Maryland Rental Portfolio Guide
What you need to know before building or growing a rental portfolio in Maryland — property tax burden, state income tax, security-deposit rule, source-of-income law, and the metros that actually cash-flow after accounting for local taxes.
Tax burden on Maryland rentals
Property tax
1.05%
effective rate on median home value
At 1.05% effective, the property tax burden is above the national median (rank 31 of 51). Bake the full annual tax bill into every underwrite; a 2% effective rate on a $400K home is $8,000 a year that has to come out of rent before mortgage.
State income tax
5.75%
top marginal rate
A top marginal rate of 5.75% is moderate. Portfolio income above the federal deduction stack still faces this rate on top of federal, so tax-optimized holding structures (installment sales, 1031s, cost-segregation) matter more here than in no-tax states.
Security deposit rule
State law caps security deposits at 2 months' rent. Charging above the cap exposes the landlord to statutory damages in most states, so build lease templates that respect this ceiling from day one.
Deposit rules change; verify current statute before drafting a lease.
Best cash-flow markets in Maryland
Modeled monthly cash flow on a median-priced single-family purchase at 20% down, 30-year fixed, using Maryland’s 1.05% effective property tax rate plus 25% of rent for insurance, maintenance, vacancy and management.
| Market | Median price | Median rent | Annual property tax | CF / month |
|---|---|---|---|---|
| Cumberland, MD | $168,978 | $1,038 | $1,774 | $-255 |
| Hagerstown, MD | $324,997 | $1,596 | $3,412 | $-791 |
| Baltimore, MD | $405,877 | $1,919 | $4,262 | $-1,044 |
| Salisbury, MD | $429,483 | $1,968 | $4,510 | $-1,152 |
| California, MD | $436,742 | $1,832 | $4,586 | $-1,298 |
| Easton, MD | $496,929 | $2,303 | $5,218 | $-1,313 |
State median across the metros: $417,680 home, $1,875 rent, $-1,098/mo modeled cash flow.
Track your Maryland rental portfolio
The Pro Portfolio Tracker rolls up every property in your portfolio, auto-revalues them monthly against local price data, and flags DSCR risk and equity milestones. Each Maryland property carries the state-specific tax burden shown above through to the cash flow calculation.
Property tax rate: Tax Foundation. Security deposit rule: state statute. Verify current law before making decisions — statutes change and this page is a planning reference, not legal or tax advice.