Income needed to buy a house in Maryland
A median-priced home in Maryland costs $436,300. With 20% down you'd need about $118,716 a year, $15,811 more than the state's median household income of $102,905. Maryland ranks #38 of 51 for the lowest income needed.
Income needed: $118,716 a year
Defaults: state median home value and property tax (Census ACS 2024), median homeowners insurance paid by owners with a mortgage (Census ACS 2024; quotes vary by home and ZIP code), 30-year rate 6.95% (Freddie Mac, week of 2026-09-17).
You'd need a household income of about $118,716 a year to buy a $436,300 home in Maryland with $87,260 down.
Based on lenders' 28/36 rule: housing costs under 28% of gross income, all debt under 36%.
| Monthly cost | Amount |
|---|---|
| Principal & interest | $2,310 |
| Property tax | $345 |
| Homeowners insurance | $114 |
| Total | $2,770 |
Monthly cost by down payment
| Down payment | Cash down | Monthly cost | Income needed |
|---|---|---|---|
| 5% | $21,815 | $3,376 | $144,684 |
| 10% | $43,630 | $3,222 | $138,106 |
| 20% | $87,260 | $2,770 | $118,716 |
Under 20% down includes estimated private mortgage insurance of 0.5% of the loan per year.
Buying in Maryland: what's different
- Transfer tax
- 0.5% state + county taxes
- On the median home
- $2,180
- Homestead break
- 10% (or lower) assessment cap
- First-time buyer help
- Maryland Department of Housing and Community Development
- Transfer and recording taxes. The state transfer tax is 0.5%, and counties add a recordation tax and, in most counties, their own transfer tax. For a first-time Maryland buyer who will live in the home, the state tax drops to 0.25% and the seller pays all of it. On the median Maryland home ($436,300), that's about $2,180 in state transfer tax.
- Property tax breaks for your home. The Homestead Tax Credit limits the yearly increase in your main home's taxable assessment to 10% for state tax, and most counties and cities set a lower cap. Apply once with the State Department of Assessments and Taxation.
- First-time buyer help. The Maryland Department of Housing and Community Development offers 1st Time Advantage through participating lenders (part of the Maryland Mortgage Program). Check its site for income and price limits.
Checked against official sources on September 25, 2026. Local transfer taxes and exemptions vary, so confirm with the county before you close.
Home prices in the Maryland metro areas we cover
| Metro area | Income needed | Median home value | Median household income |
|---|---|---|---|
| Baltimore, MD | $110,384 | $403,000 | $98,666 |
| Washington, D.C. (39% in MD) | $160,826 | $604,800 | $126,244 |
With 20% down, the median home takes about $110,384 a year in the Baltimore area and $160,826 in the Washington, D.C. area, compared with $118,716 for the statewide median.
Metro medians from Census ACS 2024 cover the whole metro area, including any part in a neighboring state. The metro area centered in Washington, DC is included because many of its residents live in Maryland; the share in the state is in parentheses. Rows are ordered by how many residents live in Maryland. Income needed: 20% down at 6.95%, the metro's median property tax and its main state's median homeowners insurance for homes with a mortgage (Census ACS 2024), under the 28% rule.
What makes owning in Maryland more expensive than most states
- Home prices: the median value of $436,300 is 21% above the U.S. median of $360,600.
- Property tax: about 0.95% of value a year ($345 a month on the median home).
- Insurance: owners with a mortgage paid a median $1,371 a year for homeowners insurance in 2024 (Census ACS). Premiums have risen in most states since then, and they vary a lot by home and ZIP code, so get quotes.
- Mortgage rate: each 1-point rise in rates adds roughly $239 a month on this loan.
28 states need at least 20% less income to buy their median home. States with a similar income requirement:
- Connecticut $119,521
- Nevada $114,677
- Montana $112,817
- Idaho $112,251
- Rhode Island $127,223
- Florida $109,667
Frequently asked questions
How much do you need to make to buy a house in Maryland?
About $118,716 a year for the median home of $436,300 with 20% down at 6.95%. With 10% down it's about $138,106.
What is the property tax rate in Maryland?
The median Maryland homeowner pays $4,144 a year, about 0.95% of the median home value (Census ACS 2024). Rates vary by county and city.
Is it cheaper to rent or buy in Maryland?
Median rent is $1,721 a month, while owning the median home costs about $2,770 a month with 20% down, before maintenance. Renting affordably takes about $68,840 a year under the 30% rule.