If you own rental property in Maryland, your leasing routine just changed in major ways.

As of October 1, 2026, new state laws directly impact how you screen prospective renters, how you evaluate housing vouchers, and how you manage tenant rent payments:

• The Maryland Fair Chance Housing Act (SB 937), which restricts when and how you can run criminal background checks.
• The Income-Based Housing Subsidy Protections (SB 335 / HB 315), which bans rejecting voucher holders over credit scores and restructures how income ratios are calculated.
• The Positive Rent Reporting Law (SB 335 / HB 315), which requires covered owners to offer tenants an opt-in way to build credit with on-time rent.

If you manage single-family homes, townhouses, or multifamily units in Prince George’s, Montgomery, Howard, or Anne Arundel counties, here is what these changes mean on the ground, without the legal jargon.

---

1. Income-Based Housing Subsidies: Ending Credit-Based Voucher Rejections

Maryland has banned discrimination based on “source of income” for years. However, many independent landlords still routinely filtered out Housing Choice Voucher (Section 8) applicants using credit score minimums or full-rent income formulas.

Under SB 335 / HB 315, that loophole is closed:

• Credit scores cannot be the basis of a denial: If an applicant pays with an income-based housing subsidy, you cannot reject them because of their credit score, a lack of credit history, or past adverse credit.
• Income calculations cover only their share: If your property rents for $2,000, and a voucher covers $1,600, you can only apply your income ratio (such as requiring income equal to 3x monthly rent) to the tenant’s $400 out-of-pocket obligation, not the full $2,000.
• What you can still verify: You can still verify that the applicant has sufficient income to cover their portion of the rent and utilities. You can also verify past tenancy history, including landlord references, lease violations, property damage, or unpaid utilities.
• Enforcement: Unlike portfolio-size caps on other laws, these anti-discrimination rules apply universally, and denials are investigated as discriminatory housing practices by the Maryland Commission on Civil Rights.

---

2. The Fair Chance Housing Act: How Criminal Background Screening Changes

If you own or manage 5 or more residential rental units in Maryland, you can no longer run criminal background checks at the start of your application process.

No Upfront Questions or Blanket Disclaimers

You cannot include check boxes on your application asking about criminal records, and you cannot place phrases like “no felonies” or “clean record required” in your public listings.

The Two-Stage Screening Process

• Stage 1 (Financials & References First): Review credit, income, employment, and past landlord history just like you always have. If the applicant meets your qualifications, extend a written conditional offer of tenancy.
• Stage 2 (Background Check Last): Only after the conditional offer is in the applicant’s hands are you legally permitted to run a criminal background check and evaluate any records.

Mandatory Individualized Review

If a conviction shows up, blanket rejections are prohibited. Landlords must evaluate the offense’s nature, how much time has passed, the applicant’s age at the time, and any evidence of rehabilitation. If an offer is rescinded, the landlord must provide a written explanation, supply a copy of the report, and give the applicant a reasonable window to dispute errors. Fines for non-compliance run up to $500 per violation.

---

3. Positive Rent Reporting: Offering Tenants Credit for On-Time Rent

The second part of SB 335 / HB 315 applies to housing providers owning 6 or more residential units across the state.

The state now requires covered owners to provide tenants with a mechanism to build credit by reporting on-time rent payments to at least one major credit bureau (Experian, Equifax, or TransUnion):

• Strictly Opt-In: You must offer the program in writing, but tenants choose whether to participate. Automatic enrollment is prohibited.
• On-Time Payments Only: You may only report on-time, full payments. Late or missed payments cannot be reported through this channel.
• Fee Caps: Landlords can pass the administrative cost along, but the fee is capped at actual cost or $10 per month, whichever is less, and can never be charged as rent.
• Compliance Deadlines: New leases signed on or after October 1, 2026, must include the offer at signing. Current in-place tenants must receive their written enrollment offer no later than January 1, 2027, with annual re-offers thereafter.

---

Local County Considerations

While state laws set the floor, local jurisdictions enforce additional requirements:

• Montgomery County: County law already has local Fair Chance screening rules and requires mandatory two-year lease term offers at signing and renewal.
• Prince George’s County: State disclosures and rent reporting elections must be integrated into county-mandated lease forms alongside local rent stabilization guidelines.
• Howard and Anne Arundel Counties: Local licensing officials mandate clear itemization of all fees. Charging administrative fees for rent reporting without signed addenda can lead to consumer protection complaints.

The Landlord Action Checklist

To align your Maryland rental business with these October 2026 mandates:

1. Update Voucher Calculations: Adjust screening formulas to calculate income ratios only against the tenant’s out-of-pocket rent, and eliminate credit score minimums for voucher holders.
2. Revise Marketing and Applications: Remove criminal record questions from initial rental applications and public advertisements.
3. Adopt Two-Step Screening: Transition to extending written conditional offers before pulling background reports.
4. Update Lease Packets: Add positive rent reporting opt-in forms to new lease agreements.
5. Send Existing Tenant Notices: Plan your delivery of rent reporting offers to current residents before the January 1, 2027 deadline.

---

Let Mainstay Property Management Handle the Red Tape

Keeping up with Maryland tenant regulations can quickly feel like a full-time compliance job instead of an investment strategy. Missing an applicant screening rule or failing to document a disclosure exposes rental owners to real liability.

Mainstay Property Management provides complete, local oversight across Central Maryland:

• Legally vetted applicant screening that handles voucher calculations and two-step background checks in full compliance with state law.
• Automated credit reporting integration for seamless tenant enrollment.
• Comprehensive lease management and local county licensing support in Prince George’s, Montgomery, Howard, and Anne Arundel counties.

Reach out to Mainstay Property Management today to schedule a review of your screening and leasing workflows.