Baltimore has the visitors for short-term rentals: Orioles and Ravens games, the Inner Harbor, Johns Hopkins patients and families, and conventions downtown. What it does not have, for most investors, is a path to a license. City rules tie short-term rentals largely to the host's own home.
In short: LendingStreet finances short-term rentals for Baltimore-area investors with DSCR loans that can qualify on projected nightly-rental revenue on some programs, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV and the standard minimum DSCR is 1.0x. Because Baltimore City's licensing rules generally limit short-term rentals to a host's primary residence, most Baltimore investors buy STRs elsewhere in Maryland, such as Ocean City, Deep Creek Lake, Annapolis or the Eastern Shore, or run medium-term rentals in the city.
Baltimore City requires a license for short-term rentals and, under its rules, generally allows them only in the host's primary residence, with limited exceptions. That means a typical investor buying a rowhome in Canton or Federal Hill to run as a full-time Airbnb is unlikely to get a license. Check the current ordinance and licensing rules with the city before you buy, since rules and enforcement change.
Surrounding counties, including Baltimore County, Anne Arundel, Howard and Harford, set their own rules. Some require registration and limit non-owner-occupied rentals in certain zones, and many HOAs and condo associations prohibit stays under 30 days.
Operating without a license can lead to fines and complaints from neighbors, and lenders will not count income from a rental that cannot legally operate. Treat the license question as the first step of due diligence, before the inspection or the appraisal.
Many Baltimore investors pivot to furnished rentals of 30 days or more. Johns Hopkins Hospital, the University of Maryland Medical Center, Mercy and other hospitals bring traveling nurses, residents and families of patients who need housing for weeks or months. Visiting researchers, graduate students and relocating professionals add demand.
Rowhomes near the Hopkins East Baltimore campus, the Bayview campus, and the University of Maryland campus downtown tend to do best. These rentals are financed as standard DSCR rentals using market rent, and they still need a Baltimore City rental license and inspection.
Furnished monthly rentals usually earn more than an unfurnished lease but less than a strong nightly rental, with lower turnover costs. Many operators list on platforms that focus on traveling medical staff and sign 30- to 90-day agreements.
If you want true nightly rentals, look at markets built around visitors. Each has its own license, tax and HOA rules.
| Market | Season | What to check |
|---|---|---|
| Ocean City and Worcester County | Summer beach season | Town or county rental license, condo rules, flood zone |
| Deep Creek Lake (Garrett County) | Summer lake, winter ski | County rental license, occupancy limits, septic |
| Annapolis and Anne Arundel County | Boat shows, Naval Academy events | City or county STR license and caps |
| Eastern Shore (St. Michaels, Cambridge, Chestertown) | Spring through fall | Town rules, waterfront flood risk |
| Western Maryland and Frederick County | Weekend getaways, wineries | County zoning and registration |
This example is illustrative and not a quote. A Baltimore investor buys a two-bedroom condo in Ocean City for $425,000. The revenue projection supports about $50,400 a year, or $4,200 a month averaged over twelve months. Condo dues are $450 a month, taxes $300 and the unit insurance policy $120.
At 75% LTV the loan is $318,750. Estimated principal and interest on a 30-year term is about $2,174, for a total payment of about $3,044. DSCR on the projection is about 1.38x. If the underwriter trims revenue by 15% to $3,570, DSCR is about 1.17x.
| Item | Projected revenue | Revenue reduced 15% |
|---|---|---|
| Loan amount | $318,750 | $318,750 |
| Estimated principal and interest | $2,174 | $2,174 |
| Condo dues | $450 | $450 |
| Taxes and insurance | $420 | $420 |
| Total monthly payment | $3,044 | $3,044 |
| Qualifying monthly revenue | $4,200 | $3,570 |
| DSCR | 1.38x | 1.17x |
Ocean City earns most of its revenue between Memorial Day and Labor Day, with shoulder weekends in spring and fall and a quiet winter. Deep Creek Lake has two seasons, summer on the water and winter skiing at Wisp, which can smooth income. Annapolis peaks with the spring and fall boat shows and Naval Academy events.
Projections average the year, but your cash does not arrive evenly. Keep reserves to cover the winter months at the beach.
Many Ocean City owners rent weekly in summer and offer monthly winter rentals to local workers, which brings in some off-season income. If you plan to do this, tell the underwriter so the projection reflects how the property will really run.
Many Ocean City condos allow weekly rentals, but some buildings limit rental terms or require registration with the association. Condo projects with a large share of rental units, commercial space or pending litigation can be harder to finance. Ask for the association's budget, insurance and rental rules early.
Waterfront condos and homes may be in flood zones that require flood insurance, which is part of the payment in the DSCR ratio.
Maryland charges sales tax on short-term stays, and counties and some towns add a local accommodations or hotel rental tax. Worcester County, Garrett County, Anne Arundel County and the City of Annapolis each have their own rules. Some booking platforms collect certain taxes, but confirm which ones you must file yourself.
Property taxes in Maryland combine a state levy with county and, in some places, town taxes. Budget the full bill on your purchase price.
Maryland also charges state and county transfer and recordation taxes at closing, and the amounts vary by county. Worcester and Garrett counties have their own rates, so ask the title company for the full closing cost estimate before you commit.
On some programs, the loan can qualify on a third-party revenue projection rather than a lease. If it comes in low, see /str-loan-low-airdna-projection.html. Owners with a year of booking history can use it on some refinance programs, and cash-out goes up to 75% LTV.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price and revenue plan, and we will size the loan on the projection and on a long-term rent fallback. Call (877) 298-1001 or use the form below.
Generally not as a full-time nightly rental. Baltimore City's rules tie short-term rentals largely to the host's primary residence. Check current rules for your address.
Many run furnished rentals of 30 days or more near the hospitals, or buy nightly rentals in Ocean City, Deep Creek Lake, Annapolis or the Eastern Shore.
Yes, if the building allows rentals and the project meets program requirements. Review the association's rules and budget first.
Not on every program. Some programs qualify on a third-party revenue projection.
State sales tax plus county or town accommodations taxes in many places. Check what your platform collects.
The program minimum is 620.
Yes. Baltimore City requires a rental license and inspection for rental properties.
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