DSCR Loans in Maryland
Last updated: May 2026
Maryland benefits from the massive federal government and defense contractor employment base centered around the D.C. metro, creating one of the most recession-resistant rental markets in the country. Baltimore offers aggressive cash flow opportunities, while the D.C. suburbs provide appreciation-driven plays. The state's diverse geography means investors can find deals across a wide spectrum of price points and tenant profiles.
Property Tax
1.07%
State Income Tax
2.0% - 5.75%
Landlord Friendly
Moderate
Eviction Timeline
1 - 3 months
Property Taxes in Maryland
Maryland property taxes combine a state rate of $0.112 per $100 of assessed value with county and municipal rates. Baltimore City carries one of the highest combined rates at roughly 2.25%, while Howard County averages about 1.01% and Montgomery County sits near 0.94%. The dramatic difference between Baltimore City and suburban counties is a critical factor in DSCR underwriting.
Insurance Costs
Typical investment property insurance in Maryland runs $1,400 - $2,000/yr. The Chesapeake Bay and Atlantic coast create meaningful flood and wind exposure for properties in Ocean City, Annapolis, and low-lying areas around Baltimore Harbor. Inland properties in Frederick and Carroll counties enjoy more standard premiums.
Landlord-Tenant Laws
Maryland does not have statewide rent control, though some municipalities like Takoma Park have their own rent stabilization rules. The eviction process through District Court is relatively efficient, often completing in 30 to 60 days for nonpayment cases. Security deposits are capped at two months' rent, and landlords must hold them in escrow accounts.
Top Investment Markets in Maryland
Baltimore
Median prices under $200K in many neighborhoods with rents that can produce 1% rule properties and double-digit cap rates.
Frederick
Growing suburb along the I-270 corridor with strong school districts and rising demand from D.C. commuters.
Columbia
Planned community in Howard County with consistently low vacancy rates and a high-income tenant pool.
Hagerstown
Affordable entry point in western Maryland with expanding warehouse and logistics employment along I-81.
Silver Spring
Dense, transit-oriented rental market just outside D.C. with high demand from young professionals and government workers.
DSCR Considerations in Maryland
Baltimore is one of the strongest DSCR markets in the entire Northeast thanks to its rent-to-price ratio, but investors should factor in higher insurance and vacancy risk in certain neighborhoods. The D.C. suburban markets carry lower yields but stronger appreciation and tenant quality. Many DSCR lenders view Maryland favorably and offer competitive terms, especially for properties within the Baltimore-Washington corridor.
Run the numbers for Maryland
Use our free DSCR calculator to see if your Maryland investment property pencils out.
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