Montgomery County MPDU program: rentals, buying and the drawing

Montgomery County, Maryland's moderately priced dwelling unit (MPDU) program sells and rents homes below market price to households with moderate incomes. To rent one, you apply at each apartment building that has MPDUs. To buy one, you earn a county certificate, then enter a lottery, a random drawing, for each home you want. Buyers must earn at least $40,000 a year.

What is an MPDU?

An MPDU is a lower-priced apartment or home in a new private building. County law requires most new buildings with 20 or more homes to include some MPDUs. A rule like this is called inclusionary housing: a city or county requires builders to set aside some homes at lower rents or prices.

The county's FAQ says MPDUs are not low-income housing. The MPDU program itself doesn't pay any of your rent or price. If you want to buy but earn under $40,000, the county points you to its MPDU rentals. It also points you to the Housing Opportunities Commission (HOC), the county's housing office for households with lower incomes.

How do you rent an MPDU?

You apply at the building, not to the county. The county publishes a list of apartment buildings with MPDUs, with each leasing office's contact details. It doesn't show which apartments are free, so call each building, ask whether an MPDU is open, and ask for an application. The leasing office checks your income and credit and decides whether you qualify. You can apply at several buildings.

The county's rules for renters say:

• No one in your household can own a home or other residential property now or in the past five years, or have ever owned an MPDU.
• Your household's income before taxes must be under the maximum for your household size and over the building's own minimum.
• Your credit must meet the building's standard.
• You can use an HOC voucher, which pays part of your rent, or other rent help. A family member can pay your security deposit.
• The building may charge an application fee, but it should be $25. If it charges more and you don't move in, it must return the amount over $25. It can't charge you an amenities fee.
• Your household must have at least as many people as the apartment has bedrooms.

Maximum incomes for new tenants took effect May 1, 2026. Garden apartments are low buildings; high-rises have five stories or more.

If your income rises after you move in, you can renew your lease as long as your income stays under 130% of these amounts. The county sets MPDU rents. The building can raise your rent only once a year, by no more than the county's yearly guideline, and must give you 90 days' notice.

How do you get a certificate to buy an MPDU?

You get a certificate by meeting the county's rules, taking three classes and sending in your papers. To buy, no one in your household can own a home now or have owned one anywhere in the past five years. Your household's income before taxes must be at least $40,000 and no more than the county's maximum for your household size, effective May 1, 2026. Those maximums are the same as the high-rise column in the table above, from $81,500 for one person to $135,000 for six.

You also take three free online classes, in this order. Pass each class's test with a score of 80% or more before you take the next one. The county's purchase page has the schedule:

1. MPDU Orientation Seminar. It lasts 2.5 hours, on the second and fourth Thursday evenings of each month.
2. First-Time Homebuyer Class. It lasts 8 hours, on the second Saturday of each month.
3. Application Tutorial. The MPDU office sends you instructions within 30 days after your classes.

The Greater Washington Urban League runs the first two classes for the county. To sign up, fill in the county's screening form and email it to MPDU@GWUL.org. Use the same name and email address everywhere, because a mismatch can stop you from applying. The classes count for two years.

Then you upload your papers to the county's MPDU application portal:

• a photo ID for every adult;
• your first-time homebuyer class certificate;
• a letter from a mortgage lender, dated within the last three months, saying it would lend you at least $150,000 (a pre-qualification letter). Ask for an amount at least as large as the price of the homes you want, because the county compares it with each home's price;
• the latest federal tax return for every adult, with the W-2 or 1099 forms, the yearly pay statements from employers or clients. A return you prepared yourself isn't accepted, so get a free tax return transcript from the Internal Revenue Service if you need one;
• the two most recent pay stubs for each earner if paid every two weeks, or four if paid weekly. Bank statements don't count as proof of income.

The county takes about 30 days to review your papers. If you qualify, it sends you a Certificate of Eligibility, good for one year.

How does the MPDU drawing work?

When a home is for sale, the county posts it on its MPDUs for Sale page, and the drawing takes place about two to three weeks later. For a new home, you enter online with your certificate number. For a resale, you first call the real estate agent listed for the home, who gives you an offering code to enter with.

The county rejects your entry if your lender's pre-approval is lower than the price, or if your household doesn't fit the number of bedrooms:

A smaller household can still be considered if too few households of the right size enter.

After the deadline, the county ranks the entries in four steps:

1. It gives each entry priority points: 1 for living in the county, 1 for working there, and 1 for each year in a row you have held a certificate, up to 3. The most anyone can have is 5.
2. It sorts the entries into groups by points, from most to fewest.
3. A computer puts the names in each group in random order.
4. The seller calls buyers in that order, one at a time, until the home is sold. For a new home, the builder's sales staff calls. For a resale, the home's real estate agent calls.

Turning down a home doesn't hurt your chances in later drawings.

An example. Say you live and work in the county and just got your certificate: you have 2 points. Another buyer lives in Virginia, works in the county and has held a certificate for three years in a row: 4 points. That buyer is in a higher group, so they rank ahead of you however the random draw goes. Keeping your certificate current adds a point a year, up to 3.

What are the rules after you buy an MPDU?

Most MPDUs come with a 30-year control period, set out in covenants, legal promises recorded with the home. A very few resale homes have a 10-year period, so check your covenant. During the control period:

• you must live there as your main home;
• you can't refinance, or take a new loan on the home, for more than the resale price the county sets;
• you can't buy any other home;
• if you sell, you sell at the price the county sets, through its resale process.

Paying off your mortgage doesn't end these rules. After the control period, you can sell at market price, but you pay the county half of the extra profit. Call the MPDU office before you sell or refinance, and ask it to estimate that payment, which the county's FAQ calls shared profit.

Is Rockville's MPDU program the same?

No. The City of Rockville, inside Montgomery County, runs its own MPDU program for buyers. It has its own application, its own certificate that you renew every two years and its own waitlist, a list you join now for a home later. Check whether a home is a county or a Rockville MPDU before you apply.

What should you do next?

Call the buildings on the county's list to ask about MPDU rentals. If you want to buy, send the screening form to sign up for the orientation seminar, then take the homebuyer class. To see open listings in the state, go to our Maryland page or the Maryland homes and apartments on our listings page. Our qualify check shows which fit your household's size and income. If you'd rather live elsewhere, find inclusionary housing in other places, where builders set aside lower-priced homes the same way.