Three-Bedroom
For Sale
$320,000
538 Summit Avenue, Hagerstown, MD 21740
Two residential units offer rear off-street parking and RMOD zoning within city limits.
Property Size3,026 SF
Price / SF$105.75
Days on Market133
Property Features for 538 Summit Avenue
General Information
Standard status
Active
Size
3,026 SF
Property subtype
Multi-Family / Fee Simple
Zoning
RMOD
Units
Unit Mix
2 x 3BR/1BA
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$2,025
Amenities
No
Doors - Swing In
No Pool
Building Details
Year Built
1903
Listing Agency:
Weichert, REALTORS
(202) 538-3014
Listed By:
Sonia P Benperlas · License #615511
(202) 538-3014
Source:
Compass
Added: Apr 21
Changed: Aug 30
Last Checked: Aug 30 at 11:37PM
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 Weichert, REALTORS
Investment Insights
Based on property information with market context.
This duplex contains two residential units, each arranged with three bedrooms and one full bathroom. The property includes 3,026 square feet and was built in 1903. Interior documentation identifies swing-in doors, while the exterior includes no pool. The sale is offered in as-is condition.
Located at 538 Summit Avenue in Hagerstown, the property is within city limits and provides street parking along with additional off-street spaces at the rear. The two unit addresses are 538 and 540, creating a clearly defined duplex configuration. RMOD zoning is reported for the property.
Located at 538 Summit Avenue in Hagerstown, the property is within city limits and provides street parking along with additional off-street spaces at the rear. The two unit addresses are 538 and 540, creating a clearly defined duplex configuration. RMOD zoning is reported for the property.
Key Highlights
- Two units, each with 3 bedrooms and 1 full bathroom
- 3,026 square feet across the duplex
- RMOD zoning within Hagerstown city limits
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
$28,479
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
8.90%
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%
$569,580
$569.6K
Cap Rate 7%
$406,843
$406.8K
Cap Rate 9%
$316,433
$316.4K
Market Conditions
NOI Build-Up for 3,026 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
$55.6K $18.36/SF
− Vacancy
−$3.8K −$1.25/SF
EGI
$51.8K $17.11/SF
− OpEx
−$23.3K −$7.70/SF
NOI
$28.5K $9.41/SF
Area
Washington County, MD
Vacancy
6.80%
Lease Rate
$18.36 /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%
$569,580
Cap Rate 7%
$406,843
Cap Rate 9%
$316,433
Alternative Uses
Best Use
Multifamily LT 5
$453.4K
$396.8K – $529.0K
NOI $31,741 @ 7.0% cap · market cap 9.92%
Second Best
Apartment 5plus
$406.8K
$356.0K – $474.7K
NOI $28,479 @ 7.0% cap · market cap 8.90%
Theoretical Best
Office A
$671.2K
$587.3K – $783.1K
NOI $46,986 @ 7.0% cap · market cap 14.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
581
Businesses Nearby
Explore this area
Business Placement
Demographics for 21740, MD
65,619
Population
27,002
Households
2.4
Avg Household Size
39
Median Age
20%
College-Educated
86%
High-School Grad
70.9 sq mi
ZIP Area
926
Density / Sq Mi
$59,410
Median Household Income
$42,159
Median Earnings
$1,031
Median Rent
$241,600
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Two residential units offer rear off-street parking and RMOD zoning within city limits.
Where is this duplex located?
The property is located at 538 Summit Avenue Hagerstown, MD.
What is the asking price?
The asking price for this property is $320,000.
What are key features of this property?
This property features: Two units, each with 3 bedrooms and 1 full bathroom; 3,026 square feet across the duplex; RMOD zoning within Hagerstown city limits
