Having lived in DC for over 4 years, I know full well what the legal market is here. The issue is that I'd have to wait a year for MD (job transfer) and since I'm already in my late 20's, I'd like to get on w/ my life. Plus, there is no guarantee I'd get a job transfer, so there is a good chance I'd have to take a job that pays less in Baltimore. Finally, my network in DC is real strong and being here would help me network and land internships to beef up my resume.
MD places nearly all grads in MD as one might expect and I don't get the sense MD rep in DC is so strong that if I put my resume in front people with MD on the resume instead of Catholic, that it has a wow factor that will get people's attention.
I understand the debt issue, which is one reason why MD is preferred.