Maryland Fair Chance Housing Law Takes Effect for Renters

Several Maryland laws that change how landlords screen and treat renters took effect Oct. 1, according to the state's Department of Housing and Community Development (DHCD). The best known is the Fair Chance Housing Act, which limits when landlords may look into an applicant's criminal record.

Fair Chance Housing Act (SB 937)

The law applies to owners and managers of five or more residential rental units in Maryland, including units held through LLCs. Owner-occupied rentals are excluded, as are providers that do not run criminal background checks. Governor approval came May 26, 2026 as Chapter 752, with an Oct. 1 start date.

Key requirements, as summarized by DHCD and a legal-news analysis from RecordingLaw, include:

• Conditional offer first. Landlords generally cannot ask about criminal history until after making a conditional offer. A short list of serious offenses, such as sexual offenses, murder and human trafficking, is an exception to that rule.
• No drug or alcohol testing. Landlords may not require prospective tenants to take drug or alcohol tests.
• Notice up front. Before collecting an application fee, landlords must tell applicants in writing that criminal checks are used and that each case receives an individual assessment.
• Reasons and reassessment. If an offer is withdrawn because of criminal history, the landlord must state a specific reason in writing and explain how to ask for reassessment. Factors include the nature of the offense, the applicant's age at the time, time elapsed and evidence of rehabilitation.
• No blanket bans in ads. Landlords may not advertise that applicants with criminal histories will not be considered, unless federal law requires it.

Violations carry a civil penalty of up to $500 each, and the state law preempts comparable local ordinances. RecordingLaw noted that DHCD regulations and the model notice had not yet been published as of its article, so some practical details may still change.

Companion laws

Two related measures, Chapters 772 and 773 (HB 315 and SB 335), also began Oct. 1:

• Landlords generally may not refuse an applicant who uses an income-based housing subsidy because of the applicant's income, credit score or lack of one, or adverse credit history that predates the subsidy. Landlords can still check income for the part of rent the subsidy does not cover and can weigh references, lease violations, unpaid utilities, nuisance behavior and property damage.
• Landlords must offer tenants the option to have on-time rent payments reported to consumer reporting agencies, with the offer made at least once a year. Any fee is capped at the lesser of the landlord's actual cost or $10 a month. For leases signed before Oct. 1, the offer is due by Jan. 1, 2027. DHCD describes the requirement as applying to landlords generally, while RecordingLaw says it applies to owners of six or more units, so check the statute for your landlord's size.

What landlords must change

Property owners and managers will need to revisit their application forms, advertising language and screening practices. Listings that say "no felons" or similar blanket wording are no longer allowed for covered landlords, and screening companies' automatic rejections cannot be the last word on an applicant. Landlords will also need a process for written explanations and reassessment requests, along with a way to hand over the records they relied on when an applicant asks within 30 days. Smaller owners with fewer than five units are outside the Fair Chance Act, so applicants should not assume every Maryland landlord follows the same rules.

What this means for renters

Applicants with a record now have a clearer path to be judged individually rather than screened out at the door, and voucher holders have stronger footing against rejection based on income alone. Positive rent reporting may help renters who pay on time build credit, though it is optional, and a fee may apply.

If you believe a landlord broke these rules, keep your application, any written denial and the listing, and consider contacting DHCD or a local legal aid office. The guidance above is general information, not legal advice. For a related national policy change affecting voucher holders, see our report on new HUD Fair Market Rents.