1st Advantage MortgageHagerstown is a MD market where the rent-to-payment ratio decides the loan. Median rent is $1,114, median home value is $224,500 and 57% of households rent.
Hagerstown by the Census numbers
Start with the two numbers every DSCR file turns on. Rent in Hagerstown runs a median $1,114 a month (well below the Maryland median of $1,705), and the median owner-occupied home is worth $224,500. Annual median rent is about 6.0% of the median home value in Hagerstown. That is a middle-of-the-road gross ratio, but it blends every housing type, so a house on a specific street needs its own rent comparables.
| Indicator | Maryland | Hagerstown | Difference |
|---|---|---|---|
| Households that rent | 32.4% | 56.7% | +75% |
| Tax as a share of home value | 0.97% | 1.15% | +18% |
| Annual property tax bill, median | $4,093 | $2,585 | -37% |
| Typical owner-occupied value | $419,900 | $224,500 | -47% |
| Persons per household | 2.57 | 2.36 | |
| Share in 2-4 unit buildings | 3.6% | 14.4% | +302% |
| Share of homes detached | 51.2% | 33.3% | -35% |
| Long commuters, 45 min plus | 24.2% | 16.5% | -32% |
| Degree holders, age 25+ | 43.4% | 20.5% | -53% |
| Workers on their own account | 8.7% | 7.1% | -19% |
| Renters paying 30%+ of income | 51.5% | 51.6% | +0% |
| Units sitting vacant | 7.7% | 7.8% | +1% |
| Typical construction year | 1979 | 1962 | |
| Annual rent divided by value | 4.9% | 6.0% | +22% |
| Residents (Census estimate) | 6,206,011 | 43,665 |
A renter-heavy city, Hagerstown has 56.7% of households renting (well above the Maryland median of 32%), which is good for demand and a reminder to check rent comparables carefully. Against a median household income of $52,221 (well below the Maryland median of $103,678), 52% of renters report rent at or above 30 percent of income.
Homes, buildings and vacancies in Hagerstown
The housing stock in Hagerstown leans toward shared walls: 36% of units are in multi-unit buildings, and 14% sit in small two to four unit properties. The median home was built in 1962, so plan for older systems, lead-era paint questions and a repair reserve.
Vacancy is a quiet driver of rent. 8% of homes are vacant citywide and 4.4% of the rental inventory was listed for rent when the Census surveyed.
Underwriting angles in Hagerstown
At 6.0%, Hagerstown is neither a bargain nor a stretch for DSCR underwriting, so the file turns on the exact rent, tax and insurance figures for the property. With homes this old, a pre-offer inspection is not optional in Hagerstown. Because 57% of households rent, vacancies tend to refill, and the pricing question is how much to charge relative to nearby units.
Taxes and risk in Hagerstown
Homeowners in Hagerstown paid a median $2,585 in real estate taxes, well below the Maryland median of $4,093, an effective rate near 1.15% of home value against 0.97% statewide. That is about 19% of a year of median rent gone to taxes before the loan is even counted.
Washington County carries a relatively low overall rating in FEMA's National Risk Index, where drought (relatively moderate), hurricanes (relatively moderate) and winter weather (relatively moderate) rank highest.
| Hazard in Washington County, FEMA index | Level |
|---|---|
| Heat waves exposure | Relatively Moderate |
| Winter weather exposure | Relatively Moderate |
| Hurricanes exposure | Relatively Moderate |
| Drought exposure | Relatively Moderate |
| Social vulnerability score | Relatively Moderate |
| Annualized loss estimate | Relatively Low |
| Composite risk | Relatively Low |
Many investors meet insurance too late, so get a quote tied to the Hagerstown property's roof age and flood zone before you waive your inspection period.
What the Hagerstown medians allow
At the city medians a DSCR file in Hagerstown has $899 a month after taxes to cover principal, interest, insurance and dues if the ratio is 1.00, or $676 if the ratio is 1.25. Those two numbers show why insurance quotes and tax estimates come first.
Rules a Hagerstown landlord should check
Before you underwrite a Hagerstown rental, confirm with city hall and Washington County whether landlords must register, pass an inspection or hold a permit, especially for stays under 30 days, because those rules can change what income a lender will count. State tax treatment of short stays, as it applies to Hagerstown. Maryland's 6 percent state sales and use tax applies to transient lodging, short-term rental platforms that take bookings are accommodations intermediaries who must collect and remit it, and monthly or permanent rentals are generally excluded.
Plan for a 45 day return window on any Hagerstown deposit once the tenant moves out. On rent control, No statewide cap found in Title 8; § 8-209 only regulates notice and does not displace local laws.
How Hagerstown stacks up against its neighbors
Looking across the table, values run from $240,000 (Martinsburg) up to $485,200 (Shepherdstown), and Hagerstown lands at $224,500.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Charles Town | 25% | $2,213 | $377,700 | 7,337 | $1,115 |
| Frederick | 41% | $5,001 | $401,500 | 83,395 | $1,764 |
| Martinsburg | 52% | $1,529 | $240,000 | 18,904 | $1,150 |
| Shepherdstown | 27% | $2,594 | $485,200 | 1,460 | |
| Hagerstown | 57% | $2,585 | $224,500 | 43,665 | $1,114 |
Tenants, jobs and anchors in Hagerstown
Roughly 7.1% of employed people in Hagerstown are self-employed, a base of investors and landlords for whom a rent-based loan is a practical option. Three more data points: government workers are about 14% of employment, 20% of adults hold a bachelor's degree or higher and 16% of commuters travel 45 minutes or more.
Campuses such as Hagerstown Community College and University System of Maryland at Hagerstown pull tenants into Hagerstown, and landlords near them can plan around move-in seasons. Access runs through interstate access via I-81 and I-70 and air service through Hagerstown Regional Airport and Orlando Sanford International Airport, which shapes where commuters want to live and how long a showing takes.
Putting a Hagerstown file together
Gather the lease or rent estimate, the tax estimate and an insurance quote for the Hagerstown address, check them in the calculator, and begin your application or get a quote first.
More Maryland markets
- All Maryland DSCR loans
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- DSCR loans in Charles Town, WV
- Every market we cover
Where we checked
- Deposit statute: Md. Code, Real Prop. § 8-203(b), (e), (g)
- State rule cited for Hagerstown hosts: Maryland Comptroller, business tax tip 8
- U.S. Census Bureau data for Hagerstown
- Federal hazard index, MD
- Hagerstown on Wikipedia
All Hagerstown statistics are ACS five-year survey estimates from 2020 to 2024. Landlord rules for Hagerstown rest on Maryland statutes and the CC BY 4.0 RedFlagLease dataset. Verified October 2026. Ordinances and statutes change, so confirm before acting.
Pre-offer checklist
Ask the seller for twelve months of utility bills and any lease on the Hagerstown property, confirm who pays water, trash and lawn care, and get the insurance quote before the inspection period ends so the ratio is tested on real numbers.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
How is Hagerstown rent documented for a DSCR loan?
The property's own rent evidence decides: a lease, or the market rent from the appraisal. Citywide, Hagerstown renters report a median of $1,114.
What payment can a Hagerstown rent support?
Taxes, insurance and dues are inside the payment the lender tests. Run $1,114 through a 1.25 ratio and the ceiling is about $891; subtract $215 for median taxes and $676 remains.
What tax bill should I expect on a Hagerstown rental?
Hagerstown owners report a median $2,585 in annual real estate taxes, an effective 1.15% (Maryland: 0.97%). Your own bill depends on the assessed value after purchase.
Will a lender count nightly rental income at a Hagerstown property?
Depending on the lender, yes, if the property may legally be used that way and income is documented. Confirm the local permit, association rules and Maryland lodging taxes before you underwrite nightly income in Hagerstown.
What deposit rules apply to a MD rental?
Return: 45 days. Statute: Md. Code, Real Prop. § 8-203(b), (e), (g). Confirm current text before you rely on it.
Is flood or storm risk a concern for a Hagerstown rental?
Overall risk is rated relatively low for the county. Because the rating covers a whole county, look up the specific property on FEMA's flood map before you offer.
Can a company be the borrower on a Hagerstown purchase?
An individual can borrow too. If you prefer an entity for the Hagerstown purchase, expect to provide formation documents and sign a personal guaranty.