DSCR Loans in Maryland

A lot. The statewide effective rate is about 0.92%, per the Tax Foundation's 2026 figures, but Baltimore City's rate runs well above the suburban counties, and counties set their own local rates on top of the state levy. Owner-occupants also get the Homestead Tax Credit, which limits how fast their assessments can rise, and a rental does not. That means a long-held home's bill can jump after you buy it. Your specialist should price the post-purchase bill for that county.

It depends heavily on the county and the town. Ocean City and the Eastern Shore have the strongest seasonal demand, with local licensing rules. Montgomery County allows short-term rentals mainly in the host's primary residence, and Baltimore City requires a license. Many townhome and condo associations prohibit short stays entirely. Check the rule for the exact address, and remember a lender will only count short-term income the local rules actually allow.

It counts against you, but it can still be the better deal. DSCR lenders add the monthly HOA dues to principal, interest, taxes, and insurance when they measure the ratio, so a $95 fee reduces the result the same way $95 of tax would. What you get back is often a lower price than a detached house in the same area, shared upkeep of common areas, and steady demand from tenants who want a newer home. Read the association's rental rules and budget before you commit.