Rental conversions in Hagerstown
The closest published price is from York, Pennsylvania, where a new detached accessory dwelling unit cost $153,7801 in the 2025 Cost vs. Value report; an apartment carved out of an existing basement or upper floor has no published local price. The bigger local factor is the rulebook, which changes at the city line: Washington County has allowed accessory dwelling units since late 2025, while inside Hagerstown, where 57%2 of occupied homes are rented, the city's own rule was still a proposal when we checked.
Calls are recorded. One independent company that handles rental conversions in the Hagerstown area answers.
Updated October 12, 2026

How much of the area rents, and for what
What share of households rent on each side of the city line, and the typical monthly rent with utilities, per the Census:
| Measure | City of Hagerstown | Washington County |
|---|---|---|
| Homes occupied by renters | 57%2 | 33%2 |
| Median gross rent, per month | $1,1143 | $1,1473 |
More than half of city households rent, against a much smaller share countywide, yet the median rent is close on both sides of the line. Check what similar units on your street actually lease for before you borrow for a conversion.
What's already been split
The Census counts homes by how many units share the building. Small two- to four-unit buildings and attached houses are both far more common inside the city:
| Measure | City of Hagerstown | Washington County |
|---|---|---|
| Homes in buildings with two to four units | 14%4 | 7%4 |
| One-unit attached homes, such as rowhouses | 30%4 | 15%4 |
A neighbor's duplex doesn't mean your lot can add a unit. The zoning district and the type of house decide that, and both the county's ADU rule and the city's proposal leave out attached houses.
How old the rental stock is
Year built matters more for a rental than for your own house, because of Maryland's lead law. Census counts for the city and county:
| Measure | City of Hagerstown | Washington County |
|---|---|---|
| Homes built before 1940 | 32%5 | 19%5 |
| Homes built before 1980 | 67%5 | 57%5 |
Maryland requires residential rental properties built before 1978 to be registered with the Department of the Environment every year, at $30 per unit, and to get a new lead inspection certificate at each change of occupancy.6 With most city homes dating from before 1980, plan for lead registration and a lead inspection unless an inspection shows the paint is clear.
What a new unit costs in the nearest surveyed market
Cost vs. Value prices a new detached accessory unit and a basement finish, but not an apartment built inside an existing house. York, Pennsylvania, figures from 2025:
| Measure | York, PA | U.S. average |
|---|---|---|
| Accessory dwelling unit (new detached build), job cost | $153,7801 | $166,4067 |
| Accessory dwelling unit (new detached build), resale value | $51,8131 | $68,6567 |
| Basement remodel, job cost | $46,4221 | $52,0127 |
No survey prices a basement apartment on its own. Expect it to run above the basement family room, because it adds a kitchen, a separate entry and a fire-rated ceiling.
What homes here are worth
A conversion is often financed against the house, so its value sets how much you can borrow. Census medians:
Permits
Outside the city, an accessory dwelling unit goes through address, zoning and ADU review at the county before the usual trade permits, and the county's ADU rules set the size, the lots that qualify and a sprinkler requirement. Inside city limits, a new unit is a renovation that changes the floor plan, so it needs a city building permit, plumbing and electrical permits from registered tradespeople, and a contractor license once a building reaches three dwellings.
- Washington County's Division of Permits and Inspections does not process permits for properties inside Hagerstown city limits.9
- Washington County allows ADUs in the AR, EC, P, RV, RT, RS, RU, RM, RB, BL, BG and HI zoning districts, but not on lots with semi-detached dwellings, townhouses or multi-family dwellings.10
- A Washington County ADU may not be used as a short-term rental, can't be subdivided off or sold separately from the main house, and needs one parking space.10
- Washington County requires a sprinkler system in an attached or detached ADU, except that a basement or attic converted into an ADU is exempt when the existing house is not sprinklered.10
- Hagerstown's building permit list includes renovations involving structural changes, fire-rated construction or changes in floor plans.11
- A Hagerstown homeowner who lives in the house may apply for mechanical permits, but electrical and plumbing permits must be applied for by a City-registered electrician or plumber.12
- The City of Hagerstown requires a city contractor license for projects on commercial-use property, for all signs and for all structures with 3 or more dwellings.11
Checked October 12, 2026
Before you hire
Ask for the company's Maryland Home Improvement Commission (MHIC) license number and look it up yourself, because Maryland's Guaranty Fund only steps in for work done by MHIC-licensed contractors.
Talk to a pro who handles rental conversions in Hagerstown
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Accessory dwelling units in Washington County
Washington County's commissioners approved an ordinance allowing accessory dwelling units on October 14, 2025; an ADU may be attached, which the county says includes interior renovations, additions and finished basements or attic space, or detached.10 In Washington County an ADU may be no larger than 75 percent of the main house's gross floor area or 1,200 square feet, whichever is less, but that limit does not apply to a finished basement or converted attic.10
Washington County allows ADUs in the AR, EC, P, RV, RT, RS, RU, RM, RB, BL, BG and HI zoning districts, but not on lots with semi-detached dwellings, townhouses or multi-family dwellings.10 A Washington County ADU may not be used as a short-term rental, can't be subdivided off or sold separately from the main house, and needs one parking space.10
For an attached ADU or an interior conversion in Washington County, the contractor needs a Maryland Home Improvement Commission license, and ADUs are exempt from the county's excise tax, though other permit fees apply.10 Washington County requires a sprinkler system in an attached or detached ADU, except that a basement or attic converted into an ADU is exempt when the existing house is not sprinklered.10 The county's guidance memo is from July 2026, so confirm the details with the Division of Permits and Inspections before paying for drawings.
Inside Hagerstown city limits
Maryland's HB 1466, passed in 2025, requires every county and municipality with planning and zoning authority to adopt a local law allowing ADUs on lots with a single-family detached house by October 1, 2026.13 Hagerstown planning staff proposed in 2026 to permit one accessory dwelling unit, no larger than 75 percent of the main house, on a property with one single-family detached house, to meet a state law that expects local rules by October 1, 2026; the proposal does not apply to semi-detached houses, two-family dwellings, townhouses or apartment buildings.14
Under the city's proposal, an accessory dwelling unit must meet all building, fire and housing codes without waiver, goes to the Historic District Commission when the property is in a district it reviews, can't be built in an accessory building reached only by an alley, and needs no added on-lot parking.14 When we checked, the zoning code posted on the city's site didn't yet include this section, so ask the planning office what applies to your lot on the day you apply.
Larger older houses have another route. Hagerstown allows mansion house apartments in existing buildings in locally designated historic districts in the RMED, RO and CC-MU districts only if the building went up before October 1, 1956, has at least 4,000 square feet and holds no more than one unit per 1,000 square feet of floor area, with off-street parking the Board of Zoning Appeals cannot waive.15 Every new dwelling unit created in the City of Hagerstown since April 24, 2020 must have at least 400 square feet of finished living area for an efficiency, 500 for one bedroom, 650 for two and 900 for three or more; in existing buildings the Zoning Administrator may allow reductions of up to 15 percent if another new unit is larger by the same amount.15
City rental licenses and inspections
Owners who rent units to tenants in the City of Hagerstown must register them in the city's rental licensing program, with a signed application, a supplemental lead paint form and a nonrefundable annual license fee of $75 per rental unit.16 Hagerstown's rental licensing program exempts 'owners-plus-one' properties, where the owner lives in part of the building and there is no more than one rental unit.16 That exemption fits an owner who lives in the house and rents out one apartment, but not a second unit in a house you don't live in.
Hagerstown inspects licensed rentals from the outside every year and inside every 48 months, at a change of tenant.16 Hagerstown's interior rental inspection, which only the owner or agent can request, at least three business days before a new tenant moves in, focuses on working smoke detectors, emergency exits, ceiling height, ventilation and electrical hazards.17 Schedule that inspection after the construction inspections are signed off, since the inspector will look at the same alarms, exits and ceiling heights.
Short-term rentals
Hagerstown's Lodging Facilities Licensing program, approved in 2023 and revised in 2024, covers short-term rentals, meaning a residential unit or a room in a dwelling rented for less than 30 consecutive days through platforms such as Airbnb or VRBO, with inspections by the city's housing, permits and fire departments.18
In the county, an ADU can't be used that way at all. Washington County's 2021 zoning amendment defines a short-term residential rental as a non-owner-occupied residential structure that provides temporary lodging to transient guests for compensation, for stays of no more than 30 consecutive days per reservation, with off-street parking required.19 Decide early whether the unit is for a long-term tenant, a relative or guests, because the answer changes which rules apply.
Lead, fire separation and a way out
EPA's lead renovation rule generally doesn't cover homeowners working on their own pre-1978 homes, but it does apply if you rent out all or part of your home.20 A landlord who does renovation work on pre-1978 rental housing personally needs both EPA firm and renovator certification; a landlord who hires the work out needs neither, but the firm must be Lead-Safe Certified.21
The 2021 IRC requires the units of a two-family dwelling to be separated by walls and floors with at least a 1-hour fire-resistance rating, or a 1/2-hour rating if the building has an automatic sprinkler system throughout.22 In a basement unit, the floor above is usually that separation, so expect a fire-rated ceiling.
The 2021 IRC requires at least one egress door for each dwelling unit, reached by a continuous path that does not pass through a garage, and opening to a public way or a yard or court that leads to one.22 The 2021 IRC requires smoke alarms in each sleeping room, outside each separate sleeping area and on every story including basements, interconnected within each dwelling unit so that one sounding sets off all of them.22
A unit for a parent or relative
Some conversions house family rather than tenants. More than one in four adults 65 and older fall each year.23 In Washington County, 33%224 of owner-occupied homes are headed by someone sixty-five or older.
For an aging parent, a split-level's lower floor often has the advantage of a near-grade side door. Keep that entry free of steps, give the bath a curbless shower and a wide door, and skip a layout that depends on an outside stair. NAHB's Certified Aging-in-Place Specialist (CAPS) credential trains remodelers in home modifications for aging in place.25
What happens when you call
Calling the number on this page connects you on a recorded line with one independent company that handles rental conversions in the Hagerstown area. The unit, the construction and the price are things you discuss with them directly.
That company pays us for putting you through. You owe us nothing, and nobody from our side will call or text you. How we make money
After you're connected
Check the company's license on the state's own site before you sign a contract. Maryland's Home Improvement Commission licenses home improvement contractors and salespersons, and its License Search shows whether a license is current.26 Check a Maryland license
Questions people ask
Can I add an apartment to my house in Washington County?
In many zoning districts, yes, if the house is detached. Washington County allows ADUs in the AR, EC, P, RV, RT, RS, RU, RM, RB, BL, BG and HI zoning districts, but not on lots with semi-detached dwellings, townhouses or multi-family dwellings.10 In Washington County an ADU may be no larger than 75 percent of the main house's gross floor area or 1,200 square feet, whichever is less, but that limit does not apply to a finished basement or converted attic.10
Can I add one inside Hagerstown city limits?
The city was still working on its accessory dwelling rule when we checked. Hagerstown planning staff proposed in 2026 to permit one accessory dwelling unit, no larger than 75 percent of the main house, on a property with one single-family detached house, to meet a state law that expects local rules by October 1, 2026; the proposal does not apply to semi-detached houses, two-family dwellings, townhouses or apartment buildings.14 Call the city's planning office with your address before you pay for drawings.
Do I need a rental license in the city?
Usually. Owners who rent units to tenants in the City of Hagerstown must register them in the city's rental licensing program, with a signed application, a supplemental lead paint form and a nonrefundable annual license fee of $75 per rental unit.16 Hagerstown's rental licensing program exempts 'owners-plus-one' properties, where the owner lives in part of the building and there is no more than one rental unit.16
Can I rent the new unit by the night?
Not if it's a county ADU. A Washington County ADU may not be used as a short-term rental, can't be subdivided off or sold separately from the main house, and needs one parking space.10 Inside the city, short-term rentals go through a separate license. Hagerstown's Lodging Facilities Licensing program, approved in 2023 and revised in 2024, covers short-term rentals, meaning a residential unit or a room in a dwelling rented for less than 30 consecutive days through platforms such as Airbnb or VRBO, with inspections by the city's housing, permits and fire departments.18
Sources
Page updated October 12, 2026. How we source our numbers
- Zonda / Journal of Light Construction, Cost vs. Value 2025, York, PA. Released 2025. York, PA (nearest Cost vs. Value market to Hagerstown). Industry source.
- U.S. Census Bureau, American Community Survey 2020–2024 5-year, table B25003. Released January 29, 2026. City of Hagerstown, Washington County, MD.
- U.S. Census Bureau, American Community Survey 2020–2024 5-year, table B25064. Released January 29, 2026. City of Hagerstown, Washington County, MD.
- U.S. Census Bureau, American Community Survey 2020–2024 5-year, table B25024. Released January 29, 2026. City of Hagerstown, Washington County, MD.
- U.S. Census Bureau, American Community Survey 2020–2024 5-year, table B25034. Released January 29, 2026. City of Hagerstown, Washington County, MD.
- Maryland Department of the Environment, Lead Registration. No publication date. View source.
- Zonda / Journal of Light Construction, Cost vs. Value 2025, national. Released 2025. United States. Industry source.
- U.S. Census Bureau, American Community Survey 2020–2024 5-year, table B25077. Released January 29, 2026. City of Hagerstown, Washington County, MD.
- Washington County Division of Permits and Inspections, Citizen Access User Guide for Permitting. Released August 2025. View source.
- Washington County Division of Permits and Inspections, Accessory Dwelling Unit (ADU) Policy memo, Becky Gander, Chief of Permitting. Released July 9, 2026. View source.
- City of Hagerstown Department of Engineering & Permits, Building Permits. No publication date. View source.
- City of Hagerstown Department of Engineering & Permits, Permits FAQs. No publication date. View source.
- Maryland Department of Planning, Accessory Dwelling Units. No publication date. View source.
- City of Hagerstown Department of Planning & Economic Development, 2026 Land Management Code Amendment Proposals, ZT-2026-02 Group Package of Proposals 1 through 26. Released May 14, 2026. View source.
- City of Hagerstown Department of Planning & Economic Development, Land Management Code (Chapter 140), Article 4: Zoning, v3.12. Released June 26, 2025. View source.
- City of Hagerstown Department of Housing & Community Development, Rental Licensing. No publication date. View source.
- City of Hagerstown Department of Housing & Community Development, Rental Licensing Inspections. No publication date. View source.
- City of Hagerstown Department of Housing & Community Development, Lodging Facilities Licensing. No publication date. View source.
- Washington County Government, Board of County Commissioners Approve Update to Ordinance for Short-Term Residential Rentals. Released July 14, 2021. View source.
- U.S. Environmental Protection Agency, Lead Renovation, Repair and Painting Program. Released June 17, 2026. View source.
- U.S. Environmental Protection Agency, RRP frequent question: landlords of pre-1978 apartments. Released November 12, 2025. View source.
- International Code Council, 2021 International Residential Code, Chapter 3 Building Planning. Released 2021. View source. Industry source.
- Centers for Disease Control and Prevention, Facts About Older Adult Falls. Released September 4, 2026. View source.
- U.S. Census Bureau, American Community Survey 2020–2024 5-year, table B25007. Released January 29, 2026. Washington County, MD.
- National Association of Home Builders, Certified Aging-in-Place Specialist (CAPS). No publication date. View source. Industry source.
- Maryland Department of Labor, Maryland Home Improvement Commission. No publication date. View source.