What it costs to own a home in Maryland
A median-priced Maryland home costs about $2,749 a month to own with 20% down at today's 6.65% thirty-year rate. That covers $2,295 of principal and interest, $343 of property tax and $112 of homeowners insurance. Staying inside the 28% front-end ratio lenders use takes a household income of roughly $117,835 a year.
- Median home price
- $446,900
- Monthly cost
- $2,749
- Income needed
- $117,835
- Property tax rate
- 0.92%
What sets the payment in Maryland?
| Input | Maryland | Context |
|---|---|---|
| Effective property tax rate | 0.92% | 21st highest of 51 |
| Median home price | $446,900 | 18th highest of 51 |
| Average annual premium | $1,300 | on a $250k dwelling |
| Assessment cap | 10%/yr | assessed value cannot rise faster than this |
| Price level vs national | 105.0 | BEA price parity, 100 = US average |
| Appreciation, past year | +1.67% | FHFA index |
| Appreciation, past five years | +36.4% | FHFA index |
What makes Maryland different
Maryland is two housing markets wearing one set of statewide averages. The Washington suburbs — Montgomery, Prince George's, Howard, Frederick — carry a substantial wage premium and price level, and the calculator applies it when a ZIP code resolves into the Washington metro. Baltimore, the Eastern Shore and Western Maryland do not, and a statewide figure sits awkwardly between them.
The more interesting number is the appreciation. Maryland gained about 36% over five years against a national figure closer to 48%, and only 1.67% over the past year, despite prices well above the national median. For a state anchored to the federal government's payroll that is a meaningful signal: the DC-area housing market has been flat in real terms for several years while much of the country ran. Anyone who bought in the Washington suburbs since 2021 will find the equity here is overwhelmingly principal paid rather than market gain.
The Homestead Tax Credit caps taxable assessment increases at 10% a year statewide, but counties and municipalities may and often do set lower caps for their own portion of the bill, some considerably lower. Assessments run on a three-year cycle, so a reassessment year can move an escrow payment sharply in one step rather than gradually.
How much income do you need to buy a house in Maryland?
All four rows buy the same $446,900 house at today's 6.65% rate. The difference is entirely the down payment and the mortgage insurance it does or does not trigger.
| Down | Cash at closing | P&I | PMI | Total monthly | Income needed |
|---|---|---|---|---|---|
| 3.5% down | $15,642 | $2,769 | $341 | $3,564 | $152,755 |
| 5% down | $22,345 | $2,725 | $248 | $3,427 | $146,892 |
| 10% down | $44,690 | $2,582 | $154 | $3,191 | $136,738 |
| 20% down | $89,380 | $2,295 | — | $2,749 | $117,835 |
What is a Maryland home bought in 2020 worth now?
Working backwards from today's median along the FHFA path for Maryland: what that same house would have cost at the time, the rate available then, and where the loan and the equity stand today at 20% down.
| Bought | Price then | Rate | P&I | Balance now | Equity now |
|---|---|---|---|---|---|
| Mid-2010 | $223,115 | 4.74% | $930 | $113,075 | $333,825 |
| Mid-2015 | $247,150 | 3.98% | $942 | $149,581 | $297,319 |
| Mid-2018 | $284,676 | 4.57% | $1,163 | $192,646 | $254,254 |
| Mid-2020 | $315,684 | 3.16% | $1,087 | $218,150 | $228,750 |
| Mid-2022 | $386,825 | 5.52% | $1,761 | $290,538 | $156,362 |
| Mid-2024 | $427,165 | 6.92% | $2,255 | $333,775 | $113,125 |
How do wages vary across Maryland?
Wages track local price levels closely. These are the metropolitan areas in Maryland the calculator recognises from a ZIP code, and the pay adjustment it applies to national occupation wages there.
| Metro area | Price level | Pay adjustment |
|---|---|---|
| Washington-Arlington-Alexandria | 111.6 | +16% |
| Baltimore-Columbia-Towson, MD | 105.2 | +7% |
Run a real address. These are state medians. Put in an actual Maryland address, the date it closed and the price paid, and the calculator will work out that home's payment, its mortgage-insurance dates and the equity behind it.