BALTIMORE ZIP RENT VS INCOME
SUM OF SFR2019 RENT TO INCOME
20.00 45.00
family home. These areas border the Washington metro area, which holds well-paid job opportunities with a commute of less than one hour.
rental days on market are also higher than the average at 29 days. These numbers may be negatively influenced by low quality rentals which can sit on the market for long durations. Gross Rental Yields (GRY), excluding expenses, across the top 100 U.S. markets come in at 8.5 percent. The average GRY in the Baltimore metro comes in at a slightly higher 9.45 percent. CONCLUSIONS Although most news focuses on Baltimore’s inner city crime and population declines, the surrounding areas have many sub-markets that offer great returns. Market appreciation rates are more stagnant than other markets, yet the low unemployment rate and multiple industries providing high paying jobs provide a stable market for long-term SFR real estate investment. •
SATURATION, VACANCY & YIELDS The Baltimore MSA rental saturation for single- family properties (non-owner-occupied properties versus total) comes in at a relatively low 18.4 percent. Considering all property types, the rental saturation is 34.2 percent. The market has a relatively high homeownership rate, likely due to the affordable home prices in the area. The low saturation also indicates an absence of single-family rentals versus demand driven by the active job market. For small-to-midsize investors and individuals, as of November 2019, there was a very low presence of institutional investors owning >100 units. This is a benefit as it can help to avoid bidding wars, which can drive up the purchase price. The area vacancy rate of 7.5 percent is marginally above the national average of 6.8 percent. Average
Fred Heigold III is the senior data analyst at RentRange, an industry leader in market data and analytics for the single-family rental housing industry.
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