Baltimore rowhouse conversions, Silver Spring garden buildings and divided Victorians in Frederick: Maryland's five- to eight-unit buildings come with licensing, lead and closing-cost details that a good lender plans for.
In short: Our top pick for 5-8 unit rentals in Maryland is LendingStreet. We underwrite five- to eight-unit buildings as residential DSCR loans on the combined rent of every legal unit, with no W-2s or tax returns and LLC borrowing as standard. Thirty-year terms are available, and loans start at $150,000 with no stated maximum. We also build Maryland specifics into the review, including Baltimore's high tax rate and rental licensing, the state lead law, county rent rules and transfer and recordation taxes.
Much of Maryland's five- to eight-unit stock is converted housing: Baltimore rowhouses and brownstones split into apartments, large older homes in Hagerstown and Frederick divided into units, and small garden buildings in the Washington suburbs. Lenders often struggle to fit these buildings into a program, and many send them to a commercial desk.
LendingStreet treats 5-8 unit buildings as residential DSCR loans. You qualify on the combined rent of every legal unit, with no W-2s or tax returns, a 620 minimum credit score and LLC borrowing as standard. Loans start at $150,000 with no stated maximum, 30-year terms are available, and the standard minimum DSCR is 1.0x, with sub-1.0 programs on some files. Max LTV on 5-8 units varies by program.
To price a Maryland building, get a quote with the form below or call (877) 298-1001.
Well-known 5-8 unit rental lenders include CoreVest, Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital. Compared scenario by scenario for investors in Maryland, LendingStreet comes out as the stronger choice, and one application covers it.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| 5-8 unit building | LendingStreet | We treat 1-8 units as residential DSCR. Lima One and CoreVest state 1-4 unit eligibility for their rental loans. |
| Rental loan above $2M | LendingStreet | Our DSCR loans have no stated maximum. LendingOne states DSCR loans up to $2,000,000 and RCN Capital states long-term rental loans up to $1.5M. |
| Credit score in the 620s | LendingStreet | Our DSCR minimum is 620. RCN Capital and New Silver state 660 minimums, and Dominion Financial states 680, with exceptions to 660. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
The comparison below is general; individual lenders differ. A relationship bank can suit a borrower with strong financials, and a short-term lender can carry a gut rehab.
| What investors need | LendingStreet | Typical bank or credit union | Typical hard money lender |
|---|---|---|---|
| Treatment of 5-8 units | Residential DSCR | Often commercial | Short-term project loan |
| How you qualify | Rent of all legal units | Often tax returns and financial statements | The deal and exit plan |
| Term | 30-year terms available | Shorter terms or balloons common | Usually short-term only |
| LLC borrower | Standard | Common | Common |
| Where they lend | All 50 states and DC | Often one region | Usually local |
| Leverage | Varies by program | Varies by bank | Fees and terms vary |
In Baltimore, converted buildings with five or more units cluster in Mount Vernon, Bolton Hill, Charles Village, Reservoir Hill and the neighborhoods around Patterson Park and the Homewood campus. Many are three- or four-story rowhouses with one unit per floor plus a basement or rear unit.
Outside the city, Silver Spring, Takoma Park, Hyattsville and College Park have small garden buildings near transit and the University of Maryland. Frederick, Hagerstown, Cumberland and Salisbury offer older converted houses at lower prices per unit.
Converted buildings make the legal unit count especially important. Check zoning and the rental license for each unit before you count its rent.
Maryland's lead law requires owners of rental units built before 1978 to register them with the state environment department and meet lead risk reduction standards, including inspections at turnover. Baltimore City requires a rental license with a home inspection for every rental, and Montgomery County and other jurisdictions license rentals too.
Montgomery County adopted rent stabilization in 2023 that limits annual increases on many buildings, and Takoma Park has long had its own rent stabilization. Check the current rules wherever you buy, since they affect future rent growth.
Closing costs are also heavier than in many states. Maryland charges a state transfer tax, and counties add their own transfer and recordation taxes, so get a title estimate early. In Baltimore, some properties still carry a ground rent, which title will flag.
This example is illustrative and not a quote. An investor buys a five-unit converted rowhouse near Charles Village for $640,000. Each unit rents for $1,200, for $6,000 a month. Baltimore City's tax rate is the highest in the state, so taxes are budgeted at $1,199 a month on the purchase price, with insurance at $425.
At 75% LTV the loan is $480,000, estimated principal and interest is about $3,274, the total payment is about $4,898 and DSCR is about 1.22x. At 70% LTV the loan is $448,000, estimated principal and interest is about $3,056 and DSCR is about 1.28x. Max LTV on 5-8 units varies by program.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $480,000 | $448,000 |
| Estimated principal and interest | $3,274 | $3,056 |
| Taxes and insurance | $1,624 | $1,624 |
| Total monthly payment | $4,898 | $4,680 |
| DSCR at $6,000 rent | About 1.22x | About 1.28x |
We add up rent from every legal unit and divide by the full payment. Leases carry the most weight, and a market rent estimate can support a vacant unit. Older conversions get a close look at fire separation, egress, electrical service and heating, because these items come up on appraisals and inspections.
If a building needs work before it can be licensed or fully leased, a bridge loan can fund the rehab and a DSCR refinance can take it out once it is rented.
Location affects insurance as well. Buildings in Annapolis, low-lying Baltimore waterfront blocks and parts of the Eastern Shore can sit in mapped flood zones, where flood insurance is generally required and adds to the monthly payment. Get the flood determination and quote early.
Ask any lender you are considering these questions. Here are LendingStreet's answers.
Send the address, price, rent roll, tax bill, insurance quote, rental license and lead certificates, and your LLC documents, plus the loan amount you want. We will run the ratio and send back options. Buildings with 9 or more units are commercial; see our commercial page. Get a quote with the form below or call (877) 298-1001.
Our top pick is LendingStreet. We treat five- to eight-unit buildings as residential DSCR loans on the rent of every unit, with no tax returns, LLC borrowing and 30-year terms.
Yes. We lend statewide in Maryland, including Baltimore City, Baltimore County, Montgomery and Prince George's counties, Annapolis, Frederick and the Eastern Shore, and in all 50 states and DC.
Baltimore requires a rental license with an inspection for every rental. Know the license status of each unit before closing.
Pre-1978 rental units must be registered with the state and meet lead risk reduction standards. Budget for inspections and any required work.
It limits future rent increases on many buildings, which affects your long-term cash flow. We underwrite on current rents.
Some Baltimore properties carry a small annual ground rent owed to a separate owner of the land. Title will flag it, and it should be handled before closing.
Yes, once the building is leased and licensed. Seasoning and max LTV vary by program.
Buildings with 9 or more units are commercial loans with separate rules.
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