Cap Rate in Baltimore, MD

2026 Market Overview for Real Estate Investors

Avg Cap Rate

6.5%

#22 of 50 markets

Median Home Price

$180,000

Purchase price

Median Monthly Rent

$1,350

$16,200/yr gross

Rent-to-Price Ratio

0.75%

Moderate

Cap Rate Rating

Good

Strong return relative to market norms. Common in cash-flow-focused markets in the Midwest and South.

Market Snapshot

Population	576,498
5-Year Population Growth	-3.0%
Median Household Income	$52,000
Vacancy Rate	9.5%
Property Tax Rate	2.25%($4,050/yr)

Investor Takeaway

Baltimore offers high rent-to-price ratios close to DC, but population decline and high vacancy require neighborhood-level analysis. Canton, Federal Hill, and Hampden are investor favorites.

Quick Math

Estimated annual numbers for a median-priced property in Baltimore, MD before financing:

Annual Gross Rent$16,200

Less Vacancy (9.5%)($1,539)

Less Property Tax (2.25%)($4,050)

Less Est. Insurance + Maintenance($3,600)

Estimated NOI$7,011

Implied Cap Rate3.9%

Estimates based on median values. Insurance + maintenance estimated at 2% of home value. Actual results vary by property condition, neighborhood, and management.