Maryland 4plexes: House Hacking in Maryland

Why Consider a 4plex in Maryland?

• Ongoing rental demand in Baltimore and the Washington suburbs
• Ability to use FHA and other low-down-payment loans when owner-occupying
• A large government, health care, and biotechnology renter base
• A compact state where commuter suburbs and the Baltimore market sit close together

Local Advantages

With about 6.3 million residents (U.S. Census Bureau estimates), Maryland is home to a broad renter base. The state's largest metro areas include Baltimore-Columbia-Towson and the Maryland suburbs of the Washington metro area, with Frederick and Salisbury as additional regional centers.

Maryland has statewide tenant protections, including state rules on security deposits and notice requirements. Some counties, such as Montgomery County, also have local rent stabilization rules, so the county where a property sits can change the rental picture.

Property taxes in Maryland are set locally and vary by county, so two nearby counties can have noticeably different tax bills. Insurance costs can reflect Chesapeake Bay coastal storm exposure in bayfront and low-lying areas.

Financing a Maryland 4plex

If you plan to live in one unit, you may qualify for residential loan programs (including FHA) with lower down payments than commercial financing requires. FHA is a federal program, and FHA loan limits are set at the county level, not the state level, so the limit for a property depends on the county where it sits. A lender familiar with four-unit properties can walk through the owner-occupancy rules and the paperwork involved.

For down-payment assistance, check the state housing finance agency and local programs: whether a program allows four-unit properties varies by program, so confirm four-unit eligibility before counting on any particular program.

Because some Maryland counties add local rent rules on top of state law, buyers should confirm the county-level rules for a property before setting lease terms.

Loan and Down Payment Programs in Maryland

Maryland answers the four-unit question in regulation, not just in marketing material, and the answer comes with a condition worth reading closely.

Maryland Mortgage Program, with the Down Payment and Settlement Expense Loan Program — fits a 4plex: yes, with a tenant-income condition. Maryland regulation COMAR 05.03.01.04 defines an eligible residence as one comprised of one to four residential units, and adds that when the residence has two to four units, each unit not occupied by the borrower must be occupied by a household of limited income. The Down Payment and Settlement Expense Loan Program supplies down payment and settlement expense assistance alongside the first mortgage; check the Maryland Department of Housing and Community Development for the current assistance terms. Source: COMAR 05.03.01.04.

The national programs round out the picture. HomeReady and Home Possible are the low-down-payment conventional options, both capping qualifying income at 80% of area median income: HomeReady offers 3% down on one-unit properties with two- to four-unit purchases capped at 95% loan-to-value, while Home Possible offers 3% down and expressly includes one- to four-unit properties (Fannie Mae HomeReady; Freddie Mac Home Possible). FHA insures owner-occupied one- to four-unit properties with 3.5% down at a qualifying credit score of 580 or higher, county-level loan limits, and a self-sufficiency test on four-unit purchases (HUD loan programs). VA loans cover up to four units for eligible veterans, service members, and surviving spouses occupying one unit as a primary residence, generally with no down payment (VA home loans). Standard conventional financing covers a four-unit property with mortgage insurance under 20% down (Fannie Mae originating and underwriting).

How Many Cities Are in Maryland?

Maryland has 157 incorporated municipalities. Maryland law treats cities, towns, and villages as a single class of municipality, so 157 is the incorporated total rather than a count of places called "city" alone. Baltimore City is counted among the 157 and is also an independent city, separate from any county. Source: Ballotpedia counties in Maryland, citing a 2022 U.S. Census Bureau study.

How Many Counties Are in Maryland?

Maryland has 23 counties, plus Baltimore City as an independent city, making 24 county-equivalents in total. Baltimore City's independent status matters for a buyer: property records, taxes, and local rules there run through the city itself rather than through a county. Source: County statistics of the United States.

Fire Insurance Costs in Maryland

Bankrate's September 2025 figures report an average annual homeowners insurance premium in Maryland of $1,664 for a home with $300,000 in dwelling coverage, with flood and earthquake coverage excluded. Coastal and Chesapeake Bay storm exposure is the key driver, and properties near the Bay or the Atlantic coast generally cost more to insure than inland ones. These are statewide averages for a standard home; a four-unit building's actual premium depends on the property itself, its construction, and its exact location, so get quotes from an insurer for the specific property. Source: Bankrate homeowners insurance cost.

What to Look for in a Maryland Fourplex

• Strong rental comps in the immediate neighborhood
• Reasonable property condition and maintenance needs, especially in older Baltimore-area buildings
• A layout that works for both owner-occupancy and tenants
• Realistic numbers after taxes, insurance, and expenses, including any coastal insurance costs

Get in Touch

Questions about house hacking with a 4plex? Start with the guides below, or reach us through our national contact channels. We do not offer local support in Maryland; the contacts below are national only.

• Get the Playbook
• How to Buy a 4plex
• House Hacking Guide
• Toll Free (national contact only): (833) 4PLEXES
• Email: info@4plexes.com