In Maryland, the median home costs $415K and the median household income is $103K/year. Find out how much house you can afford based on your income, debts, and down payment. Formula shown, sources cited — no account required.
A median home price of $415,000 against the nation's second-highest median household income of $102,905 produces a price-to-income ratio of roughly 4.0 — right at the edge of conventional affordability. A 12% down payment requires $49,800, and closing costs at 2.5% add another $10,375, totaling about $60,175 in upfront cash. That is a substantial barrier to entry even for higher-income buyers who have not yet accumulated significant savings. Property taxes at 1.09% add about $377 per month to housing costs. Competition is fierce in desirable suburbs, with multiple-offer situations common in spring and summer markets around DC, Annapolis, and the Baltimore Metro. The MMP 1st Time Advantage program can provide below-market rates for qualifying first-time buyers, improving monthly payment affordability slightly. The House Keys 4 Employees program also offers down-payment assistance through participating employers, which can reduce the upfront cash burden for qualifying workers. Buyers who stretch their budget to the maximum qualifying amount leave themselves exposed to any income disruption. Use the home affordability calculator to find the price that keeps your monthly payment to a manageable share of take-home income.
How Much House Can You Afford in Maryland?
Lenders typically use the 28/36 rule: your monthly housing payment should not exceed 28% of gross monthly income, and total debt payments should stay under 36%. With Maryland's median income of $102,905/year ($8,575/month), that means a maximum housing payment of roughly $2,401/month.
At 6.51% over 30 years with a 12% down payment ($49,800), that monthly budget supports a purchase price of approximately $394,250–$415,000. The median home price in Maryland is $415,000, which means housing is near the national average.