Maryland Late Fee Calculator & Rent Laws (2026 Guide)

Getting hit with a late fee is frustrating, but some Maryland landlords attempt to charge exorbitant fees or stack daily penalties. Fortunately, Maryland law heavily protects tenants from predatory late fee practices.

Understanding MD Real Property Code § 8-208

Maryland law is unambiguous when it comes to late fees. The law explicitly limits the penalty a landlord can impose for late payment of rent.

• Monthly Renters: The late fee cannot exceed 5% of the monthly rent. For example, if your rent is $1,500, the absolute maximum late fee your landlord can charge is $75.
• Weekly Renters: If rent is paid in weekly installments, the penalty cannot exceed $3 per week or a total of $12 per month.

If your landlord includes a clause in your lease that charges a higher fee (such as a 10% late fee or a $100 flat fee on a $1,000 apartment), that specific clause is considered void and unenforceable in a Maryland court.

Are Daily Late Fees Legal in Maryland?

Some landlords attempt to skirt the 5% cap by charging a "daily late fee" (e.g., $10 per day the rent is late). While a landlord can theoretically charge a daily fee, the total accumulation of those daily fees can never exceed the 5% monthly cap.

Once the daily fees hit 5% of your monthly rent, the landlord must stop charging them for that rental period.

What About Subsidized Housing (Section 8)?

If your rent is subsidized by the government (such as through a Section 8 voucher), the 5% cap applies only to the portion of the rent that you, the tenant, are responsible for paying.

For instance, if the total rent is $2,000, but the housing authority pays $1,500 and you pay $500 out of pocket, the landlord can only charge a 5% late fee on your $500 share (which would be $25). They cannot charge 5% on the entire $2,000 amount.

---

Frequently Asked Questions