7 Maryland cities ranked by estimated cap rate. The average cap rate across Maryland markets is 3.6%, with median home prices averaging $394K and rents averaging $1,833/mo. Cumberland leads with a 5.4% cap rate at a $160K median price. Property taxes average 1.04% across Maryland markets.
Maryland offers 7 investable rental markets tracked by CapRateCity. The state average cap rate of 3.6% is near the 3.81% national average. No cities pass the 1% rule at median prices, so value-add strategies are essential.
Prices and rents: Maryland home prices average $394K, which is 18% above the national average of $333K. Rents average $1,833/mo.
Taxes and costs: Property taxes average 1.04% across Maryland, below the 1.08% national average — a meaningful cash flow advantage that adds roughly $157 per year to NOI on an average-priced property. Frederick has the lowest rate at 1.02%.Vacancy averages 5.8%, in line with national norms.
Growth outlook: Population growth across Maryland averages 0.50% per year, led by Frederick at 1.2%. Home values are appreciating at 2.6% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: Maryland is primarily an appreciation market. Cash flow investing requires below-median purchases or value-add strategies. Consider whether the growth and appreciation potential justifies tighter margins.