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Best Places to Buy Rental Property in Maryland: Top areas to Airbnb near Baltimore

best places to buy rental property in maryland

Key Takeaways

♦ Baltimore is an STR-friendly city with economic stability and a tourist market that has helped plenty of hosts in the city to earn a good rental income.

♦ Learn about the advantages real estate investors can expect when investing in a rental property in Baltimore and nearby areas. 

♦ Get to know the top 10 areas for Airbnb investments nearby Baltimore along with their respective Airbnb data and recommended property types.

Introduction

Baltimore, also known as the Charm City, is located on the East Coast and lies at the head of the Patapsco River. This port city is the largest city in Maryland state and is also its economic center.

Baltimore is a charming city with a rich history, stunning sea views, and lively culture that can easily make anyone fall in love with it. From a fascinating inner harbor to historical buildings and bustling streets, this city is easily a catchy destination. 

Baltimore perfectly blends its historical areas with modern architecture that provides a beautiful environment. Yet, you may be wondering, which areas or nearby cities in Baltimore should you target to start an Airbnb property investment?

In this article, we feature the best places to buy a rental property in Baltimore, Maryland and the expectations you should have for Airbnb investments here. Continue reading to learn more.

Pros of buying rental property in Baltimore

Investing in real estate in Baltimore can become a great way of earning a nice passive income that will allow you to achieve financial freedom. The city is filled with cultural attractions, sports events, and a lively music & art scene. Thus, Baltimore opens the doors to interesting investment opportunities. 

However, what kind of advantages does the Charm City offer to real estate investors? Check out some of the major benefits that Baltimore offers:

Real estate market affordability

Housing market affordability is one of the major factors that investors usually consider when choosing the right location to invest in a property. Baltimore is an affordable metro area where the average property price is $195K and the median sold price is $187K as confirmed by Realtor.

STR-Friendly City

Becoming an Airbnb host after buying a rental property is a great idea, but first, it’s always important to consider the local laws and regulations of your preferred area. Luckily, Baltimore is one of the top 10 STR-friendliest cities in the US, so if you want to start an Airbnb business here, you will have the great advantage of facing fewer requirements and smother regulations.

Plenty of things to do

The Charm City offers a dozen of top-tier attractions to explore and exciting leisure activities throughout the area. From top-notch museums to an excellent cultural & arts scene, chic boutiques and green recreation areas, there are many fascinating options to choose from. 

So if you ever aim to cater to tourist accommodations in Baltimore, then you will be interested to know that it welcomed around 24M tourist arrivals in 2021 which contributed a total of $2.7 billion to the city’s economy. 

Minimal risk of natural hazards

Baltimore has a great location on the East Coast, which allows the city to offer temperate climate conditions during the four seasons. Thanks to this, it’s easy to enjoy any type of activity throughout the year.

Furthermore, Baltimore is not prone to natural disasters such as wildfires and earthquakes according to Dwellics. Having said that, on some occasions they can experience some Pacific storms.

Is Airbnb Profitable in Baltimore?

Worried that your real estate investment in Baltimore won’t be lucrative? Be at ease, Airbtics confirms that Airbnb Investment Properties in Baltimore are indeed profitable. 

In fact, Baltimore is one of the US cities where an average Airbnb host can earn up to $2,000 monthly revenue. Albeit, it should be noted that the level of profitability always depends on your property type and specific location.

According to Airbtics’ data, an Airbnb host can expect an occupancy rate of 61% and an average daily rate of $196 for operating a 3-bedroom property in Baltimore, Maryland.

best places to buy rental property in maryland

Top 10 Most Profitable Areas for Airbnb nearby Baltimore

Baltimore is the most populous city in the state of Maryland, being home to more than 200 neighborhoods, thus, you may wonder – where should I invest in Airbnb in Baltimore? 

Let us lend you a hand! Check out the best neighborhoods and nearby cities in Baltimore, MD that are recommended for property investment:

1. Pigtown, Baltimore
  • Total Number of Airbnb Listings: 52
  • Best bedroom size: 3 bedrooms
  • Median property price (3 bedrooms): $252,000
  • Airbnb Annual revenue: $47,325
  • Gross rental yield: 18.54%
2. Fells Point, Baltimore
  • Total Number of Airbnb Listings: 58
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): $325,000
  • Airbnb Annual revenue: $58,185
  • Gross rental yield: 17.90%
3. Canton, Baltimore
  • Total Number of Airbnb Listings: 57
  • Best bedroom size: 4 bedrooms
  • Median property price (4 bedrooms): $489,900
  • Airbnb Annual revenue: $86,939
  • Gross rental yield: 17.75%
4. Downtown Baltimore
  • Total Number of Airbnb Listings: 222
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): $169,900
  • Airbnb Annual revenue: $32,292
  • Gross rental yield: 15.88%
5. Riverside, Baltimore
  • Total Number of Airbnb Listings: 32
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): $250,000
  • Airbnb Annual revenue: $38,912
  • Gross rental yield: 15.56%
6. Columbia, MD

 

  • Distance from Baltimore: 20 miles 
  • Total Number of Airbnb Listings: 38
  • Best bedroom size: 3 bedrooms
  • Median property price (3 bedrooms): $325,000
  • Airbnb Annual revenue: $62,678
  • Gross rental yield: 19.29%
7. Annapolis, MD
  • Distance from Baltimore: 33 miles
  • Total Number of Airbnb Listings: 313
  • Best bedroom size: 2 bedrooms
  • Median property price (2 bedrooms): $399,900
  • Airbnb Annual revenue: $89,081
  • Gross rental yield: 17.47%
8. Silver Spring, MD
  • Distance from Baltimore: 34 miles
  • Total Number of Airbnb Listings: 133
  • Best bedroom size: 3 bedrooms
  • Median property price (3 bedrooms): $420,000
  • Airbnb Annual revenue: $64,336
  • Gross rental yield: 15.32%
9. Washington DC
  • Distance from Baltimore: 34 miles
  • Total Number of Airbnb Listings: 3,511
  • Best bedroom size: 3 bedrooms
  • Median property price (3 bedrooms): $765,000
  • Airbnb Annual revenue: $87,632
  • Gross rental yield: 11.46%
10. Ocean City, MD
  • Distance from Baltimore: 103 miles
  • Total Number of Airbnb Listings: 2,359
  • Best bedroom size: 3 bedrooms
  • Median property price (3 bedrooms): $539,000
  • Airbnb Annual revenue: $62,678
  • Gross rental yield: 11.63%

Takeaway

Nearby cities and neighborhoods in Baltimore offer a variety of property options and also great investment opportunities to real estate investors. With plenty of profitable areas that can generate a good rental income, Baltimore is a catch for investors and hosts. However, we advise you to always analyze your options carefully.

Investors like you can earn a nice income if they target one of the best places to buy a rental property around Baltimore, Maryland. But don’t stop there and go further in your journey by checking out our free Airbnb calculator. Choose to surpass your competitors while maximizing your profitability now!

Explore The Most Profitable Airbnb Locations Near Baltimore

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Airbnb Investment All About Airbnb

Is Baltimore, Maryland Profitable for Airbnb Property Investment?

airbnb property investment Baltimore

Are you looking for a creative city with massive historical and artistic influence? Baltimore’s the answer! Known for the best crabcakes and seafood restaurants, this city also has plenty to offer aside from its cuisines such as its business industry which attracts tourists and young professionals. 

It’s highly recommended to learn about buying a property for Airbnb in order to make sure that it’s profitable. To begin with, it’s certainly important to consider the major costs and revenue before deciding to purchase a property in Baltimore. Another excellent option is to do rental arbitrage in Baltimore as it’s fairly popular and does not require you to purchase a property.

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A couple of years ago, Attom Data Solutions ranked Baltimore as the 4th best market for the growth in single-family rental yield. Today, Baltimore is still listed as one of the best places to buy rental property for cash flow and appreciation.

– Roofstock’s Insights on Baltimore Renters’ Market

Aside from looking at a property’s fascinating architectural design, proximity to major tourist areas, and accessibility to the best go-to places, the primary step is to determine profitability. In this article, we’ll discuss the metrics in order to gauge the best property investment.

This includes the best website recommendations for property investment in Baltimore, property gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location. Stoked to learn more? Continue reading!

Why Should You Consider Buying An Airbnb in Baltimore?

Some of the attractive features that Baltimore, the “Charm City”, has to offer include streets full of culture and fun where both locals and visitors can admire its music and arts scene, fascinating sports events and vibrant nightlife!  Aside from the fact that Baltimore is one of the most affordable cities on the East Coast, it’s certainly perfect for a property investor who wants to enjoy these rewards while earning a passive income through Airbnb. Not yet convinced? Here are some of the major reasons why you should consider buying a property for Airbnb in Baltimore:

1. Highly affordable market

Real estate affordability is one of the major determining factors when choosing a location to invest in a property. The great news is that Baltimore’s housing values are fairly lower than other cities in Maryland. Based on Zillow Index, the average property price here is $209K, trending up 9.4% year-over-year.

2. Popular tourist destination

It’s a given fact that Baltimore is a vibrant city located on the East Coast that has a rich history, iconic restaurants, shops and great attractions where you will never get bored. Of course, travelers love the city’s environment, in fact, only in 2021, it welcomed around 24M visitors according to Visit Baltimore portal.

3. Low risk of natural disasters

Property investors will usually worry about one thing: Are natural disasters likely to occur in the area and destroy my property? Property investment does not only require effort and money but also precious time. The good news is that in Baltimore, there is a low risk of natural disasters such as hurricanes, wildfires and earthquakes as confirmed by Dwellics. 

What are the cons of buying an Airbnb property in Baltimore?

Now that we know the advantages of investing in Baltimore, let’s move on and take a quick look at the cons. It’s always better to look at the two sides of each coin in order to properly set your expectations!

1. Highest taxes in the State

Baltimore is a politically independent city, for this reason, income taxes are higher compared to other cities in the county. On top of that, property taxes are one of the highest in Maryland, being an average of 0.98%

2. The crime rate can be alarming

One of the biggest downsides of Baltimore is that it experiences high levels of crime rate, which is 62.41 crimes per 1,000 residents. Safety can be a great concern in this city, so it’s better to avoid bad neighborhoods like Berea Area, Cherry Hill and those located around West Baltimore.

Best Neighborhoods for Airbnb in Baltimore

Let’s take a closer look at the important Airbnb key metrics to discover which is the most profitable neighborhood in Baltimore. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods:

1. Fells Point
  • Annual Revenue: $42,883
  • Occupancy Rate: 71%
  • Average Daily Rate: $149
2. Hollins Market
  • Annual Revenue: $19,441
  • Occupancy Rate: 60%
  • Average Daily Rate: $66
3. Riverside
  • Annual Revenue: $29,425
  • Occupancy Rate: 59%
  • Average Daily Rate: $107

airbnb property investment Baltimore

Is Property Investment Profitable in Baltimore?

Using a short-term rental income calculator, it was discovered that a 3-bedroom apartment in Baltimore City Centre can generate an annual revenue of $51,927 with a steady occupancy rate of 64% and a nightly rate of $219.

airbnb property investment Baltimore

airbnb property investment Baltimore

City Homes and Houses For Sale in Baltimore City Centre

Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage. 

At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Here are some of the profitable properties in Baltimore City Centre along with the calculated gross rental yield, cash-on-cash return, and annual revenue:

airbnb property investment Baltimore
airbnb property investment Baltimore

712 N Carrollton Ave, Baltimore, MD 21217

1. Studio-type Property for Sale Baltimore
  • Minutes to multiple subway and MARC stations.
  • Asking Price: $72,000
GROSS RENTAL YIELD 25.69%
ANNUAL REVENUE $18,497
CASH ON CASH RETURN 51.30%
airbnb property investment Baltimore
airbnb property investment Baltimore

1232 W Pratt St, Baltimore, MD 21223

2. 1-Bedroom Type Property for Sale Baltimore
  • 2.5 miles to Bay-Brook Elementary School
  • Asking Price: $74,900
GROSS RENTAL YIELD 21.36%
ANNUAL REVENUE $16,000
CASH ON CASH RETURN 38.32%
airbnb property investment Baltimore
airbnb property investment Baltimore

4413 Falls Bridge Dr Unit J, Baltimore, MD 21211

3. 2-Bedroom Type Property for Sale Baltimore
  • 0.2 miles Medfield Heights Elementary School 
  • Asking Price: $99,000
GROSS RENTAL YIELD 25.24%
ANNUAL REVENUE $24,985
CASH ON CASH RETURN 49.94%
3-bedroom Baltimore
3-bedroom Baltimore

1819 N Monroe St, Baltimore, MD 212174

4. 3-Bedroom Type Property for Sale Baltimore
  • 0.2 miles to Matthew A. Henson Elementary School
  • Asking Price: $129,999
GROSS RENTAL YIELD 25.80%
ANNUAL REVENUE $33,534
CASH ON CASH RETURN 51.62%
4-bedroom Baltimore
4-bedroom Baltimore

3502 Benson, Baltimore, MD 21227

5. 4-Bedroom Type Property for Sale Baltimore 
  • Near Trout Creek Rd
  • Asking Price: $184,500
GROSS RENTAL YIELD 24.85%
ANNUAL REVENUE $45,847
CASH ON CASH RETURN 48.78%

Conclusion

In summary, Baltimore can be a great place to live and invest in Airbnb properties thanks to its affordable real estate market and low risk of natural disasters. The data points mentioned in this article for Baltimore such as Airbnb occupancy rates, annual revenue, and average daily rate should be your primary basis before investing in a property. 

To make sure that a property can generate a good cash flow, the right neighborhood should be studied and potential revenue should be calculated using an Airbnb income calculator. This is certainly what you need for success in the long run and to stand out among your competitors!

Airbnb Data
Airbnb Data

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