Maryland Rental Property ROI Calculator
Free Maryland rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Maryland's 1.09% property tax rate.
How This Calculator Works
Calculation methodology and assumptions
This calculator uses standard real estate investment analysis to determine the return on a rental property in Maryland. It factors in the mortgage payment (using a standard amortization formula), property taxes at Maryland's effective rate of 1.09%, insurance, vacancy loss, maintenance reserves, and property management fees. The cap rate is calculated as Net Operating Income divided by purchase price. Cash-on-cash return measures annual cash flow relative to total cash invested (down payment + estimated closing costs). The 10-year projection assumes 3% annual appreciation and 2% annual rent increases.
Key State Information
Maryland has an effective property tax rate of 1.09%, which is below the national average of 1.10%. Maryland has a progressive income tax up to 5.75% state income tax that applies to rental income.
Frequently Asked Questions
What is the average property tax rate in Maryland?
Maryland's effective property tax rate is 1.09%, which means on a $395,000 home, you'd pay approximately $4,306 per year in property taxes.
Is Maryland a good state for rental property investment?
Maryland offers a median home price of $395,000 with 2BR rents averaging $1550/month. Property tax rates are moderate. Use this calculator with your specific numbers to determine the actual ROI.
What is a good cap rate for rental property in Maryland?
A cap rate of 5-8% is generally considered good for rental properties. In Maryland, cap rates vary significantly by market. Urban areas tend to have lower cap rates (3-5%) but more consistent appreciation, while rural areas may offer higher cap rates (7-10%) with less growth potential.
How much do I need to invest in a rental property in Maryland?
For a median-priced home in Maryland ($395,000), a 20% down payment would be $79,000. Including estimated closing costs of $11,850, you'd need approximately $90,850 in cash.
Does Maryland have landlord-friendly laws?
Maryland has strong tenant protection laws, which can extend eviction timelines. Factor this into your vacancy rate estimates.
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