the number changes every year. The Office of Rent Stabilization (ORS), within the Department of Housing and Community Affairs (DHCA), publishes the allowable rate, which runs from July 1 through June 30. The rate changes annually and is set by the County's published July 1-June 30 period, so managers must use the current published rate and never carry forward a prior year's number. For increases effective from July 1, 2026 through June 30, 2027, the County's published maximum regulated increase is 5.2%.

What's covered. The cap applies to all County-licensed residential rental units that are at least 23 years old, unless specifically exempt. Age is measured on a rolling basis: a building becomes rent-stabilized on January 1 of the 23rd year after its construction year, so newer buildings phase in over time. This "rolling 23-year exemption" means the set of covered properties grows each year.

Key operating rules. Rent on a regulated unit may be increased only once every 12 months, and only at lease renewal or a new lease; mid-lease increases on a multi-year lease aren't allowed. The county permits banking of unused increases (carrying forward an unused portion for later), but a single year's total increase, base plus banked, is subject to an overall ceiling (currently 10%). Landlords may petition for capital-improvement surcharges or fair-return relief. Properties on the county's Troubled or At-Risk Properties list may be barred from increasing rent until the designation is cleared.

Where it doesn't apply. Several incorporated municipalities within the county (including Gaithersburg, Rockville, and Takoma Park, among others) are not covered by the county law and have their own rules, so confirm the municipality before applying the county cap.

Enforcement. ORS administers the program, and tenant complaints are adjudicated by the Office of Landlord-Tenant Affairs (OLTA). Getting a renewal increase wrong can lead to rollbacks and tenant restitution, which is why the cap math and the once-a-year timing have to be right.

Layer 3: Baltimore City's different approach

Short answer: Baltimore City does not currently impose a Montgomery-style rent cap; it regulates rent through licensing, code-compliance, and notice rules instead.

This is the point most likely to trip up a manager, and the one where search results are most misleading. Despite appearing constantly in "Baltimore rent stabilization" searches, Baltimore City does not currently have a rent-control ordinance that caps annual rent increases the way Montgomery County does. The 2024 state RRSA, which does apply in Baltimore, did not introduce rent control to the city.

What Baltimore City does have is a different set of controls that a manager still has to respect:

• A rental-license requirement. Baltimore City requires a valid rental license for covered rental properties, and under the City's licensing rules an unlicensed property may not lawfully collect or retain rent. This is a hard gate: without a current license, rent collection itself is at risk.

• A code-violation bar on certain increases. Under Baltimore City Code (Housing and Urban Renewal, Article 13, § 8-3), when a tenant complaint results in a violation notice citing a serious defect (a condition posing a serious threat to health or safety, such as a lack of heat or running water, or a structural hazard), the landlord generally may not increase the rent until the defect is corrected and the notice is abated, subject to the statute's conditions and timing. A separate provision (§ 8-2) addresses serious-defect violation notices that don't come from a tenant complaint. In practice, an unresolved serious defect can suspend a landlord's ability to raise rent.

• State-law notice rules. Maryland's tiered rent-increase notice rules apply in Baltimore, with a typical month-to-month tenancy generally falling under the 90-day category.

• The Baltimore-specific eviction surcharge. The RRSA's higher failure-to-pay-rent filing surcharge carries an additional amount in Baltimore City.

• A right-of-first-refusal history. Baltimore City was the original home of the tenant right of first refusal that the RRSA later expanded statewide, so covered sales require careful notice handling.

Separately, Maryland's state retaliation law (Real Property § 8-208.1) can make a rent increase shortly after a protected tenant complaint presumptively retaliatory, which shifts the burden to the landlord to show a legitimate, pre-existing reason.

The practical takeaway: in Baltimore, the primary constraints aren't a percentage cap but compliance, licensing, code condition, and notice. A manager who assumes "no rent cap" means "no rules" can still run into a rent freeze through an unabated serious-defect violation or an inability to collect rent at all without a current license. Because Baltimore has periodically debated rent-stabilization proposals, this is also an area to monitor; confirm the city's current position before relying on the absence of a cap.

How the three layers interact

Short answer: the state floor always applies; the local layer determines whether a rent cap exists and what it is.

The mental model that keeps a manager out of trouble is to read the layers from the bottom up:

1. Start with the state floor. The RRSA baseline, one-month security deposit, right of first refusal, Tenant Bill of Rights, tiered rent-increase notice, applies everywhere in Maryland, including both Montgomery County and Baltimore City.

2. Add the local layer. Then apply the jurisdiction's specific rule: Montgomery County's CPI-based cap, Baltimore City's licensing-and-code approach, or another county's ordinance entirely.

3. Check for a municipal carve-out. Within Montgomery County, confirm the property isn't in an exempt municipality (Gaithersburg, Rockville, Takoma Park, and others) with its own rules.

The single biggest error is applying the wrong layer, assuming a statewide cap that doesn't exist, or assuming Baltimore mirrors Montgomery. The second biggest is using a stale Montgomery cap rate, since it resets every July.

The operational read for property managers

For a property manager with a Maryland portfolio, rent increases are a jurisdiction-by-jurisdiction compliance exercise, not a single policy. The rules genuinely differ, and the cost of getting them wrong, rollbacks, tenant restitution, an unenforceable increase, or an inability to collect rent at all, falls on the manager.

Build the process around the layered structure. For every property, know three things before touching the rent: which jurisdiction (and municipality) it's in, whether a local cap applies (and if so, the current published rate), and when the last increase took effect (for the once-a-year and notice-period rules). In Montgomery County, that means pulling the current ORS-published rate every cycle, confirming the unit's age and coverage, and checking the banking ceiling before applying a carried-forward increase. In Baltimore City, it means confirming the rental license is current and checking whether a qualifying serious-defect violation notice or a recent tenant complaint restricts a rent increase.

Two operational habits carry most of the weight. First, disciplined records and calendaring: knowing each unit's last-increase date, notice dates, and the current cap rate is what keeps a renewal compliant, and a clean rent and payments record is the backbone of proving an increase was lawful if a tenant challenges it. Second, staying ahead of the code-condition rules that can freeze an increase, especially in Baltimore. A consistent maintenance and inspection process helps prevent serious-defect violations from becoming more than a repair problem. Treating each building as an ongoing facility to be maintained to standard can help prevent code conditions from quietly suspending a rent increase.

Common mistakes checklist

• Assuming Maryland has a statewide rent cap (it doesn't; caps are local)

• Assuming Baltimore City has a Montgomery-style rent cap (it currently does not)

• Using last year's Montgomery cap rate instead of the current ORS-published figure

• Applying the Montgomery cap in an exempt municipality (Gaithersburg, Rockville, Takoma Park, and others have their own rules)

• Raising rent more than once in a 12-month period on a Montgomery regulated unit

• Applying a banked increase that pushes the year's total over the county ceiling

• Charging a security deposit above one month's rent without meeting the narrow utility-assistance exception (all three statutory conditions)

• Missing the tiered rent-increase notice period (a typical month-to-month generally falls under the 90-day category; 60 days applies to a term longer than a week but not more than a month; more where local law requires it)

• Raising rent in Baltimore City while a qualifying serious-defect violation notice (from a tenant complaint) remains unabated, or increasing rent after a protected complaint without a legitimate, pre-existing reason

• Collecting rent in Baltimore City without a current rental license

• Overlooking the expanded statewide tenant right of first refusal when selling a covered property

Frequently asked questions

1. Does Maryland have a statewide rent control law?
No. Maryland does not cap rent increases statewide. It sets a floor of tenant protections, strengthened by the Renters' Rights and Stabilization Act of 2024, and leaves rent caps to individual counties and cities. That's why the rules differ sharply between, for example, Montgomery County and Baltimore City.

2. What is the maximum rent increase in Montgomery County?
Montgomery County caps annual rent increases at the lesser of the local CPI-U (Washington-Arlington-Alexandria area) plus 3%, or a flat 6%. Because it's tied to CPI, the exact figure resets each July and is published by the county's Office of Rent Stabilization. For the July 1, 2026-June 30, 2027 period, the published maximum is 5.2%; confirm the current rate for later periods. The cap applies to County-licensed units at least 23 years old, unless exempt.

3. Which Montgomery County properties are covered by rent stabilization?
All County-licensed residential rental units at least 23 years old, unless specifically exempt. Coverage is on a rolling basis: a building becomes rent-stabilized on January 1 of the 23rd year after its construction year, so the pool of covered properties grows over time. Several incorporated municipalities, including Gaithersburg, Rockville, and Takoma Park, are not covered by the county law and have their own rules.

4. Does Baltimore City have rent control?
Not in the sense of a cap on annual rent increases. Baltimore City does not currently impose a Montgomery-style rent-stabilization cap. It regulates rent through other mechanisms, including a rental-license requirement, a bar on certain increases when a tenant complaint results in a qualifying serious-defect violation notice (Baltimore City Code Article 13, § 8-3), and the statewide notice rules. Because rent-stabilization proposals have been debated, confirm the city's current position before relying on the absence of a cap.

5. How much notice is required to raise rent in Maryland?
It depends on the tenancy. Under Real Property § 8-209, a landlord must give at least 90 days' written notice for a tenancy longer than one month, and 60 days' written notice for a tenancy longer than one week but not more than one month. A typical month-to-month tenancy generally falls under the 90-day category. Local law can require more; for example, unincorporated Montgomery County requires 90 days regardless of term. 

6. Did the Renters' Rights and Stabilization Act of 2024 create rent control?
No. The RRSA of 2024 strengthened statewide tenant protections. It reduced the maximum security deposit to one month's rent, expanded the tenant right of first refusal statewide, required the Tenant Bill of Rights at lease signing, and raised eviction filing surcharges, but it did not create a statewide rent cap and did not introduce rent control to Baltimore City.

7. What is the security deposit limit in Maryland now?
For leases signed on or after October 1, 2024, the maximum security deposit is generally one month's rent (reduced from the prior two months). A narrow exception allows up to two months' rent only when all three statutory conditions are met: the tenant qualifies for utility assistance through the Department of Human Services, the lease requires the tenant to pay utilities directly to the landlord, and the parties agree in writing. The deposit may be used only for actual damages, not retained as liquidated damages, and this applies statewide.

8. Can a Montgomery County landlord bank unused rent increases?
Yes. Montgomery County allows landlords to bank unused portions of allowable increases and apply them later, but a single year's total increase, base plus any banked amount, is subject to an overall ceiling (currently 10%). Confirm the current banking rules and ceiling with the Office of Rent Stabilization before applying a carried-forward increase.

This article is for general informational purposes and is not legal advice. Maryland state and local rent rules are layered and change (the Montgomery County cap rate resets annually, and local ordinances can be amended); confirm current requirements with the relevant jurisdiction before setting a rent increase. Key sources include the Montgomery County Office of Rent Stabilization and Montgomery County Code Chapter 29 (Bill 15-23), the City of Baltimore's rental-licensing and housing-code provisions (Article 13), and Maryland's Renters' Rights and Stabilization Act of 2024 (HB 693).