Montgomery County, MD Metro · Maryland County Underwriting Brief

Montgomery County, MD DSCR Property Tax, Windstorm & Transfer Tax Guide

In Montgomery County, Maryland (Montgomery County, MD metro), 1–4 unit investment properties carry an average effective property tax rate of 1.04% and landlord hazard insurance averaging $540 per $100K of coverage. At a median 1–4 unit acquisition price of $595,000 and Form 1007 market rent of $3,850/mo, a 75% LTV DSCR loan models at 1.05x DSCR ($3,678/mo total PITIA).

Effective Property Tax
1.04%
Est. $516/mo at median
Landlord Ins / $100K
$540/yr
Est. $268/mo DP-3
Median 1–4 Unit Price
$595,000
75% LTV: $446,250
Modeled 75% LTV DSCR
1.05x
$3,850 rent / $3,678 PITIA

Montgomery County Escrow & Closing-Cost Underwriting Rules

1. Post-Acquisition Tax Reassessment

Statutory county assessor periodic revaluation; underwriters use post-acquisition projected tax bill (typically 85%–100% of purchase price × county millage rate).

2. Windstorm, Flood & Hazard Tier

DC Metro Biotech Corridor

3. Transfer & Mortgage Recording Taxes

Combined State + County Realty Transfer & Recordation Tax (typically 2.0%–4.28% split between buyer and seller by local custom).

4. CEMA / Doc-Stamp Optimization Strategy

Underwrite post-acquisition tax bill using county millage calculator to prevent Year-2 escrow shortage.

Other Maryland Counties in the Atlas

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Montgomery County, MD DSCR Underwriting, Property Tax & Insurance Guide (2026) | Stephen R. Mannenbach | Stephen Mannenbach