The biggest local operating costs for Baltimore apartment owners are a city property tax rate roughly double Baltimore County’s, water and sewer charges that have been rising about 9% a year, and a rental licensing system that requires third-party inspections. Each of these is set by city or state rules, so owners can budget for them with more precision than for most expenses.
Property tax in an independent city
Baltimore is an independent city, separate from Baltimore County, and it levies its own real property tax. For fiscal 2027, which began July 1, 2026, the city’s published rate is $2.248 per $100 of assessed value. Baltimore County’s rate is $1.10. Owner-occupied homes in the city receive a targeted homeowner credit that lowers their effective rate, but rental buildings do not, so apartment owners pay the full nominal rate. Properties inside special benefits districts pay an added surcharge per $100 of value.
Assessments come from the Maryland State Department of Assessments and Taxation on a three-year cycle, and the city is split into three reassessment areas. Depending on the address, a building’s next reassessment falls on January 1, 2027 or January 1, 2028, and one area was reassessed for January 1, 2026. In that 2026 group, commercial values rose 7.1% and residential values 13.4%. Increases phase in evenly over three years, while decreases take effect immediately, so a new assessment notice shows up in the budget gradually.
Water, sewer and stormwater charges
Utility costs have moved faster than most other line items. In January 2025 the Board of Estimates approved a rate schedule from the Department of Public Works that runs through fiscal 2027:
- Water rose from $3.97 to $4.86 per hundred cubic feet (748 gallons) between early 2025 and July 2026
- Sewer rose from $10.51 to $14.37 per hundred cubic feet over the same period, including a 15% step in February 2025
- Both charges increased 9% on July 1, 2025, and again on July 1, 2026
- Nonresidential stormwater fees climbed from $7.20 to $7.70 per equivalent residential unit
Fixed monthly infrastructure and account charges are added on top of usage, and they scale with meter size. The DPW rates and fees page lists the full schedule. Because the approved schedule ends with fiscal 2027, owners should not assume future increases will be smaller.
For buildings that bill water back to residents, Baltimore’s Water Accountability and Equity Act adds paperwork. Leases must state in writing whether the tenant pays for water. If the owner allocates a share of the bill, the lease must explain the calculation and show the average monthly allocated cost for the prior 12 months. Tenants must also be able to see the account records.
Licensing, registration and inspections
Every non-owner-occupied rental in the city must be registered with the Department of Housing and Community Development each January 1 and licensed. A license requires a passing inspection by a state-licensed home inspector who is registered with the city, and the report must be filed within 90 days. Since January 1, 2026, the Strengthening Renters’ Safety Act has replaced the old one-, two- and three-year tiers with a flat two-year license term, so inspection costs now come around on a predictable schedule.
Registration fees are set in the City Code at $35 per dwelling unit per year for multiple-family buildings and $25 per rooming unit. The same Act created a “priority dwelling” category for buildings of 20 or more units with repeated violations, unabated notices or poor federal inspection scores. Those buildings face DHCD inspections at least twice a year, which means more staff time and repair spending. The city’s summary of the Act lists the triggers.
Older buildings also fall under Maryland’s lead law, which covers rental units built before 1978. Those units must be registered with the Maryland Department of the Environment for $30 per unit per year, and a valid lead inspection certificate is required at each tenant turnover. These requirements stack with the city’s own registration.
Energy, trash and recycling rules
Larger buildings face a few more line items:
- Maryland’s Building Energy Performance Standards apply to buildings of 35,000 square feet or more, including multifamily. They require annual benchmarking, and current law sets direct-emissions targets starting in 2030.
- City trash collection covers only up to 96 gallons per address per week, and addresses that generate more must contract with a private hauler.
- State law requires apartment buildings with 10 or more units to provide recycling collection, with civil penalties of up to $50 per day.
Putting the numbers to work
When a buyer underwrites a Baltimore building, these city-specific costs deserve a line-by-line check against the seller’s operating statements. A practical review covers:
- The tax bill after the next scheduled reassessment, not just the current one
- Water and sewer at fiscal 2027 rates, with room for further increases
- License renewal dates, inspection reports and lead certificates for every unit
- Whether the building is near the 20-unit priority-dwelling threshold or the 35,000-square-foot energy standard
Our NOI calculator can show how these expenses flow through to net operating income, and the Maryland market overview compares conditions statewide. Owners who are exploring selling an apartment building in Baltimore can see how we look at properties in the city.
