Subject
title
Adoption of Resolution to Establish Maximum Rate of Rent Increase, as Required by Section 18-194 of the Rockville City Code Entitled “Voluntary Rent Guidelines and Notice Requirements of Rent Increases”
end
Department
Housing and Community Development
Recommendation
Staff recommend that the Mayor and Council adopt the resolution.
Change in Law or Policy
This resolution will supersede Resolution 03-25 and establish the 2026 Voluntary Rent Guideline (VRG) at 2.59 percent, which is a decrease from the 2025 VRG of 3.3 percent.
Discussion
Per City Code Section 18-194, landlords are encouraged to hold rent increases at the lowest level possible and not more than the percentage established annually by resolution of the Mayor and Council. The Voluntary Rent Guideline (VRG) provides property managers and landlords with a recommended maximum percentage rent increase.
Consistent with previous years, staff calculated the 2026 VRG based on the Consumer Price Index (CPI) for market-rate rental housing for the Washington-Arlington-Alexandria, DC-VA-MD-WV area. The change in CPI for market-rate rental housing for the period of January 2025 through December 2025 is 2.59 percent. Accordingly, staff recommend adoption of the attached resolution establishing a 2026 VRG of 2.59 percent with an effective date of April 14, 2026.
Table 1. Calculation for 2026 Voluntary Rent Guideline
|
CPI January 2025 |
431.781 |
|
CPI December 2025 |
442.978 |
|
Difference |
11.197 |
|
Change in CPI |
2.59% |
Source: U.S. Bureau of Labor Statistics, 2025 Consumer Price Index for All Urban Consumers, Rent of primary residence in Washington-Arlington-Alexandria, DC-VA-MD-WV, https://data.bls.gov/pdq/SurveyOutputServlet
Mayor and Council History
The Mayor and Council annually adopt a resolution to establish a voluntary maximum rate of rent increases, as required by Sec. 18-194 of the City Code entitled “Voluntary Rent Guidelines and Notice Requirements of Rent Increases.” On March 17, 2025, the Mayor and Council adopted Resolution 03-25, setting the Voluntary Rent Guideline at 3.3 percent.
Next Steps
Upon the Mayor and Council’s approval of the Voluntary Rent Guideline, staff will notify property managers and owners. By law, landlords must provide a tenant with 90 days of notice before increasing the tenant’s rent and are prohibited from imposing more than one rent increase per unit in any 12-month period if the same tenant continuously rents that unit.