Every Maryland rental unit built before 1978 must be registered with the Maryland Department of the Environment and pass a lead dust inspection before each new tenant moves in, under the Reduction of Lead Risk in Housing law.
For a DSCR investor buying an older Maryland rental, the lead law adds a registration fee and an inspection at every turnover, so both belong in the expense and vacancy assumptions. For the Maryland rules that apply statewide, see DSCR loans in Maryland.
Which Maryland rentals are covered by the lead law?
Any property built before 1978 with at least one rental unit is affected property under Environment 6-801, including each rental unit in a multifamily building.
- The statute covers rentals built before 1950 and, on and after January 1, 2015, rentals built before 1978.
- MDE's compliance summary says compliance is mandatory for pre-1978 rental units regardless of renovation history.
Exception: Units certified lead-free may be exempted from annual registration fees and further risk reduction requirements, per MDE's lead FAQ.
According to Md. Code, Environment 6-801, Maryland General Assembly, and MDE's Summary of Property Owner Compliance and lead FAQ, as of October 2026.
What does MDE registration cost?
MDE's current compliance summary lists $75 per rental unit, renewed every two years by December 31, and an owner must register within 30 days of acquiring the property.
- A March 2026 legislative fiscal note says the Budget Reconciliation and Financing Act of 2025 set the fee at $75 per unit, collected once every two years.
- A change in ownership requires a new registration.
- A fourplex built in 1962 would owe 4 units times $75, or $300, per two-year registration.
Exception: MDE's rental owner web page still lists a $30 annual fee per unit, so confirm the current amount with MDE before you budget.
According to MDE's Summary of Property Owner Compliance, the SB 872 fiscal note, Department of Legislative Services, March 20, 2026, and MDE's rental property owner page, as of October 2026.
What inspection is required each time a tenant moves out?
Before each change in occupancy, the unit must meet the risk reduction standard, including a lead-contaminated dust inspection by an MDE-accredited inspector before the new tenant moves in.
- A change in occupancy means the unit is vacated and possession is surrendered to the owner or abandoned, under 6-801(c).
- The SB 872 fiscal note says the owner must satisfy the risk reduction standard at the initial and each later change of occupancy.
Exception: A unit with no lead paint inside and intact exterior paint can be certified limited lead-free and exempted from the risk reduction rules under Environment 6-804, but the owner must submit a new inspector certification every two years to keep the exemption.
According to MDE's Inspections for Rental Housing page, Environment 6-801 and 6-804, and the SB 872 fiscal note, as of October 2026.
What happens if an owner doesn't comply?
MDE can order compliance and assess civil penalties, and its rental owner page warns that failing to comply can bring fines and loss of legal protections.
- MDE's compliance summary says a Notice of Defect starts a 30-day deadline under the modified risk reduction standard.
Exception: Current penalty amounts were not confirmed from statute text here. Ask a Maryland attorney about exposure on a specific property.
According to MDE's lead FAQ, rental property owner page and Summary of Property Owner Compliance, as of October 2026.
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This page is general education about business-purpose real estate financing and state law as published by official sources on the date shown. It is not legal, tax or lending advice, not an offer to lend and not a rate quote. Laws and lender guidelines change; confirm current rules with the lender, the title company and your own attorney or tax adviser.