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DSCR Loans in Maryland

Investment property loans that qualify on rent.

A DSCR loan in Maryland is an investment property mortgage that qualifies on the rent the property earns, not your personal income. HUD puts the 2 bedroom Fair Market Rent for the Columbia area (Baltimore metro) at $2,006 a month (HUD User). Pillar Mortgage Group (NMLS 2700076) arranges DSCR loans in Maryland up to $5 million.

Run my Maryland dealCheck your DSCR

Facts checked November 1, 2026. Not a commitment to lend.

Facts checked November 1, 2026

Key Maryland facts for rental investors

Pulled from state statutes, state agencies, the Census Bureau and FRED. Each row links to its source.

Maryland factValueSource
Security instrumentDeed of trust or mortgage; statute addresses bothmgaleg.maryland.gov
Transfer and recording taxesState transfer tax 0.5% of consideration (0.25% for qualifying first time Maryland homebuyers, paid by seller)Md. Code, Tax Prop. 13-203
Security deposit1 month's rent per unit (2 months in limited utility assistance cases)Md. Code, Real Prop. 8-203(b)
Notice for unpaid rentWritten notice of intent to file giving the tenant 10 days to cure before a failure to pay rent complaint may be filedMd. Code, Real Prop. 8-401(c)
LLC formation fee$100dat.maryland.gov
Median listing price$425,000 in September 2026 ($442,500 in September 2025)Realtor.com via FRED
HUD 2 bedroom Fair Market Rent$2,006, The Columbia area (Baltimore metro)HUD User
The definition

What is a DSCR loan, and how does it work in Maryland?

DSCR is monthly rent divided by PITIA (principal, interest, taxes, insurance and HOA). Take the HUD 2 bedroom Fair Market Rent for the Columbia area (Baltimore metro), $2,006: that rent carries a $2,006 payment at 1.00, or $4,012 at 0.50.

Full walk through: how DSCR is calculated.

Where PMG is different

Where PMG is different in Maryland

The guidelines that set our Maryland DSCR loans apart.

  • First time buyers: allowed, no VOR
  • Cash out: no seasoning
  • Reserves: none under $1M, 75% LTV
  • Assets: no sourcing
  • Gift funds: 100%
  • ADUs: multiple
  • Foreign nationals: 70% / 60% LTV
  • DSCR: from 0.50
  • Interest only: 70% / 65% LTV

Loan amount

Up to $5M

Credit

660 and up

Down

20 to 25%

Vesting

LLC ok

Guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend. Compare with typical DSCR programs.

Maryland rental market

Maryland rental market snapshot

These public benchmarks show where Maryland rents and prices sit right now.

HUD Fair Market Rent, 2 bedroom

$2,006

The Columbia area (Baltimore metro) (FY2027)

HUD User

HUD Fair Market Rent, 2 bedroom

$2,438

The Washington metro (FY2027)

HUD User

Median listing price

$425,000

September 2026, down 4.0% from $442,500 in September 2025

Realtor.com via FRED

Quick math (computed from the figures above): Using the Maryland median listing price, $425,000, a 25% down payment is $106,250 and the loan is $318,750. A year of rent at the Fair Market Rent for the Columbia area (Baltimore metro) ($2,006) is $24,072, or 5.7% of that price. A year of rent at the Fair Market Rent for the Washington metro ($2,438) is $29,256, or 6.9% of that price.

Fair Market Rent is a HUD benchmark, not an appraisal.

Calculator

Check your Maryland DSCR in seconds

The rent field starts at the HUD 2 bedroom Fair Market Rent for the Columbia area (Baltimore metro). HUD also lists the Columbia area (Baltimore metro) at $2,006 and the Washington metro at $2,438. Swap in your lease or appraisal rent, then add your quoted rate. For a price reference, the median Maryland listing was $425,000 in September 2026.

Maryland DSCR Calculator

See how a rental's income stacks up against its full monthly payment. Your numbers stay in your browser.

Income
Example: HUD 2 bedroom Fair Market Rent for the Columbia area (Baltimore metro). Replace it with your rent.
Loan
Expenses
Leave blank if there is no HOA.

Your DSCR results

Enter rent, price and your quoted rate to see your DSCR.

Formula used

Loan amount (L) = Price × (100 minus Down %) ÷ 100

P&I (30 year fixed) = L × r × (1 + r)^360 ÷ ((1 + r)^360 minus 1), where r = annual rate ÷ 100 ÷ 12

P&I (40 year interest only) = L × r

PITIA = P&I + Tax ÷ 12 + Insurance ÷ 12 + HOA

DSCR = Monthly rent ÷ PITIA

Rent needed for a target DSCR = Target × PITIA

Talk through your numbers with us

Estimates only. Not a loan offer. Rates and terms vary by lender, property and borrower. Company NMLS #2700076. Example values are illustrations, not a quote.

The math

DSCR worked examples for Maryland

Hypothetical PITIA of $1,775 (P&I $1,400, taxes $250, insurance $125), real Maryland rents. Not a quote or a rate.

The Columbia area (Baltimore metro)

HUD FY2027 2 bedroom Fair Market Rent (source)
$2,006
Hypothetical PITIA
$1,775

1.13DSCR

$2,006 / $1,775 = 1.13: covers the full payment.

The Washington metro

HUD FY2027 2 bedroom Fair Market Rent (source)
$2,438
Hypothetical PITIA
$1,775

1.37DSCR

$2,438 / $1,775 = 1.37: covers the full payment.

Talk to us

Have a Maryland rental in mind? Run it with us.

A two minute form gets the property in front of our team. You get a straight answer on the ratio and the structure.

Investors from any state can buy in Maryland.

See If My Maryland Deal Qualifies

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Your information is never sold or shared. By submitting you authorize Pillar Mortgage Group LLC to contact you by phone, text, or email. Equal Housing Lender.

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Top markets

Maryland metros and local rental rules

Where Maryland investors are buying, and the local rules that apply to rentals there.

Baltimore

$2,006

HUD 2 bedroom Fair Market Rent, the Columbia area (Baltimore metro) (HUD)

Columbia

$2,006

HUD 2 bedroom Fair Market Rent, the Columbia area (Baltimore metro) (HUD)

Short term rental rules in Baltimore

  • Baltimore: Baltimore City: all STRs (stays under 90 nights) must be licensed. New licenses require the property to be the host's principal residence and deeded to an individual, not a company. No new licenses are being issued for unhosted units. Only existing unhosted licensees may renew. Investors should assume a non owner occupied STR is not licensable in Baltimore City. Baltimore City Code Art. 15, Subtitle 48 (baltimorecity.gov)

City rules change. Confirm with the city and your HOA before you buy, and ask us how your lender counts short term rental income.

Landlord and tenant law

Leases, deposits and notices in Maryland

A DSCR loan underwrites the rent, so the rules that govern collecting it matter. Here is what Maryland law says, with the statute for each.

TopicThe ruleCitation
Security deposit cap1 month's rent per unit (2 months in limited utility assistance cases)Md. Code, Real Prop. 8-203(b)
Deposit return deadline45 days after end of tenancyMd. Code, Real Prop. 8-203(e)(1)
Notice nonpaymentWritten notice of intent to file giving the tenant 10 days to cure before a failure to pay rent complaint may be filedMd. Code, Real Prop. 8-401(c)
Notice end month to month60 days written notice by landlord (30 day exception only in a narrow foreclosure situation, not available in Baltimore City, Montgomery County or to landlords with 5 or more units).Md. Code, Real Prop. 8-402(c)

Not legal advice.

Property taxes

Maryland property taxes on a rental

Every dollar of tax raises the payment the rent has to cover. Here is how Maryland assesses and taxes property.

  • Assessment: Property is valued at fair market value by the State Department of Assessments and Taxation (SDAT) and reassessed once every three years, one third of properties each year. Increases are phased in evenly over the three years. (dat.maryland.gov)
  • Caps homestead: Homestead Tax Credit limits taxable assessment increases on an owner occupied principal residence to 10% or less per year (local governments may set 0% to 10%). A rental or investment property does not qualify because it is not the owner's principal residence. (dat.maryland.gov)
  • Rates: Rates are set separately by the state, each county and each municipality; the state sets no limit on local rates. (dat.maryland.gov)
Closing and foreclosure

Closing a rental in Maryland: deeds, foreclosure and taxes

What to expect at the closing table in Maryland, from the instrument you sign to the taxes on transfer.

  • Security instrument: Deed of trust or mortgage; statute addresses both (mgaleg.maryland.gov)
  • Transfer taxes: State transfer tax 0.5% of consideration (0.25% for qualifying first time Maryland homebuyers, paid by seller). Counties levy their own transfer and recordation taxes at varying rates. County rates not collected. Md. Code, Tax Prop. 13-203 (mgaleg.maryland.gov)
LLC and vesting

Closing in an LLC in Maryland

What it costs to form and keep an LLC in good standing with the Maryland Secretary of State.

Local angle

What makes Maryland different for rental investors

  • Maryland splits into two very different rental economies: Baltimore and its suburbs, and the Montgomery and Prince George's County suburbs tied to the federal job base around Washington DC. Investors need to watch county level rules closely, since Montgomery County runs its own rent stabilization program and Baltimore City restricts short term rentals to owner occupied homes.
Before you offer

Maryland investor checklist

Check each of these on any Maryland rental you plan to finance.

  • Security deposit: 1 month's rent per unit (2 months in limited utility assistance cases) (Md. Code, Real Prop. 8-203(b))
  • Unpaid rent notice: Written notice of intent to file giving the tenant 10 days to cure before a failure to pay rent complaint may be filed (Md. Code, Real Prop. 8-401(c))
  • Ending a month to month lease: 60 days written notice by landlord (30 day exception only in a narrow foreclosure situation, not available in Baltimore City, Montgomery County or to landlords with 5 or more units) (Md. Code, Real Prop. 8-402(c))
  • Tax basis: Property is valued at fair market value by the State Department of Assessments and Taxation (SDAT) and reassessed once every three years, one third of properties each year (dat.maryland.gov)
  • Security instrument: Deed of trust or mortgage; statute addresses both (mgaleg.maryland.gov)
  • Transfer and recording taxes: State transfer tax 0.5% of consideration (0.25% for qualifying first time Maryland homebuyers, paid by seller) (Md. Code, Tax Prop. 13-203)
  • LLC formation: $100 (dat.maryland.gov)
  • LLC upkeep: $300 (dat.maryland.gov)
  • Short term rental, Baltimore: Baltimore City: all STRs (stays under 90 nights) must be licensed (baltimorecity.gov)
Step by step

Five steps to a Maryland DSCR loan

  1. Send the Maryland deal
  2. We run the DSCR
  3. We shop lenders
  4. Appraisal confirms rent
  5. Close in your name or LLC

Documents: contract, lease or rent schedule, bank statements, LLC papers, insurance quote. No tax returns. Details.

35 states and counting

DSCR loans across the country

Maryland is highlighted. We also lend DSCR in Pennsylvania, Delaware and West Virginia next door, and in 30 more states. Tap a gold state to open its guide.

DSCR loans in AlabamaDSCR loans in AlaskaDSCR loans in ArizonaDSCR loans in ArkansasDSCR loans in ColoradoDSCR loans in ConnecticutDSCR loans in DelawareDSCR loans in GeorgiaDSCR loans in HawaiiDSCR loans in IndianaDSCR loans in IowaDSCR loans in KansasDSCR loans in KentuckyDSCR loans in LouisianaDSCR loans in MaineDSCR loans in Maryland (this page)DSCR loans in MassachusettsDSCR loans in MichiganDSCR loans in MississippiDSCR loans in MissouriDSCR loans in MontanaDSCR loans in New HampshireDSCR loans in New MexicoDSCR loans in North CarolinaDSCR loans in OhioDSCR loans in OklahomaDSCR loans in PennsylvaniaDSCR loans in Rhode IslandDSCR loans in South CarolinaDSCR loans in TennesseeDSCR loans in TexasDSCR loans in WashingtonDSCR loans in West VirginiaDSCR loans in WisconsinDSCR loans in Wyoming
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Map geometry: US Census Bureau cartographic boundary files.

FAQ

Maryland DSCR loan questions

Straight answers for investors buying or refinancing rentals in Maryland.

PMG guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend.

Book a free call

Does Pillar Mortgage Group offer DSCR loans in Maryland?

Yes. Purchases, rate and term and cash out refinances on Maryland rentals, up to $5 million, in your name or an LLC. That includes Baltimore, Columbia, Silver Spring and Montgomery County suburbs of Washington DC and Frederick.

What rent can I use for a Maryland DSCR loan?

The lease or the appraiser's market rent. As a benchmark, HUD puts the 2 bedroom Fair Market Rent for the Columbia area (Baltimore metro) at $2,006 a month.

How much security deposit can a Maryland landlord take?

1 month's rent per unit (2 months in limited utility assistance cases). (Md. Code, Real Prop. 8-203(b))

How does a Maryland landlord start the process for unpaid rent?

Written notice of intent to file giving the tenant 10 days to cure before a failure to pay rent complaint may be filed. (Md. Code, Real Prop. 8-401(c))

How do you end a month to month lease in Maryland?

60 days written notice by landlord (30 day exception only in a narrow foreclosure situation, not available in Baltimore City, Montgomery County or to landlords with 5 or more units). (Md. Code, Real Prop. 8-402(c))

How is a rental property taxed in Maryland?

Property is valued at fair market value by the State Department of Assessments and Taxation (SDAT) and reassessed once every three years, one third of properties each year. Increases are phased in evenly over the three years.

How does foreclosure work in Maryland?

Maryland closes on a deed of trust. Deed of trust or mortgage; statute addresses both.

Does Maryland charge a transfer tax when I buy a rental?

State transfer tax 0.5% of consideration (0.25% for qualifying first time Maryland homebuyers, paid by seller). Counties levy their own transfer and recordation taxes at varying rates. County rates not collected. (Md. Code, Tax Prop. 13-203)

What does a Maryland LLC cost?

Yes, PMG DSCR loans can close in an LLC. $100. Articles of Organization; optional $50 expedited fee. $300.

Can I use a DSCR loan for a short term rental in Baltimore?

Often, yes, with stricter income documentation. Local rule: Baltimore City: all STRs (stays under 90 nights) must be licensed. New licenses require the property to be the host's principal residence and deeded to an individual, not a company. No new licenses are being issued for unhosted units. Only existing unhosted licensees may renew. Investors should assume a non owner occupied STR is not licensable in Baltimore City. (Baltimore City Code Art. 15, Subtitle 48)
Nearby states

DSCR loans in nearby states

Investing across state lines? We lend DSCR in these neighbors of Maryland too.

Sources and review dates

Primary sources, each with the date checked. PMG program facts come from Pillar Mortgage Group.

  1. HUD FY2027 Fair Market Rent, Baltimore, Columbia, Towson, MD MSA: https://www.huduser.gov/datasets/fmr/fmr2027/summary?counties=2451099999&reporttype=county&states=24&year=2027&sa_override=1
  2. Md. Real Prop. 7-105.1: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp&section=7-105.1&enactments=false (checked 2026-11-01)
  3. Md. Tax Prop. 13-203: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp&section=13-203&enactments=false (checked 2026-11-01)
  4. Md. Real Prop. 8-203: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp&section=8-203&enactments=false (checked 2026-11-01)
  5. Md. Real Prop. 8-401: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp&section=8-401&enactments=false (checked 2026-11-01)
  6. SDAT fee schedule: https://dat.maryland.gov/businesses/documents/fees.pdf (checked 2026-11-01)
  7. Realtor.com via FRED: https://fred.stlouisfed.org/series/MEDLISPRIMD
  8. HUD FY2027 Fair Market Rent, Washington, Arlington, Alexandria, DC, VA, MD HUD Metro FMR Area: https://www.huduser.gov/datasets/fmr/fmr2027/summary?counties=2403199999&reporttype=county&states=24&year=2027&sa_override=1
  9. Baltimore City DHCD STR: https://www.baltimorecity.gov/dhcd/our-work/permit-inspections/property-registration/short-term-rentals (checked 2026-11-01)
  10. Md. Real Prop. 8-402: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp&section=8-402&enactments=false (checked 2026-11-01)
  11. SDAT Homeowner's Guide: https://dat.maryland.gov/realproperty/pages/HomeOwners-Guide.aspx (checked 2026-11-01)
  12. SDAT Form 1 instructions 2023: https://dat.maryland.gov/SDAT%20Forms/PPR_Forms/Form1_Instructions_2023.pdf (checked 2026-11-01)
Maryland investors

Let the rent do the qualifying.

Send the Maryland property and rent. We run the ratio and lay out terms before you offer.

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Run My Maryland DSCR Numbers

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Your information is never sold or shared. By submitting you authorize Pillar Mortgage Group LLC to contact you by phone, text, or email. Equal Housing Lender.

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Got it.

We will reach out shortly to run your numbers.

Pillar Mortgage Group, LLC is an Equal Housing Lender, doing business in accordance with the Fair Housing Act and Equal Credit Opportunity Act. Not a commitment to lend.
Company NMLS# 2700076  |  Arizona License MB-2009671  |  View NMLS Consumer Access