The Top Places to Buy a Rental Investment Property in Maryland 2023
- May 17, 2023
- Category: Uncategorized
Maryland is an attractive location for both nature lovers and real estate investors. The state boasts a strong economy, with a relatively high average household income of over $70,000. While some areas may be more expensive than others, it could be a wise decision to buy a rental investment property in Maryland in 2023.
Baltimore, the only major city in Maryland, has a population of over 600,000 residents and is conveniently located near other major cities in neighboring states such as Pennsylvania, Washington D.C., and New York. This location provides residents with access to a diverse range of opportunities and experiences.
If you are considering investing in real estate in Maryland, focusing on cities such as Baltimore and its surrounding areas is recommended. Other than them, below are some of the top places in Maryland where you can buy a rental investment property.
Top Places To Buy A Rental Investment Property In Maryland
1. District Heights
District Heights is a small but steadily growing suburb located in close proximity to Washington, D.C. While the population remains small at around 6,000 residents, there has been a steady increase in employment opportunities and home values.
One of the advantages of living in District Heights is its convenient location in the Capital Region, which provides easy access to many nearby towns and attractions. These can be reached by biking, public transportation, or walking. Whether you enjoy visiting local breweries, exploring nearby Frederick, taking in the views of the National Harbor, or venturing into the city, District Heights offers a convenient and affordable home base.
For property investors who are interested in purchasing real estate, District Heights might be a great place. With an average of 126 leads to choose from and a short average time of 19 days to fill properties, this suburb could be a profitable and promising investment opportunity.
Some District Heights Stats:
- Population: 5,959
- Median Value of Houses: $278,600
- Median Gross Rent: $1,340
- Median Household Income: $69,099
Hyattsville, Maryland, is an up-and-coming urban suburb of Washington, D.C., with much to offer. While it may be overlooked compared to some other suburbs around the U.S. capital, Hyattsville has a strong job market and a growing economy, making it an attractive place to live for people who work in the city. Despite being just a short metro ride away from Washington, D.C., Hyattsville has its own unique charm and character that sets it apart from the hustle and bustle of the city.
One of the things that make Hyattsville stand out is its vibrant food scene, with a variety of delicious and funky cuisines to choose from. In addition, the town is home to the Gateway Arts District, which showcases the work of local artists and adds to the creative energy of the area. Historical buildings and architecture also add to the town’s unique character and charm.
Given the many attractive features of Hyattsville, it’s not surprising that rentals in the area are in high demand. Students, families, and millennials are all flocking to the town, which means that landlords have an average of 86 leads per property. With such high demand, properties in Hyattsville tend to be on the rental market for only around 25 days before they are snatched up.
Some Hyattsville Stats:
- Population: 21,187
- Median Value of Houses: $380,900
- Median Gross Rent: $1,545
- Median Household Income: $84,763
Eldersburg is a charming and historically rich neighborhood located between Frederick and Baltimore, Maryland. What makes Eldersburg particularly attractive is the blend of a relaxed, rural lifestyle with the amenities of a larger city. Although there are plenty of commercial developments in the area, Eldersburg still retains a small-town feel that’s ideal for families with children.
In terms of location, Eldersburg is conveniently situated between Frederick and Baltimore, with both cities being easily accessible by primary transportation links such as Maryland Route 32 and Maryland Route 26. Additionally, families with school-aged children will be pleased to know that Eldersburg is served by the highly-regarded Carroll County public school system. Finally, for those looking to explore neighboring towns, Eldersburg is linked to Westminster and Sykesville via the Carroll Transit System.
Some Eldersburg Stats:
- Population: 32,582
- Median Value of Houses: $404,400
- Median Gross Rent: $1,408
- Median Household Income: $130,036
Baltimore, the largest city in Maryland, offers a promising opportunity for real estate investment due to its robust economy. However, it is essential to approach this investment cautiously and make informed decisions to compete with other investors in the market.
It’s crucial to research the communities you’re interested in and understand whether there’s a demand for rental properties or if the area would be suitable for flipping houses. For example, neighborhoods like Charles Village might be an excellent option if you’re looking to invest in rental properties.
On the other hand, if you’re interested in flipping a house, Lauraville could be a more suitable choice. Ultimately, by considering your investment goals and making informed decisions based on your research, you can maximize your chances of success in Baltimore’s real estate market.
Some Baltimore Stats:
- Population: 585,708
- Median Value of Houses: $175,300
- Median Gross Rent: $1,146
- Median Household Income: $54,124
5. Ellicott City
Ellicott City is a city in Maryland divided into two main areas: Historic Ellicott City and Greater Ellicott City. Each of these areas offers unique opportunities for property investment. As part of the Baltimore-Washington Metro Area, Ellicott City is conveniently located close to Baltimore and Washington D.C. and offers easy access to major highways.
In addition to its convenient location, Ellicott City also boasts a variety of things to do. The city offers superb dining options, craft beer from local breweries, and high-quality shopping at numerous small stores. For those interested in property investments, Ellicott City has a wide range of homes to choose from, including new planned communities and fresh housing options in the Greater Ellicott City area.
Some Ellicott City Stats:
- Population: 75,947
- Median Value of Houses: $564,900
- Median Gross Rent: $1,727
- Median Household Income: $136,234
Frederick, Maryland, is a thriving city with a growing economy and a robust infrastructure. With over 3,500 businesses operating in the city, it is evident that plenty of job opportunities are available for residents. It has led to an influx of people moving to the area, which in turn has caused a rise in demand for rental properties.
The median home value in Frederick is approximately $289,000, which is relatively affordable compared to other cities in the region. As a result, the average rent for a property is around $1,478, which is also quite reasonable.
Additionally, it’s interesting to note that there is a relatively even split between homeowners and renters in the area. It suggests that both options are viable and there are benefits to each. Renting a property in Frederick may be particularly advantageous for those who are new to the area and want to test the waters before committing to buying a home.
Some Frederick Stats:
- Population: 78,171
- Median Value of Houses: $289,000
- Median Gross Rent: $1,478
- Median Household Income: $82,563
7. Mount Airy
Mount Airy is a picturesque town in a region where several counties in Maryland meet, making it a prime location for anyone seeking a peaceful suburban lifestyle while still within reach of larger urban centers like Baltimore and Washington, D.C. The town’s Main Street is a hub of activity, offering a diverse range of dining options for food lovers, and the local farmer’s market is a great place to explore and try fresh produce on weekends. The local parks provide residents with numerous opportunities to stay active and enjoy the outdoors, with jogging, fishing, and tennis among the many activities available.
What makes Mount Airy genuinely unique is its history. The town was built along the historic railroad, and its growth from a small settlement to a medium-sized town is a testament to its enduring charm and appeal. Suppose you’re looking to invest in property. In that case, Mount Airy offers a range of options, from townhomes and single-family homes to apartments, with many homes in the Colonial-revival style that add to the town’s historic charm.
Some Mount Airy Stats:
- Population: 9,654
- Median Value of Houses: $392,000
- Median Gross Rent: $1,546
- Median Household Income: $136,250
Columbia, as a city, has a lot to offer residents and potential real estate investors. The city boasts high ratings in various areas, such as housing, schools, diversity, and nightlife. It suggests that Columbia is a desirable place to live and invest in property.
Moreover, with the median income being as high as $113,592, many of the city’s residents are financially stable enough to purchase homes, which means that rental properties can provide a valuable service to those who can’t or prefer not to buy a home. Additionally, the many amenities in Columbia, such as businesses, entertainment options, and restaurants, make the city an attractive destination for both residents and visitors alike.
Therefore, if you’re looking to invest in a rental or flip a property, Columbia is where you can expect to find interested parties.
Some Columbia Stats:
- Population: 104,681
- Median Value of Houses: $399,000
- Median Gross Rent: $1,795
- Median Household Income: $113,592
Sykesville is a small town in Maryland that perfectly balances the charm of a quaint community and the amenities of big cities. Located just 20 miles from Baltimore, Sykesville provides easy access to urban opportunities while maintaining its unique small-town atmosphere.
One of the town’s most notable attractions is the McKeldin Recreation Area, which offers a range of outdoor activities such as hiking, fishing, walking, disc golfing, and horseback riding. Additionally, the historic Main Street running through the central area of Sykesville adds to the town’s charm, hosting the Sykesville Farmers Market from June to October.
Sykesville’s real estate market provides ample opportunities for investment in single-family residences, townhomes, and apartments, making it an attractive option for those looking to invest in the local housing market. The high quality of life in Sykesville and comparatively lower housing prices compared to nearby major cities make it an even more appealing option for real estate investors.
Some Sykesville Stats:
- Population: 3,948
- Median Value of Houses: $353,800
- Median Gross Rent: $1,315
- Median Household Income: $110,335
Germantown is a unique and vibrant community in Maryland, just a short distance from the bustling metropolis of Washington, D.C. It is widely regarded as an ideal location to purchase a home, thanks mainly to its affordability compared to nearby cities. The median home value in Germantown is just over $357,100, making it an attractive option for families and individuals from all walks of life.
Not only is Germantown a great place to live, but it’s also an excellent opportunity for those interested in real estate investment. Germantown’s diverse and growing population means that there is a constant demand for rental properties, making it an attractive prospect for investors. Additionally, Germantown boasts excellent schools, a thriving restaurant scene, and plenty of activities for residents to enjoy.
What sets Germantown apart, however, is its convenient location. Situated just a short distance from major cities like Washington, D.C., Germantown offers residents easy access to all the amenities these cities offer.
Some Germantown Stats:
- Population: 91,249
- Median Value of Houses: $357,100
- Median Gross Rent: $1,822
- Median Household Income: $104,061
Rockville, Maryland, is a city that has experienced significant growth in recent years. This growth can be attributed to the city’s strong employment rate and job opportunities, attracting many people to the area. As a result, Rockville has become a desirable place to live and invest in a rental property. The city offers excellent schools, great dining options, and a vibrant nightlife, making it an attractive location for renters and homeowners alike.
Despite its higher cost compared to other Maryland cities, with a median home value of nearly $554,800, investing in a rental property in Rockville can be a wise decision for savvy investors. The city’s relatively even split between renters and homeowners suggests that there is a need for rental properties in the area, creating an opportunity for investors to tap into a growing market.
Some Rockville Stats:
- Population: 67,117
- Median Value of Houses: $554,800
- Median Gross Rent: $1,994
- Median Household Income: $116,031
12. Ocean City
Ocean City, situated on the Atlantic coast, is a picturesque town with a cozy atmosphere but with all the amenities of a big city. The town is a popular tourist destination, attracting over 8 million visitors each year, which has resulted in an abundance of conveniences that residents can take advantage of.
Living in Ocean City provides resort-style living, with the boardwalk offering various attractions, golf courses, and upscale dining experiences.
Additionally, the town is family-friendly, with top-rated schools, numerous parks to explore, and endless beach days to enjoy. One of the best things about owning rental property in Ocean City is that it can be used as a short-term rental, such as Airbnb, or as a typical rental property.
Some Ocean City Stats:
- Population: 6,844
- Median Value of Houses: $317,100
- Median Gross Rent: $1,063
- Median Household Income: $58,563
Maryland has several areas that offer promising opportunities for real estate investments. If you’re considering making a property investment, you should focus on a few areas: Sykesville, Columbia, Baltimore, Ellicott City, Rockville, Eldersburg, Germantown, and Mount Airy.
Conducting thorough research and analysis before making any real estate investment decisions will be essential.
That might involve looking at trends in the local housing market, examining rental rates and vacancy rates, evaluating the condition and potential of specific properties, and considering other factors that could impact your investment.
By taking a thoughtful and strategic approach, you can identify areas of opportunity and make intelligent decisions that help you achieve your investment goals.