Baltimore, MD
Is Baltimore a good place to buy rental property in 2026?
HUD Fair Market Rent, FY2026, puts a Baltimore 2-bedroom at $1,857/mo and a 3-bedroom at $2,358/mo. At a stated $265,000 price with the 3-bedroom rent, the sample underwrite below comes to +$22/mo cash flow, a 6.8% cap rate, and a 1.10 DSCR. Whether a specific Baltimore property works depends on its own price, rent, tax bill, and insurance.
Data as of 2026; verify locally before you offer.
Baltimore rent benchmark
HUD Fair Market Rent, FY2026, for the county or metro that contains Baltimore. It is a housing-program benchmark, not a comp for one property. Use it as your starting rent, then replace it with current leases for the address.
| Bedrooms | HUD FMR / month |
|---|---|
| 2 bedrooms | $1,857 |
| 3 bedrooms | $2,358 |
What the HUD rent pencils to
Sample underwrite at a stated $265,000 price using the HUD 3-bedroom benchmark — not a listing. TrueCap ran its sample deal with $2,358/mo of rent and every other assumption unchanged.
- Monthly cash flow
- +$22/mo
- Cap rate
- 6.8%
- DSCR
- 1.10
Assumptions: $265,000 price, $2,358/mo rent (HUD FMR, 3 bedrooms), 20% down, 6.6% rate, 30-year loan, 3% closing costs, 1.49% property tax, 0.5% insurance, 5% vacancy, 8% management, 5% maintenance, 5% CapEx reserve. Change any of them in the analyzer and the numbers move with you.
Three things to verify locally
- Property tax bill. Pull the parcel's current bill from the county assessor or treasurer, and check how the assessment resets after a sale. The sample above uses 1.49% of price; your Baltimore bill may be higher or lower.
- Rental licensing and permits. Many cities require a rental license, an inspection, or a certificate of occupancy before you can lease. Confirm the Baltimore rules for the address and budget the fees before you close.
- Insurance quotes. Get a written landlord-policy quote for the specific property, including wind, hail, or flood coverage where it applies. Premiums vary by ZIP, building age, and roof.
For the state's starting numbers, see the Maryland guide.
Ready to run a Baltimore property?
Start with Baltimore context, then verify the address, rent, property tax, insurance, and every other assumption. Every assumption is labeled and editable.
The terms behind the numbers
Related reading
- How to estimate rent on a rental property (2026) →
- Cash flow vs appreciation: which rental strategy actually wins in 2026? →
- Vacancy rate for rentals: what to assume in 2026 (and why 5% is usually a guess) →
- DSCR loans explained: what they are, when they make sense, what they cost in 2026 →
- What's a good cap rate for rental property in 2026? →
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