Baltimore, MD — Rental Investment Analysis
🟢GOOD— solid returnsData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Baltimore, MD has a median cap rate of 8.0%, making it one of the top cash-flowing rental markets in the United States.
Baltimore is one of the strongest cash flow markets in the data. At $232,262 median home price, Baltimore is affordable by national standards and within reach for most conventional loans. With 3-bedroom rents around $2,235/month, the 8.0% cap rate tells the story. A typical rental here cash flows +$361/month after all expenses — strong passive income from day one.
The 1% rule comes in at 0.99% — doesn't quite pass, but close enough to find individual deals that work. DSCR of 1.25 means the property's income comfortably covers debt service — DSCR loans should be easy to qualify for here.
Bottom line: Buy here if you want reliable monthly income. Baltimore is a cash flow market — don't expect rapid appreciation, but the checks come in every month.
Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.
Cap Rate
8.0%
Above average
Monthly Cash Flow
+$361
After all expenses
Price-to-Rent
8.4
Investor-friendly
DSCR
1.25
Passes lender test
Key Metrics
- Median Home Price
- $232,262
- Average Rent (3BR)
- $2,235/mo
- Price-to-Rent Ratio
- 8.4(good)
- 1% Rule
- 0.99%(fails — need 1%+)
- Cash-on-Cash Return
- 7.2%
- Vacancy Rate
- 8.0%
Market Strength
- Unemployment Rate
- 4.4%(+0.1% vs national)
- Rent Growth (YoY)
- +2.9%(national avg)
- Population Growth
- +1.05% YoY
Property Tax Rate
1%
of assessed value (MD avg)
Median Income
$87,063
household (MD avg)
Rent-to-Income
30.8%
Moderate
Section 8 Max Rent
$2,235/mo
3BR voucher payment
MD Investor Climate
Landlord Friendly
5/10
State Income Tax
Has state tax
Property Tax
1% effective
Population Trend
+1.05% (3yr)
Population Movement (Tax Year 2021→2022)
Net Migration
-2,251 households
SHRINKING
Total Inflow
15,069
households moved in
Avg Income (New Residents)
$59,549
per household
Where they're coming from:
Where residents are leaving to:
Net outflow may indicate weakening demand — but can mean lower prices and higher cap rates.
Best Zip Codes in Baltimore for Investors
All Zip Codes in Baltimore
| Zip | Cap Rate | Cash Flow | Home Price | Rent (3BR) | DSCR |
|---|---|---|---|---|---|
| 21223 | 23.8% | +$1,104 | $75,916 | $1,970/mo | 3.73 |
| 21217 | 17.6% | +$924 | $99,013 | $1,940/mo | 2.75 |
| 21205 | 15.4% | +$854 | $114,156 | $1,980/mo | 2.41 |
| 21216 | 14.7% | +$805 | $116,646 | $1,940/mo | 2.30 |
| 21213 | 14.0% | +$768 | $120,932 | $1,930/mo | 2.19 |
| 21202 | 12.9% | +$1,004 | $185,611 | $2,750/mo | 2.02 |
| 21215 | 9.9% | +$476 | $164,184 | $1,930/mo | 1.54 |
| 21201 | 9.8% | +$649 | $224,861 | $2,640/mo | 1.54 |
| 21224 | 9.7% | +$658 | $239,449 | $2,770/mo | 1.52 |
| 21229 | 9.1% | +$392 | $176,734 | $1,930/mo | 1.42 |
| 21218 | 8.6% | +$352 | $192,366 | $2,010/mo | 1.34 |
| 21231 | 8.1% | +$412 | $295,371 | $2,930/mo | 1.26 |
| 21230 | 8.0% | +$371 | $275,889 | $2,720/mo | 1.25 |
| 21239 | 7.9% | +$278 | $219,103 | $2,140/mo | 1.24 |
| 21206 | 6.9% | +$90 | $225,076 | $1,960/mo | 1.08 |
| 21211 | 6.8% | +$89 | $288,506 | $2,480/mo | 1.06 |
| 21214 | 5.8% | -$132 | $258,047 | $1,960/mo | 0.90 |
| 21226 | 5.6% | -$198 | $316,497 | $2,360/mo | 0.88 |
| 21207 | 5.6% | -$187 | $289,317 | $2,150/mo | 0.88 |
| 20733 | 5.0% | -$520 | $448,283 | $3,050/mo | 0.78 |
| 21212 | 5.0% | -$400 | $341,664 | $2,320/mo | 0.78 |
| 21209 | 4.1% | -$849 | $449,667 | $2,660/mo | 0.65 |
| 21108 | 3.3% | -$1,592 | $614,639 | $3,110/mo | 0.51 |
| 21210 | 3.3% | -$1,269 | $486,398 | $2,450/mo | 0.51 |