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Maryland Rent Late Fee Rules: 5% of Unpaid Rent (2026)

Maryland Real Property § 8-208 prohibits a residential lease provision imposing a late-payment penalty above five percent of the unpaid rent due for the rental period for which the payment was delinquent. For leases paid in weekly rental installments, the statute instead limits the late penalty to $3 per week and no more than $12 per month. The “unpaid rent” calculation language took effect October 1, 2025 and is the current rule in 2026.

Last reviewed: September 3, 20261 official source cited
Monthly/other periodic rentMax 5% of unpaid rent due

Use the unpaid rent still due for the delinquent rental period, not automatically the original full rent when part has already been paid.

Weekly rentMax $3/week

The separate weekly-installment rule also limits the total to no more than $12 per month.

Current calculation wordingUnpaid rent due

Chapter 580 of 2025 changed the statutory base from the amount of rent due to the amount of unpaid rent due, effective October 1, 2025.

Statewide grace period hereNot supplied by § 8-208(d)(3)

This source is an amount/lease-provision limit. Do not invent a statewide grace period from this subsection.

Use the unpaid balance as the calculation base

For a non-weekly residential lease, § 8-208(d)(3)(i) prohibits a lease provision imposing a penalty above five percent of the unpaid rent due for the delinquent rental period. If the tenant made a partial rent payment, reconstruct the unpaid rent balance before comparing the late penalty.

Weekly rent uses a different dollar limit

When rent is paid in weekly rental installments, § 8-208(d)(3)(ii) separately limits the late penalty to no more than $3 per week and no more than $12 per month. Do not apply the ordinary five-percent formula to a weekly-rent lease without first checking which statutory branch applies.

The calculation changed effective October 1, 2025

Maryland Chapter 580 (HB 273) amended § 8-208(d)(3)(i) so the five-percent ceiling is calculated from unpaid rent due rather than the full amount of rent due. The Act took effect October 1, 2025, so the amended wording is current for 2026 reviews.

Do not infer a statewide grace period from the amount cap

Section 8-208(d)(3) limits what a residential lease may provide as a late-payment penalty, but this subsection does not itself state a general statewide number of grace days. Review the lease, payment date and any other applicable state or local rule separately from the five-percent calculation.

Documents to compare

  • Written residential lease and late-fee provision.
  • Rent due date and rental period.
  • Payment confirmations showing any partial rent paid.
  • Resident ledger showing the unpaid rent balance and late penalty.
  • If rent is weekly, records showing each weekly installment and total monthly penalties.
  • Any local ordinance or additional property-specific rule affecting timing.

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Amount cap ≠ grace-period rule. Maryland § 8-208 limits the late-payment penalty written into a residential lease and now bases the ordinary five-percent ceiling on unpaid rent due. This subsection does not itself supply a universal statewide grace period.

Official sources

Maryland General AssemblyMaryland Real Property § 8-208 — Residential lease provisions and late-payment penalties ↗

Current Maryland residential lease statute prohibiting a late-rent penalty above 5% of the unpaid rent due for the delinquent rental period, with separate limits for weekly rental installments. The unpaid-rent calculation language took effect October 1, 2025.

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