Montgomery County Sees Increased Code Compliance Among Landlords Following Increased Enforcement and Rent Stabilization Measures

By Katie Renzi, NLIHC State and Local Research Intern 

Montgomery County, Maryland’s Department of Housing and Community Affairs (DHCA) released its annual Troubled Properties Report at the beginning of September, detailing a steep reduction in rental units failing housing code inspections over the 2025 fiscal year (FY). The report detailed the number of “Troubled” properties, those with numerous and severe health and safety violations, and those “At-Risk” of becoming “Troubled.” Between the 2024 and 2025 FYs, the number of units in “At-Risk” properties fell by 57%, while the number in “Troubled” buildings fell by 69%. Additionally, the number of citations issued for failing to comply and fix prior violations fell by more than half compared to FY24, indicating landlords were more likely to quickly address compliance issues, including pest infestations and mold growth. Overall, the portion of units in compliant properties increased from 83% in FY24 to 94% in FY25, totaling 79,949 rental units. 

The DHCA has implemented more rigid and routine housing code enforcement since adopting additional code enforcement regulations in 2016. Bill 19-15, “Licensing of Rental Housing-Landlord-Tenant Obligations,” strengthened the inspection component of the preexisting rental housing licensing program by requiring all rental properties to be inspected at least once every three years, while housing with immediate health and safety issues received annual inspections. This legislation was complemented by the passage of the “Troubled Properties” Executive Regulation in 2016, which created a scoring mechanism for properties based on the severity and scale of code violations, using the score to identify “Troubled” properties. Together, these pieces of legislation created more robust and efficient code enforcement mechanisms for identifying and penalizing properties with histories of non-compliance. 

The increase in compliance during the 2025 fiscal year is attributed to the implementation of the County’s Rent Stabilization Executive Regulation in July 2024. The regulation’s primary purpose is to cap rent increases in the county for multifamily properties that are at least 23 years old by the Consumer Price Index (CPI-U) plus 3%, or by 6%, whichever is lower annually. Consequently, for code enforcement, the statute also forbids landlords of “At-Risk” or “Troubled” properties from raising rents without the direct approval of the DHCA. While properties are considered “At-Risk” or “Troubled,” rent increases can only occur after a landlord has a Capital Improvement Petition approved by the DHCA, demonstrating that an increase is necessary to fund repairs and regain compliance. DHCA code inspectors reported that this regulation motivated owners of non-compliant properties to correct issues more quickly in order to avoid limits to rent increases. 

Living in rental units with pest infestations, mold, or inadequate heating or cooling systems can have serious impacts on tenants’ health and well-being. Healthy People 2030, an initiative by the Department of Health and Human Services designed to improve national health and wellbeing, sees the social determinants of health, including neighborhood, built environment, and economic stability, as priority areas. In a literature review on the quality of housing’s impact on health, substandard living conditions were associated with negative long-term health outcomes, including chronic disease, cognitive impairment, and stunted development in children. Low-income households, seniors, and those with disabilities are especially at risk, as they are both more likely to live in substandard housing and less able to obtain medical care due to financial or mobility constraints. 

Housing instability is another area acknowledged by Healthy People 2030 as having significant implications for health. Housing cost burden, defined by the Department of Housing and Urban Development as spending more than 30% of one’s income on rent, can force households to cut back on other necessities like food and healthcare. Unaffordable rents can drive households into substandard or overcrowded housing conditions, increasing the likelihood of disease exposure and worsening mental health. Cost-burdened households are also more susceptible to displacement, resulting in more frequent moves that can disrupt healthcare access and social ties. Reducing the portion of households experiencing housing cost burden is a Healthy People 2030 objective, but they report little or no detectable changes since 2017.  

Montgomery County’s Rent Stabilization policy and its effects on code enforcement illustrate how rent stabilization can strengthen other tenant protections. According to NLIHC’s Tenant Protections Database, at least 49 state and local governments have implemented rent stabilization policies, which broadly limit the amount landlords can increase rent annually for existing tenants. More than a dozen jurisdictions with rent stabilization policies have additional tenant protections built in, like just cause eviction standards or placing limits on rental fees. Further, rent stabilization policies can be complementary to an area’s preexisting tenant protections, forming a more comprehensive framework that ensures renters can access homes that are safe, stable, and affordable. 

The FY25 Troubled Properties Report can be found here. 

To learn more about Rent Stabilization or Code Enforcement and Habitability Standards, NLIHC has toolkits that describe how these policies operate, where they have been adopted, and how they can work with other protections. The Rent Stabilization toolkit can be found here, and the Code Enforcement and Habitability Standards toolkit can be found here.