Baltimore City DSCR Loans: Financing the Rowhouse and BRRRR Market
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
Baltimore City is the low-basis end of Maryland investing: rowhouse prices that pencil for cash flow, a rehab economy with real incentives, and two traps, the tax gap and ground rent, that quietly separate the disciplined buyers from the surprised ones.
Can I get a DSCR loan in Baltimore City?
Yes: we lend on 1–4 unit rental property across the city, from Canton and Federal Hill to Hampden, Highlandtown, and the rehab blocks in between. The qualification is the property's rent against its full payment (PITIA), documented by the appraiser's rent schedule or your lease. Tax returns stay out of the file. The mechanics live in the Maryland DSCR guide; this page is the Baltimore layer. With typical values near $219,300 and apartment rents around $1,600–$1,652 (2026 compilations), Baltimore is where the rent-to-payment ratio clears 1.0 most easily in the state.
Why are Baltimore City property taxes so much higher than the county's?
Because the city's rate is structurally higher, and the recent cuts skip investors. Baltimore City taxes real property at $2.248 per $100 of assessed value for non-owner-occupied property. Baltimore County's flat rate is $1.10 per $100, under half. The Renew Baltimore plan is lowering the rate for owner-occupied homesteads only, so as the homeowner rate drifts down each year, the investor-versus-owner gap widens rather than closes. A worked example, labeled as such: on a rowhouse assessed at $200,000, the city bill runs about $4,496 a year, versus about $2,200 in Baltimore County. That difference lives inside your PITIA, so we underwrite the city rate, not a county one. The full picture is in Maryland rental property taxes.
Can I really buy a Baltimore house for $1?
Only under the Fixed Pricing Program, and it is not a rental play. The program requires proof of at least $90,000 in rehab funds, a criminal-history and lien screen, a commitment to move in within one year, and five years of owner-occupancy. Most listed parcels are shells or vacant lots, not livable structures, and city residents get a 90-day priority window. If you are buying to hold as a landlord, the $1 headline is the wrong door. Where the rehab economy does help investors: the Vacants to Value Booster ($10,000, five-year forgivable) supports a buyer purchasing a formerly vacant property, though it too requires primary-residence occupancy and a $1,000 minimum buyer contribution, which frames it as a flip-to-owner-occupant strategy rather than buy-and-hold.
The CHAP historic tax credit
The CHAP Historic Tax Credit is the incentive that pairs naturally with rowhouse rehab. It is a 10-year Baltimore City property-tax credit on the increase in assessed value produced by a qualifying historic rehabilitation, with a minimum investment of 25% of the property's full cash value. CHAP must approve the project before work begins, and the credit is transferable to a subsequent owner for its remaining term, which matters if you rehab and sell. Since the program launched in the 1990s, the city reports more than $1.3B invested across thousands of projects. A CHAP-eligible rowhouse rehab, financed with a DSCR takeout once it is rented, is one of the cleaner Baltimore strategies. Confirm eligibility with CHAP before you close, because the pre-approval timing is strict.
The ground-rent trap
Many Baltimore rowhouses carry a ground rent: you own the structure, a separate leaseholder owns the land, and there is a real, current trap around unregistered ground rents that the internet still gets wrong. It is important enough to have its own page: the Baltimore ground rent guide. Read it before you buy a rowhouse.
No pressure, no obligation, and no salesy follow-up: a 20-minute call with our team, real numbers, and a straight answer on whether the deal pencils.
Frequently asked questions
Can I really buy a house in Baltimore for $1?
Only under the Fixed Pricing Program, and it is not an investor vehicle. It requires proof of at least $90,000 in rehab funds, a criminal-history and lien screen, and a commitment to move in within one year and live there five years. Most parcels are shells or vacant lots. It is an owner-occupancy program, not a buy-and-hold rental play.
Why are Baltimore City property taxes higher than Baltimore County's?
Baltimore City taxes non-owner-occupied property at $2.248 per $100 of assessed value; Baltimore County's flat rate is $1.10, under half. The city's Renew Baltimore rate cut applies to owner-occupied homesteads only, so investor rentals keep paying the full city rate and the gap widens each year. We underwrite the city rate inside your PITIA.
Does the CHAP tax credit apply to a rental property in Baltimore?
Yes. The CHAP Historic Tax Credit is a 10-year Baltimore City property-tax credit on the increase in assessed value from a qualifying historic rehab, with a minimum investment of 25% of the property's full cash value. Both residential and rental projects can qualify, CHAP must approve before work starts, and the credit transfers to a later owner for its remaining term.
Can I get a DSCR loan in Baltimore City?
Yes: 1–4 unit rental property citywide. Typical structure is 20–25% down, credit floors around 620–660, and the property's rent-to-payment ratio does the qualifying, with title vested in your LLC at the closing table. Baltimore's low basis, with values near $219,300, is why the ratio clears 1.0 more readily here than elsewhere in Maryland.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. City and county STR rules, tax figures, rent-stabilization caps, and filing fees change; verify current requirements with the jurisdiction, your CPA, or a Maryland real estate attorney before you buy. Loans are subject to buyer and property qualification.