Cost of Living in Maryland: Average Rent, Groceries, Utilities, and More

Maryland offers a mix of coastal charm and metropolitan convenience, but living here comes with a range of expenses that typically require a larger budget. The cost of living in Maryland tends to be above the national average, with everything from housing and groceries to transportation adding up. Whether you’re considering apartments in Baltimore or homes in Rockville, Maryland’s diverse regions offer both affordable and more upscale living options. While expenses can vary depending on where you settle, the state’s proximity to Washington, D.C., rich history, and access to the Chesapeake Bay make it a unique place to live.

Housing costs: Median home prices and average rent in Maryland

Housing costs in Maryland offer some relief compared to other high-cost states. With the average rent in Maryland at $1,580, it falls slightly below the national average of $1,645. However, this can vary greatly depending on where you decide to move to in Maryland. For instance, urban hubs like Baltimore offer a mix of more affordable apartments alongside pricier downtown areas. Meanwhile, suburban or rural areas of Maryland might offer lower housing costs, though home prices remain higher in places like Bethesda or Silver Spring. While housing is a significant part of the cost of living in Maryland, it tends to be more manageable compared to neighboring states like Virginia or D.C.

MD housing costs: Average rents and median home sale prices

Housing costs in popular cities in Maryland

Annapolis

Living in the state capital comes with a price. The average rent in Maryland may be $1,580, but apartments in Annapolis soar well above that, with one-bedroom units averaging $2,230 and two-beds hitting $2,795. On the homebuying side, the median home price in Annapolis is a substantial $651,500, far exceeding the national median of $439,000. Known for its waterfront charm and rich history, Annapolis draws in residents willing to pay for that picturesque lifestyle along the Chesapeake Bay.

Baltimore

Baltimore’s housing market is a mixed bag, but overall, it’s more budget-friendly compared to other parts of Maryland. Apartments in Baltimore average around $1,630 for a one-bedroom and $1,800 for a two-bedroom, which is just a little above the state average. For homebuyers, Baltimore is considerably more affordable, with the median home price sitting at just $229,000—well below the national median sale price of $439,000. The city’s diverse neighborhoods offer a range of housing options, making it a popular choice for those seeking more affordable urban living.

Bethesda 

Bethesda is a high-end Maryland enclave, and housing costs here show it. The average rent for a one-bedroom is $2,430, climbing to $3,740 for a two-bedroom. Prices for homes in Bethesda soar as well, with the median around $1.3 million, over double the national median. With its upscale amenities, top-rated schools, and close proximity to Washington, D.C., Bethesda’s housing prices reflect its reputation as one of the state’s most desirable—and costly—areas to call home.

Elkton

In contrast, Elkton offers a more accessible housing market. The average rent is $1,100 for a one-bedroom and just $1,225 for a two-bed, making it one of the most affordable areas compared to the average rent in Maryland. Buying a home in Elkton is also easier on the wallet, with the median home price around $357,500, still under the national median. Elkton’s small-town vibe and location near the Pennsylvania border make it a popular choice for those looking for a quieter lifestyle without breaking the bank.

Rockville

Rockville is another D.C. suburb where we see the cost of living in Maryland hit a high. The average rent here reaches $2,250 for a one-bedroom and $2,790 for a two-bedroom, far surpassing the average rent in Maryland of $1,580. Home prices here follow suit, with a median sale price of $670,000, notably higher than the national median. Known for its job market, schools, and quick metro access to Washington, Rockville is a draw for commuters willing to pay for convenience and an affluent suburban lifestyle.

Utility costs in Maryland

In Maryland, utility costs play a notable role in the overall cost of living due to seasonal fluctuations and the state’s array of older, historic homes. Residents can generally expect to pay for essentials like electricity, water, gas, internet, and waste services, with landlords sometimes bundling these into rental prices. Utility costs in Maryland fall close to the national average or slightly higher in certain areas of the state. Maryland’s climate—a mix of humid summers and chilly winters—also drives seasonal variations in heating and cooling costs. For those in areas with older homes, like Baltimore and Annapolis, utility costs may run higher. Aging structures often lack modern insulation or energy-efficient windows, which can lead to elevated energy bills, especially during peak weather months. Some renters may find these additional expenses reflected in the average rent in Maryland, particularly in historic districts, making it essential to account for potential utility costs to get a full picture of living expenses across the state.

Energy bill comparisons: Maryland cities vs. nationwide average

Grocery costs in Maryland

On average, groceries cost about 3% less in Maryland compared to the US national average. Prices can vary by region, with urban centers like Baltimore seeing a loaf of bread priced at $4.17, above the national average of $3.97. Eggs are also relatively affordable in Baltimore, averaging $3.58, which is slightly higher than the national average of $3.47. While shoppers in pricier areas like Annapolis or Bethesda may face higher costs, overall grocery shopping remains manageable and reflects the broader cost of living in Maryland

Transportation costs in Maryland

Transportation costs in Maryland can vary significantly depending on your location and commuting habits. Maryland residents often rely on a mix of public transit, personal vehicles, and ridesharing services to navigate their daily routines. Residents who rely on cars will face costs like gas, insurance, and maintenance, all of which can add up quickly, especially in congested metro areas like Baltimore or the D.C. suburbs. Gas prices in Maryland tend to hover close to the national average, but insurance rates can be higher, particularly in urban areas.

For those commuting into D.C. or surrounding suburbs, public transportation offers some relief. Maryland’s MARC train system, Metro rail, and local bus networks provide accessible and affordable options, especially for workers looking to avoid parking costs and D.C.’s heavy traffic. Monthly passes for Metro services can run around $100–$200 depending on the commute distance, adding to monthly expenses for frequent riders. Additionally, Maryland’s network of toll roads—such as I-95, the ICC, and the Chesapeake Bay Bridge—can tack on costs, especially for those with longer and frequent commutes. Overall, transportation costs are an important consideration in the cost of living in Maryland, with expenses influenced by personal choices, location, and commuting needs.

Taxes in Maryland

Taxes contribute significantly to the cost of living in Maryland and can vary widely depending on location, income, and property values. Maryland’s progressive income tax system spans from 2% to 5.75%, with additional local taxes that can add up to 3.2% in some areas, making income tax a notable aspect to factor in. Sales tax is a flat 6% across the state, which is slightly below the U.S. average range of 5% to 7%. For homeowners, property taxes average around 1.1%, though they can vary by county—particularly in pricier areas like Montgomery County. Altogether, Maryland’s tax structure impacts the cost of living considerably, with varying degrees of impact based on individual income, property ownership, and local tax rates.

Healthcare costs in Maryland

Healthcare costs in Maryland are generally on par with national averages, though they can vary based on location and individual coverage options. For instance, in the Bethesda area, a dental visit averages around $121.50, while a doctor’s appointment costs about $158.77. In contrast, the Baltimore area offers slightly lower prices, with a dental visit at $114.08 and a doctor’s appointment at $139.74. Prescription drug costs also reflect this variability, averaging $213.38 in Bethesda compared to $195.37 in Baltimore. While these figures align with national averages—$115.50 for dental visits, $140.46 for doctor visits, and $243.86 for prescription drugs—healthcare expenses in Maryland can vary significantly based on individual insurance plans and personal health needs. As a result, some may find healthcare more affordable, while others may encounter higher costs depending on their specific medical requirements and coverage.

How much do I need to earn to live in Maryland?

To live comfortably in Maryland, it’s a good idea to follow the 30% rule, which suggests spending no more than 30% of your income on rent. With the average rent in Maryland at around $1,580, you should aim to earn about $5,267 a month, or roughly $63,200 a year. However, since the cost of living varies across different Maryland cities, the income needed can fluctuate significantly. In high-rent areas like Bethesda or Annapolis, you’ll need to earn even more, while more affordable regions may require a lower income. Ultimately, your income needs depend not just on rent but also on your lifestyle and other essential expenses like transportation, utilities, and healthcare, too.

Methodology

Average 1-bedroom and 2-bedroom rent sourced from Rent. Median home sale price, state average monthly rent, national rent prices, and cost of living data sourced from Redfin.