Median home: $395,000 | Mortgage rate: 7% | Property tax: 1.07% | Insurance: $1,300/yr
Maryland is a high-income Mid-Atlantic state near Washington D.C.. With a median home price of $395,000 and mortgage rates averaging 7%, understanding what you can afford before house hunting is essential.
The 28/36 rule is the gold standard: spend no more than 28% of gross income on housing and no more than 36% on total debt. In Maryland, with a property tax rate of 1.07% and average insurance of $1,300/year, these costs add significantly to your monthly payment beyond just principal and interest.
A 20% down payment on the median Maryland home requires $79,000. FHA loans with 3.5% down need just $13,825, but you will pay mortgage insurance. Maryland has a Homestead Tax Credit that limits assessment increases to 10% per year.
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Based on the 28/36 rule, your total housing payment should not exceed 28% of gross monthly income, and total debts should stay under 36%. In Maryland, with median home prices at $395,000, you typically need a household income of at least $395,000 to afford the median home.
To afford the median Maryland home at $395,000 with 20% down at 7% interest, you need approximately $90,101 annual household income. This is based on the 28% housing cost guideline.
The median home price in Maryland is approximately $395,000 as of 2026. Prices vary significantly by city and county. Maryland is a high-income Mid-Atlantic state near Washington D.C..
A 20% down payment on the median Maryland home ($395,000) is $79,000. FHA loans allow 3.5% down ($13,825) and VA loans offer 0% down for eligible veterans.
Maryland has a property tax rate of 1.07%, which is near the national average. On the median home, that is $4,227/year. Maryland has a Homestead Tax Credit that limits assessment increases to 10% per year.