Renting in Maryland and DC (2026): Security Deposits, Rent Limits, Licenses, Lease Red Flags and a Plan to Buy

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• Limit: under current Maryland law a landlord generally may not charge more than 1 month's rent per unit as a security deposit, no matter how many tenants there are. The only exception allows up to 2 months' rent in a narrow utility assistance situation that both sides agree to in writing.
• Overcharges: a tenant charged too much can recover up to three times the extra amount plus attorney's fees.
• Receipt: the landlord must give a written receipt, which is usually in the lease.
• Return: within 45 days after the tenancy ends, the landlord must return the deposit, plus interest when it was held at least 6 months and is $50 or more, minus damages rightfully withheld. Deductions must be itemized in writing within that time.
• Late fees: a Maryland lease may not charge a late fee of more than 5% of the rent due for that period.

There is no statewide rent cap in Maryland, but some local governments have one.

Montgomery County: the allowable increase for regulated units is CPI-U plus 3% or a flat 6%, whichever is lower, which is 5.2% from July 1, 2026 through June 30, 2027. The rules apply mainly to units more than 23 years old, with exemptions. Rent on a regulated unit may go up only once every 12 months, at renewal or a new lease, and landlords must give 90 days' written notice before any increase, for both regulated and exempt units.

Prince George's County has its own permanent rent stabilization law for most units built before 2000, and Takoma Park has its own program. Check the county rules for the specific unit.

• Baltimore City: every non-owner-occupied rental must be registered and licensed. To get a license, the property needs a passing inspection by a Maryland-licensed home inspector registered with the city (or a passing Section 8 inspection), current lead certification for each unit, paid registration fees and no open code violations. You can search licensed properties on the city's site.
• Montgomery County requires a rental license from DHCA before a home can be rented.
• Statewide lead law: rental homes built before 1978 must be registered with the Maryland Department of the Environment and have a valid lead inspection certificate at each tenant turnover, unless certified lead-free. Ask for the certificate before you sign.
• Federal lead disclosure: for most housing built before 1978, landlords must give you the lead pamphlet and disclose known lead-based paint before you sign a lease.

DC's Office of the Tenant Advocate publishes a Tenant Bill of Rights that landlords must give you. A few key points from the September 2026 version:

• Disclosures: when you apply, the landlord must disclose the rent, whether the unit is rent-controlled, the application fee, the security deposit terms, recent housing code violations, and ownership and business license information, among other items.
• Security deposit: it may not exceed the initial monthly rent and must be held in an interest-bearing account. Within 45 days after you move out, the landlord must return it (with interest for tenancies of 12 months or more) or give written notice of any amounts owed.
• Rent increases: every tenant is entitled to at least 60 days' written notice of a rent increase. For most rent-controlled units, the cap is the lesser of CPI plus 2% or 10%, with a lower cap for registered elderly or disabled tenants.
• Entry: except for emergencies, the landlord generally must give 48 hours' notice before entering, unless the lease says otherwise or you agree.
• Fair housing: DC law prohibits discrimination based on a long list of traits, including source of income.
• If the property is sold, DC's Tenant Opportunity to Purchase Act may give you rights. See our TOPA guide.

• A deposit above the legal limit, or a late fee above 5% in Maryland.
• No rental license where one is required, or a landlord who will not share license or lead certificate information.
• Pressure to pay a deposit or rent by wire, gift card or payment app before you have seen the unit or signed a lease.
• A listing price far below similar units, or a landlord who cannot meet in person or show the inside. These are common signs of rental scams.
• Blank spaces in the lease, or verbal promises that are not written into it.
• Rules that treat voucher holders differently. In Maryland, source of income is a protected class under state fair housing law, and DC protects it too.
• Fees that are not explained in writing. Ask what every charge is for before you sign.

This is general information, not legal advice. Local rules vary and change, so confirm with the county or DC agency, and with a Maryland or DC attorney for your situation.