Rental property in Baltimore, MD
2026 Market Data & Investment Analysis
Gross Yield
6.9%
Annual rent / price
Median Home Price
$225,000
As of 2026-Q1
Median Monthly Rent
$1,300
Per month
Population
585,708
-0.7% / yr (5y avg)
Estimates based on median market data. Actual returns depend on your specific property. Source: Zillow Research / U.S. Census Bureau, 2026-Q1.
Calculate your rental yield in Baltimore
Pre-filled with Baltimore's median values. Adjust to match your specific property.
Property Details
Total acquisition cost before taxes
HOA, insurance, property management
% of time the property is empty
% of purchase price (e.g. 2% = 2)
Rule of thumb: 1% of purchase price/yr
Results
Gross Rental Yield
6.93%
Net Rental Yield
4.52%
Cap Rate
4.52%
Monthly Cash Flow
$847.50
Annual Cash Flow
$10,170.00
Baltimore rental market at a glance
Median Home Price — 5-Year Trend
Median Monthly Rent — 5-Year Trend
Baltimore presents a compelling value-play rental market characterized by a 6.9% gross yield—significantly above the national average of 4-5%—driven by the substantial gap between affordable purchase prices ($225,000 median) and consistent rental demand ($1,300/month). This yield advantage is anchored by the city's position as a major East Coast employment hub, with Johns Hopkins University and Hospital serving as the largest employer, generating persistent demand from graduate students, medical professionals, and institutional staff. The Port of Baltimore, despite recent operational challenges, continues to drive logistics and maritime industry employment, while the growing biotech corridor in West Baltimore (anchored by the life sciences cluster) attracts younger professionals seeking affordable urban living relative to comparable markets like Boston or Washington D.C.
Demand drivers remain resilient despite the concerning -0.7% annual population decline over five years, as this reflects suburban outmigration patterns typical of legacy industrial cities rather than absolute economic weakness. The 8.1% vacancy rate, while elevated compared to sub-5% markets, is manageable and suggests selective tenant quality improvement opportunities—investors willing to perform renovations can command premium rents in revitalized neighborhoods like Canton, Federal Hill, and Fells Point, where young professionals and Hopkins employees concentrate. The city's relatively young median age (36 years) and growing Hispanic population (19% and climbing) create sustained rental demand for both market-rate and workforce housing segments.
The outlook depends critically on momentum in three areas: the ongoing $6 billion Harbor Point development and waterfront revitalization projects should continue attracting white-collar tenants; Johns Hopkins' expansion plans and its commitment to hiring locally provide institutional anchoring; and the state's push to expand the Harbor Point tax incentive zone could catalyze further investment. However, persistent structural challenges—aging infrastructure, property crime concentration in certain corridors, and Baltimore's reputation relative to Philadelphia or Washington D.C.—create a bifurcated market where geography is destiny and tenant quality varies dramatically by micromarket.
What type of investment market is Baltimore?
Baltimore is a cash flow-focused market where high rental yields can generate strong monthly income. Lower population growth means price appreciation may be limited, making this primarily an income play.
✓ Strengths
- •Exceptional 6.9% gross rental yield significantly outperforms most US markets, with entry prices 30-40% below comparable East Coast metros
- •Anchor institutional demand from Johns Hopkins University/Hospital (55,000+ employees) and growing biotech sector creates predictable, professional tenant base with stable income
- •Waterfront revitalization projects and Harbor Point Tax Increment Financing district attracting both institutional capital and young professionals, creating appreciation potential in transit-accessible neighborhoods
- •Abundant inventory of pre-1920 rowhouse stock available at discounted prices offers renovation arbitrage opportunities for value-add investors in improving neighborhoods
! Risks
- •Population decline of -0.7% annually signals long-term structural headwinds that may limit appreciation upside and create downward rent pressure if trend accelerates
- •8.1% vacancy rate reveals softer demand than headline yields suggest; concentrations in weaker neighborhoods could indicate declining rental fundamentals in non-institutional areas
- •Severe spatial clustering of violent crime in specific corridors creates significant tenant screening challenges, insurance cost impacts, and maintenance risk concentration that high yields may not adequately compensate for
- •Heavy dependence on Johns Hopkins for workforce stabilization leaves market vulnerable to any institutional employment contraction, given limited diversification into other major employers relative to comparable metros
Key Metrics
How does Baltimore compare to nearby cities?
Baltimore vs Philadelphia: 0.5 percentage point difference in gross yield.
| City | Median Price | Median Rent | Gross Yield | Pop. Growth |
|---|---|---|---|---|
| Philadelphia, PA | $220,000 | $1,350 | 7.4% | -0.3% |
| New York, NY | $700,000 | $2,800 | 4.8% | -0.6% |
| Richmond, VA | $310,000 | $1,550 | 6% | +0.7% |
| Pittsburgh, PA | $180,000 | $1,200 | 8% | -0.3% |
| Hartford, CT | $250,000 | $1,350 | 6.5% | -0.5% |
Investor Takeaway
Baltimore is ideally suited for experienced value-add investors with patient capital and strong local market knowledge seeking to exploit the yield-price arbitrage in institutional-adjacent neighborhoods (Canton, Fells Point, Hampden). The optimal strategy combines careful geographic selectivity focused on Hopkins employee corridors and waterfront revitalization zones, renovation-driven value creation to justify premium rents, and institutional tenant preference (graduate students, medical professionals). However, investors must rigorously avoid the 40% of the city experiencing population and rental decline; success requires block-by-block due diligence rather than broad neighborhood plays. Watch closely for any deterioration in Johns Hopkins hiring or expansion plans—this single institution's strength is carrying the entire market's fundamentals.
Common questions about investing in Baltimore
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How does Baltimore compare to Philadelphia for investors?▾
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