Baltimore, MD

Market Update

Baltimore's population has shown a modest increase, reaching approximately 2,859,024 in the fourth quarter of 2026, reflecting a year-over-year growth of about 0.87%. This marks a recovery from a slight decline in the previous years, with net migration contributing positively, adding 50,737 residents. The median household income stands at $98,666, while the unemployment rate is reported at 4.3%. With 33.3% of the population renting, these demographic factors indicate a stable demand for housing in the area, supported by a strong employment base of approximately 1,479,139 individuals and an average weekly wage of $1,539.

In terms of multifamily fundamentals, the HUD Fair Market Rent for a two-bedroom unit is set at $2,020, which serves as a benchmark below the current asking rents. The median gross rent in Baltimore is $1,633, with year-over-year multifamily rent growth recorded at 4%. This growth suggests a positive momentum in the rental market, although affordability remains a concern given the rising rents relative to income levels. The asking rents for various unit types indicate a competitive market, with studio units priced at $1,460 and three-bedroom units reaching $2,600.

Capital market activity over the trailing 24 months has seen 85 transactions with a total volume of approximately $142.9 million, resulting in a median price per unit of $133,100. The multifamily cap rate is currently at 8.5%, which is about 146 basis points higher than the national median of 7.04%. This positioning indicates a relatively higher risk-return profile for investors in the Baltimore market. Recent trends suggest a stable outlook, although the market's cap rates and pricing dynamics will require careful monitoring as economic conditions evolve.