How Much House Can I Afford in Maryland?

Median Home Price

$420,000

Median Household Income

$98,000

Avg Property Tax Rate

1.07%

Avg Insurance/mo

$125

Maryland's housing market is strongly influenced by proximity to Washington DC and major federal employers. Montgomery County (Bethesda, Rockville, Silver Spring, Potomac) has median home prices of $600,000–$900,000+. Prince George's County is significantly more affordable at $370,000–$450,000, making it the primary entry point for DC-area buyers. Baltimore City and suburban Baltimore County offer prices from $280,000 to $500,000 depending on neighborhood.

Maryland's effective property tax rate of 1.07% is close to the national average, but actual bills vary by county and municipality. Montgomery County homeowners often pay lower effective rates due to high assessment values but moderate mill rates; Baltimore City has one of the highest effective rates in the state.

The Maryland Mortgage Program (administered by the Maryland Community Development Administration) offers competitive 30-year fixed rates, down payment assistance of up to $5,000 (Partner Match programs up to $7,500), and various programs targeted at teachers, healthcare workers, and other community pillars. Income limits vary by county.

Homeowners insurance in Maryland averages around $1,500/year ($125/month), which is below the national average. Flooding risk in some low-lying coastal and river-adjacent areas (particularly along the Chesapeake Bay tributaries) may require separate flood insurance. Storm surge risk in coastal Maryland has become a larger concern with sea-level rise.

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Maryland has one of the highest median household incomes in the US, supporting strong home prices.

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DC suburbs (Montgomery County, Prince George's County) are the most expensive markets.

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Maryland Mortgage Program offers down payment assistance and competitive rates for first-time buyers.

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HOA fees are common in Maryland's planned communities and condo developments.

Income

$20K$1.0M

Monthly Debts

$0$5,000

Down Payment

$0$500K
%
050

warningPMI applies — put 20% down to eliminate it

DTI Guideline

Front 30% / Back 40%

You can afford up to

$2,500/month total payment

Constrained by front-end DTI

Budget Range

Conservative → Aggressive
$325K$346K$376K

Debt-to-Income Ratios

22.5%limit 30%

Front-end DTI (housing)

36.0%limit 40%

Back-end DTI (all debts)

Monthly Payment Breakdown

$2,500/month
Principal & Interest
$1,876
Property Tax
$308
Insurance
$125
PMI
$190

Scenario Comparison

Ways to Increase Your Budget

savings

Adding $10K to your down payment could increase your budget by $39K.

+$39K
trending_down

A 0.5% lower rate could expand your budget by $12K.

+$12K
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You're paying $190/mo in PMI. Reaching 20% down eliminates this cost.

Disclaimer: These estimates are for educational purposes only. Actual loan qualification depends on your credit score, lender guidelines, and local market conditions. Consult a licensed mortgage professional before making any financial decisions.

Frequently Asked Questions

What is Maryland's property tax rate?expand_more
Maryland's effective property tax rate averages about 1.07% annually. On a $420,000 home, expect roughly $4,494/year or $375/month in property taxes. Rates vary by county — Montgomery County and Howard County are typically lower than Baltimore City.
What is the Maryland Mortgage Program?expand_more
The Maryland Mortgage Program offers 30-year fixed rate mortgages at competitive rates with down payment assistance up to $5,000 (or more with partner programs) for income-eligible buyers. Income limits vary by county and household size.
What income do I need to buy in the DC suburbs?expand_more
In Montgomery County (Bethesda, Rockville), where median prices are $600,000–$900,000+, household income of $150,000–$250,000 is typically needed to qualify. Prince George's County is more accessible at $90,000–$120,000 for $400,000 homes.

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