Security Deposit Interest in DC: Interest accrued in (2026)
DC housing providers must hold security deposits in an interest-bearing escrow account in the District and return the deposit with interest withi… Calculator, statute citation, Last Verified date o
Quick answer
Yes — District of Columbia requires landlords to pay interest on qualifying security deposits. DC housing providers must hold security deposits in an interest-bearing escrow account in the District and return the deposit with interest within 45 days of tenancy termination; interest follows the prevailing rate under 14 DCMR §§ 308-311 (D.C. Code § 42-3502.17). The rule comes from D.C. Official Code § 42-3502.17; 14 DCMR §§ 308-311 (Security Deposit Act regulations). State statute (official text) · 2026-10-28
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The current rate in District of Columbia
District of Columbia does not fix the rate in the statute — it moves with a benchmark: Interest rules live in the Housing Regulations (Security Deposit Act), 14 DCMR §§ 308-311, referenced by D.C. Code § 42-3502.17: deposits must accrue interest in a separate interest-bearing escrow account located in DC, and the provider must post notice of where the deposit is held and the prevailing interest rate (per the official DC Tenant Bill of Rights). The historical flat 5% minimum (1980s) is no longer the standard. One law-firm source reports the provider may keep 1% of the interest as an administrative fee — not verified against the DCMR text..
Because the benchmark resets periodically, always check the current published value before relying on an older figure. Where we have confirmed the current value against the official announcement, the calculator above applies it; where we have not, the calculator says so instead of guessing.
How interest must be paid
Not specified in sources reviewed (to be verified against 14 DCMR § 308 text) Deposit plus accrued interest due within 45 days after end of the tenancy (Rental Housing Commission decision interpreting § 42-3502.17 and 14 DCMR §§ 308-311); the Office of Administrative Hearings adjudicates nonpayment-of-interest complaints (§ 42-3502.17(b)).
Who the law applies to
Rental accommodations covered by the Rental Housing Act / Security Deposit Act; deposit capped at one month's rent (§ 42-3502.17; clarified 2026 that amounts labeled 'last month's rent' count toward the cap). No unit-count threshold verified.
How District of Columbia compares in the Northeast
| State | Rate | Rule |
|---|---|---|
| Connecticut | Not less than the 'deposit index' for that year as defined in C.G.S. § | interest required |
| Delaware | — | no statewide requirement |
| District of Columbia | Interest accrued in the interest-bearing escrow account at the prevail | interest required |
| Maine | — | no statewide requirement |
| Massachusetts | 5% per annum, or the lesser amount of interest actually received from | interest required |
| New Hampshire | Interest at the rate paid on regular savings accounts at the bank wher | interest required |
| New Jersey | Interest actually earned in the NJ interest-bearing account (no statew | interest required |
| New York | Interest actually accrued/paid on the deposit in the interest-bearing | interest required |
| Pennsylvania | Interest earned in the bank escrow account, with the landlord retainin | interest required |
| Rhode Island | — | no statewide requirement |
| Vermont | — | no statewide requirement |
The statute behind it
| Field | Value | | --- | --- | --- | | Citation | D.C. Official Code § 42-3502.17; 14 DCMR §§ 308-311 (Security Deposit Act regulations) | | Official text | code.dccouncil.gov | | Last verified | 2026-10-28 |
Cross-checked against: DC Office of Tenant Advocate — Tenant Bill of Rights (official; interest-bearing account + posted prevailing rate under 14 DCMR §§ 308-311), DC Rental Housing Commission decision (dhcd.dc.gov) — deposit plus interest returnable within 45 days under § 42-3502.17 and 14 DCMR §§ 308-311.
Statutes get amended. If you are relying on this page — for a move-out, a dispute, or a lease draft — click through to the official text and confirm the current wording.
FAQ
Does District of Columbia require landlords to pay interest on security deposits?
Yes. Under D.C. Official Code § 42-3502.17; 14 DCMR §§ 308-311 (Security Deposit Act regulations), qualifying landlords in District of Columbia must pay interest — currently Interest accrued in the interest-bearing escrow account at the prevailing rate (no fixed statutory percentage); provider must post the name of the institution and the prevailing interest rate. Rental accommodations covered by the Rental Housing Act / Security Deposit Act; deposit capped at one month's rent (§ 42-3502.17; clarified 2026 that amounts labeled 'last month's rent' count toward the cap). No unit-count threshold verified.
How is deposit interest calculated in District of Columbia?
At Interest accrued in the interest-bearing escrow account at the prevailing rate (no fixed statutory percentage); provider must post the name of the institution and the prevailing interest rate. Not specified in sources reviewed (to be verified against 14 DCMR § 308 text) The calculator at the top of this page applies exactly this rule to your deposit amount and dates.
When do I get the interest?
Deposit plus accrued interest due within 45 days after end of the tenancy (Rental Housing Commission decision interpreting § 42-3502.17 and 14 DCMR §§ 308-311); the Office of Administrative Hearings adjudicates nonpayment-of-interest complaints (§ 42-3502.17(b)).
Independent second source · 2026-10-28Related guides
- All states: security deposit interest by state · rent increase rules by state
- Tools: deposit interest calculator · rent increase calculator
- Neighboring states: Connecticut · Delaware
- Also moving? Read District of Columbia rent increase rules.
This page is information, not legal advice — see the full disclaimer.