Maryland's seven-figure rentals are concentrated in a few areas: Montgomery County's close-in suburbs, the Annapolis waterfront and the Chesapeake and Atlantic shores. Each has its own rules that a large DSCR loan has to account for.
In short: LendingStreet finances $1M+ Maryland rentals with DSCR loans that qualify on the property's rent, not your tax returns. Loans start at $150,000 with no stated maximum, and larger balances are reviewed and priced case by case. Executive homes in Bethesda, Chevy Chase and Potomac usually qualify on long-term rent because Montgomery County limits short-term rentals to the operator's own home, and the ratio often calls for more than the minimum down payment. Lead paint registration on older rentals, Chesapeake Bay waterfront rules and county rent stabilization are the Maryland items to settle early.
Montgomery County leads. Bethesda, Chevy Chase, Potomac and parts of Rockville and Kensington have large single-family homes close to Washington, the National Institutes of Health, Walter Reed and a dense cluster of federal agencies and contractors. These homes rent to executives, physicians, researchers, diplomats and families who want the county's schools.
Annapolis and Anne Arundel County have high-value waterfront homes on the Severn River, Spa Creek and the Chesapeake, often near the Naval Academy. Howard County, around Ellicott City and Columbia, has executive homes in a well-regarded school system. In Baltimore, Roland Park, Guilford and the waterfront neighborhoods of Federal Hill, Canton and Harbor East have some higher-value homes and condos, though fewer reach seven figures.
On the Eastern Shore, St. Michaels, Easton and Oxford have waterfront estates, and Ocean City and nearby beach towns have larger vacation homes and condos.
This example is illustrative and not a quote. An investor buys a single-family home in Bethesda for $1,400,000 and leases it at $8,200 a month. Property taxes and insurance total about $1,500 a month. The sample rate is 7.00% on a 30-year fixed.
At 70% LTV, the loan is $980,000, principal and interest is about $6,520, the total payment is about $8,020 and DSCR is about 1.02x. At 65% LTV, the loan is $910,000, principal and interest is about $6,054, the total payment is about $7,554 and DSCR is about 1.09x. The extra $70,000 down buys a meaningful cushion above 1.0x.
If the home came with a signed lease above $8,200, the 70% option would gain room too. Either a stronger lease or more equity can carry a tight Bethesda ratio over the line.
| Item | 70% LTV | 65% LTV |
|---|---|---|
| Down payment | $420,000 | $490,000 |
| Loan amount | $980,000 | $910,000 |
| Principal and interest (7.00%, 30-year) | About $6,520 | About $6,054 |
| Taxes and insurance | $1,500 | $1,500 |
| Total monthly payment | About $8,020 | About $7,554 |
| DSCR at $8,200 rent | About 1.02x | About 1.09x |
Montgomery County requires rental licenses for residential rentals and inspects rental housing. It limits short-term rentals to the operator's primary residence, which generally rules out investor-owned nightly rentals. That makes long-term rent the qualifying income for most $1M+ county rentals.
The county also adopted rent stabilization in 2023, limiting annual rent increases on many rental units, with exemptions such as newer construction. Takoma Park has had its own rent stabilization for many years. How these rules apply depends on the property, so confirm with a Maryland attorney before you buy a tenant-occupied home or plan rent increases.
None of this blocks a DSCR loan. It does mean the rent you use to qualify should be the rent you can legally collect, and your long-term projections should account for any limits.
Waterfront homes near Annapolis and on the Eastern Shore are some of Maryland's most valuable rentals. Land within 1,000 feet of tidal waters generally falls in the Chesapeake Bay Critical Area, where development, clearing and additions are restricted. If you plan to expand or rebuild, check what the Critical Area rules allow first.
Waterfront properties often need flood insurance, and premiums on high-value homes can be large. Piers, bulkheads and shoreline condition also come up in inspections and appraisals. Get flood and homeowner's quotes early, since every premium goes into the payment.
Annapolis regulates short-term rentals through city licensing, and Anne Arundel County has its own rules. If you hope to rent by the night during sailing season or Naval Academy events, confirm the property's eligibility before you count on that income.
Maryland has one of the country's best-known lead paint laws for rental housing. Rental properties built before 1950 generally must be registered with the Maryland Department of the Environment and meet lead risk reduction standards at each tenant turnover, and the rules have expanded to cover some properties built through 1977.
Many high-value homes in Chevy Chase, Roland Park and historic Annapolis are old enough to be covered. Ask for registration and inspection certificates, and confirm your obligations with a Maryland attorney or the department. Underwriting may ask about compliance on older buildings.
Baltimore is better known for lower-priced rowhouse rentals, but it has a high-value segment too. Large homes in Roland Park and Guilford rent to Johns Hopkins faculty, physicians and executives. Renovated rowhouses and condos in Federal Hill, Canton and Harbor East attract professionals who want to live near the harbor.
Some of these properties are 2-4 unit buildings, where several rents help the ratio. Others are single large homes with one rent. Baltimore City requires rental licensing and inspections, and older homes bring lead paint and condition questions.
Property taxes in Baltimore City are higher than in most surrounding counties, which matters on a large loan. Use the actual bill when you run the ratio.
Ocean City and nearby beach towns are built around summer rentals, and many larger homes and condos there rent by the week. STR DSCR loans can qualify on projected revenue, with rates from 6.49% for qualified borrowers. Ocean City and Worcester County require rental licensing, and condo associations may set their own rules.
Beach rentals are highly seasonal, so lenders look at annual revenue, not peak weeks. A rental history from the current owner or a local management company helps. Wind and flood insurance near the ocean go into the payment and can be significant.
Maryland's state and county transfer and recordation taxes can add up on a large purchase, and rates vary by county. Your title company can estimate them. They are closing costs, not part of the DSCR payment, but they affect the cash you need.
Some Baltimore-area properties are subject to ground rent, where the land is leased under a long-standing arrangement. Title should identify any ground rent, and it should be addressed before closing.
Beyond the ratio, these are the items that most often shape a large Maryland file.
Many Maryland investor loans sit between $500K and $1M. Typical examples are townhomes and single-family homes in Rockville, Gaithersburg, Silver Spring, Columbia and Ellicott City, renovated rowhomes in Baltimore neighborhoods like Canton, Federal Hill, Riverside and Hampden, and condos and smaller homes in Ocean City and other Eastern Shore towns.
At this size, leverage is often closer to the program limits of 80% LTV on purchases and 75% on cash-out, and reserves are often lighter than on $1M+ loans. Both vary by program, and the 1.0x standard minimum DSCR and 620 credit floor are unchanged.
Montgomery County rental licensing, Maryland's lead paint registration rules for older rentals, and Baltimore ground rent questions still come up at this size, so build them into the timeline.
DSCR rates start at 6.125% for well-qualified borrowers and short-term rental DSCR starts at 6.49%. Larger balances are priced case by case. Purchases go up to 80% LTV and cash-out refinances up to 75%, but on large balances the maximum LTV is often lower and reserve requirements higher.
The minimum credit score is 620, with better pricing at higher scores. LLC borrowers are allowed, 30-year fixed options are available and no W-2s or tax returns are required. The financing team reviews your scenario and comes back with 2-3 options.
Yes. LendingStreet finances investment property in Maryland, including Bethesda and Potomac executive homes, Annapolis waterfront properties and Eastern Shore vacation homes above $1 million. Loans start at $150,000 with no stated maximum.
Generally not. Montgomery County limits short-term rentals to the operator's primary residence, so most investor properties there qualify on long-term rent.
It can affect future rent increases and the rent you rely on for a tenant-occupied home. The lender uses current leases or market rent. Confirm how the rules apply with a Maryland attorney.
Yes, if the home is old enough to be covered. Maryland's rules depend on the year built, not the price. Have registration and inspection certificates ready.
Yes, where the property can be licensed as a rental. STR DSCR loans can use projected annual revenue, with rates from 6.49% for qualified borrowers.
Not necessarily, but flood insurance, shoreline condition and Critical Area rules come up more often. Get insurance quotes early.
Purchases go up to 80% LTV, but on large balances the maximum is often lower and varies by program. The ratio may need more equity, so test your numbers first.
It needs to be identified and addressed before closing. Your title company will flag any ground rent on the property so it can be handled.
Yes. Cash-out refinances go up to 75% LTV, and the rent must cover the new payment at the program minimum. Seasoning varies by program.
Yes. DSCR loans start at $150,000 with no stated maximum, and $500K to $1M loans are common for Montgomery and Howard County townhomes and single-family homes, renovated Baltimore rowhomes, and Ocean City condos.
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