Renovated Short-Term Rental
For Sale
$395,000
401 SOUTH MARKET STREET UNIT #1, Frederick, MD 21701
Main-level condominium with deeded parking and current short-term rental use near downtown amenities.
Property Size925 SF
Price / SF$427.03
Days on Market60
Property Features for 401 SOUTH MARKET STREET UNIT #1
General Information
Standard status
Active
Size
925 SF
Total Parking Spaces
2
Property subtype
Apartment
Units
Unit Mix
1 x 2BR/1BA
Multifamily Units
1
Additional Details
Road Access
Yes
Building Details
Building Size
925 SF
Year Built
1871
Listing Agency:
Frederick Land & Home, LLC.
(301) 662-9222
Listed By:
Aaron J Marsh
(301) 662-9222
Source:
Cindee.kw
Added: Jul 2
Changed: Aug 28
Last Checked: Aug 29 at 5:45AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Frederick Land & Home, LLC.
Investment Insights
Based on property information with market context.
This renovated main-level condominium offers approximately 925 +/- square feet with two bedrooms, one full bathroom, and an open floor plan. The property is currently used as an Airbnb, with the option for a new owner to continue short-term rental operations or occupy the residence after settlement. Two deeded parking spaces are included.
The condominium is part of the historic South on Market Street project, built in 1871. Its address places the property across from the Maryland School for the Deaf and within walking distance of downtown Frederick, Carroll Creek Promenade, Baker Park, the library, restaurants, shopping, festivals, and Frederick Keys BallPark. The setting also provides access to local breweries and downtown nightlife.
The condominium is part of the historic South on Market Street project, built in 1871. Its address places the property across from the Maryland School for the Deaf and within walking distance of downtown Frederick, Carroll Creek Promenade, Baker Park, the library, restaurants, shopping, festivals, and Frederick Keys BallPark. The setting also provides access to local breweries and downtown nightlife.
Key Highlights
- 925 +/- square feet of living space
- Two bedrooms and one full bath
- Two deeded parking spaces included
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$12,585
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.19%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$251,700
$251.7K
Cap Rate 7%
$179,786
$179.8K
Cap Rate 9%
$139,833
$139.8K
Market Conditions
NOI Build-Up for 925 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$24.1K $26.04/SF
− Vacancy
−$1.2K −$1.30/SF
EGI
$22.9K $24.74/SF
− OpEx
−$10.3K −$11.13/SF
NOI
$12.6K $13.61/SF
Area
Frederick County, MD
Vacancy
5.00%
Lease Rate
$26.04 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$251,700
Cap Rate 7%
$179,786
Cap Rate 9%
$139,833
Alternative Uses
Best Use
Apartment 5plus
$179.8K
$157.3K – $209.8K
NOI $12,585 @ 7.0% cap · market cap 3.19%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$342.8K
$299.9K – $399.9K
NOI $23,993 @ 7.0% cap · market cap 6.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
3,591
Businesses Nearby
Explore this area
Business Placement
Demographics for 21701, MD
39,629
Population
18,914
Households
2.1
Avg Household Size
40
Median Age
50%
College-Educated
95%
High-School Grad
39.7 sq mi
ZIP Area
998
Density / Sq Mi
$102,306
Median Household Income
$59,381
Median Earnings
$1,607
Median Rent
$404,900
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Short term rental property - Main-level condominium with deeded parking and current short-term rental use near downtown amenities.
Where is this short term rental property located?
The property is located at 401 SOUTH MARKET STREET UNIT #1 Frederick, MD.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: 925 +/- square feet of living space; Two bedrooms and one full bath; Two deeded parking spaces included
