The Montgomery County Department of Housing and Community Affairs (DHCA) reported a significant decline in rental units classified as Troubled or At-Risk in its Fiscal Year 2026 Troubled Properties Report.
A “Troubled Property” is a multifamily rental property that Montgomery County determines has significant housing code violations based on the number and severity of violations found during inspections. Under DHCA’s system, Troubled Properties receive the highest level of oversight. Once designated as Troubled, 100% of the property’s rental units must be inspected every year. Property owners may also be required to submit corrective action plans and maintenance reports showing how problems will be addressed.
The number of units in Troubled Properties fell 78% from FY24, from 7,269 units across 93 properties to 1,614 units across 37 properties. At-Risk units declined 69% during the same period, from 6,375 units across 76 properties to 1,955 units across 35 properties.
DHCA attributed the improvement to increased enforcement, rent stabilization restrictions and stronger landlord compliance. The County’s rent stabilization law limits rent increases at properties designated as Troubled or At-Risk, while new reinspection fees that took effect May 1 provide another incentive to quickly correct violations. DHCA completed more than 13,000 mandated inspections in FY26 and issued 2,354 notices of violation to 442 multifamily rental properties.
Despite the overall improvement, violations remain at some properties. Of the 37 Troubled Properties in FY26, 21 properties comprising 1,478 units remain on the list because required corrective action plans and/or maintenance reports were not submitted. DHCA reported that 58 multifamily properties failed to make required repairs following notices of violation, resulting in 466 citations.
