Montgomery County officials say the County’s rent stabilization law is delivering on its promise to provide renters with stability while still allowing landlords to maintain their properties, according to a newly released report from the Department of Housing and Community Affairs.
The report, which covers the first 18 months following the law’s enactment, concludes that rent stabilization has curbed excessive rent and fee increases, improved housing conditions, and reduced displacement risk for tenants. County leaders say the law has been especially beneficial for residents in lower income areas, communities of color, and seniors or tenants with disabilities living on fixed incomes.
County Executive Marc Elrich said the results show the law is working as intended by stopping excessive rent hikes while allowing reasonable increases tied to inflation. He said the policy was carefully designed to protect tenants while ensuring landlords can still earn fair returns and maintain safe, healthy properties.
Council President Natali Fani-González said the legislation was critical for families facing stagnant wages and rising costs for necessities such as housing and child care. She said the report shows that tenants can now better predict rent increases and that landlords with serious housing code violations are being held accountable, as they are restricted from raising rents until those violations are resolved.
The law applies to rental properties more than 23 years old and limits annual rent increases to inflation plus 3%, capped at 6%. Landlords may petition for higher increases in limited circumstances, including major capital improvements or financial hardship. The law also regulates the types and amounts of fees landlords can charge.
According to the report, the Office of Rent Stabilization secured more than $90,000 in rent and fee refunds for tenants after responding to nearly 1,400 resident inquiries. The office also enforced or negotiated an average 56% reduction in proposed annual rent increases, with particularly large savings for tenants on month to month leases. County officials say enforcement has also discouraged future illegal rent and fee increases.
The report also highlights improvements in housing code compliance. Properties designated as “Troubled” or “At Risk” are barred from raising rents until violations are corrected. County inspectors reported a 69% reduction in units classified as Troubled and a 57% reduction in At Risk units compared to the previous year.
Housing industry groups sharply disputed the County’s conclusions, arguing that rent stabilization has severely harmed housing production. The Apartment and Office Building Association of Metropolitan Washington and the Greater Capital Area Association of REALTORS said recent County statements misrepresented the impact of rent control on development.
The groups said multifamily permitting has collapsed since rent control was fully implemented, with only 610 units permitted over five quarters and none of them market rate rentals. They said most of those units were tied to subsidized projects or tax abatement agreements, rather than private investment.
They also pointed to permitting data from neighboring jurisdictions, noting that while Montgomery County permitted very few units during the same time period, counties in Virginia, Washington, DC, and other parts of Maryland approved thousands of new units. The organizations argued that counting stalled projects in the pipeline does not guarantee future construction and cited national survey data showing most housing providers are reluctant to invest in markets with rent control.
The groups said the permitting slowdown represents a new status quo created by rent stabilization combined with rising taxes, fees, and regulatory requirements. They argued that increasing housing supply, not limiting rents, is the most effective way to reduce costs for renters and said the County lacks the funding needed to subsidize enough housing to meet demand.
They also warned that troubled and at risk properties face added financial strain under the law, as restrictions on rent increases make it harder to fund major repairs and improvements.
As County leaders point to tenant protections and improved enforcement outcomes, housing providers say the long term impact could be reduced housing availability and fewer new rental options. The debate over rent stabilization’s broader effects on Montgomery County’s housing market is likely to continue as more data emerges.
