How High Is the Cost of Living in Maryland?
The cost of living in Maryland is a bit higher than the national average—but we’ve got the inside scoop on how to save.
Written by Bonnie Stinson
Reviewed by Melanie Reiff
The average cost of living in Maryland is higher than the national figure, primarily due to high housing costs in urban areas. A single adult needs to earn at least $41,000 to live comfortably in Maryland.
From Ocean City and Silver Spring to Frederick and Cumberland, this mid-Atlantic state has a lot to offer. In Maryland, you could live a fast-paced, urban life in proximity to our nation’s capital—or you could become a quiet homesteader tucked into the foothills of Appalachia.
Overall, the cost of living in Maryland is quite high when compared to the national average. But there are still pockets of affordability if you know where to look.
If you’re considering a move, or if you’re just a geek for statistics, keep reading.
Jerry
, the trustworthy super app
created to save drivers money on car and home insurance
, has created this guide to the cost of living in Maryland. Let’s explore!How affordable is the cost of living in Maryland?
You probably know more about Maryland’s famous blue crabs and the wild Assateague ponies than you do about the cost of living here.
The overall cost of living index in the state of Maryland is 113.
The national average is set at 100, which means that any number over 100 means the cost of living is higher than average. Maryland’s COLI of 113 means that cost of living here is quite a bit higher than the average national figure. For comparison, Tennessee’s cost of living index is 87.6 while Indiana’s is 82.1.
The cost of living in Maryland is a lot higher than in most other states.
This overall calculation is the result of many costs, such as the price of food in Maryland, housing rates, transportation fees, and healthcare costs. Let’s explore how much you’ll pay for each of these categories in Maryland when compared with the national average.
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Food: $279.25 to $821.33 per month
Since everyone has to eat, food is considered an essential spending category when calculating cost of living. However, this category only includes take-home groceries. It does not include any money you spend on food outside the home, such as fast food, take-out, or beachside snacks.
The annual cost of food in Maryland ranges from$3,351 to $9,856 according to
MIT’s Living Wage Calculator
. This range takes into account families of various sizes (kids eat a lot!) and averages food prices in different Maryland cities.For instance, a single adult living alone in Maryland should allot about $279.25 per month to their take-home food budget. A household with two adults and two kids in Maryland will pay much more for food: $821.33 each month on average. For comparison, the average monthly grocery bill in the US was $411 in 2020—but prices are increasing every year.
Remember, this category excludes money spent outside the house on food. It does not include the money you spend on Sunday brunch, date night dinners, or drinks with your friends.
Healthcare: $221.50 for an individual per month
In Maryland, the average monthly cost of healthcare per person is $221.50 per month. That’s a lot lower than the national average, which is $477 per person per month.
Healthcare costs are very hard to generalize. Be aware that your healthcare cost may vary dramatically from the average listed above. A very healthy young person with little to no healthcare needs will pay less than average. In a family where someone needs expensive prescription drugs, for example, your cost will be higher than average.
Generally speaking, healthcare costs in Maryland are pretty affordable at about half the national figure.
Housing: $1,227.17 to $1,615.17 per month
For most Americans, housing costs are the biggest household expenditure. This is true in Maryland as well. As of summer 2022, the average home value in Maryland was about $416,000. In comparison, the home value of the average American home is just $337,560.
Of course, the cost of housing differs depending on whether you’re a homeowner or a renter:
- Median monthly mortgage payment: $2,015
- Average studio rent: $503
- Average one-bedroom rent: $606
- Average two-bedroom rent: $757
- Average three-bedroom rent: $987
- Average four-bedroom rent: $1,261
These housing costs represent the statewide average. You can expect higher housing costs if you live in a densely populated city and lower housing costs if you live in a more rural area.
For example, in Maryland City, the average monthly rent for a one-bedroom apartment is about $1,580. Housing costs in nearby Washington D.C. for a 1-bedroom, however, are closer to $2,447 per month. The national average rent is about $1,904 per month.
Housing prices in Maryland are generally higher than the national average.
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Transportation: $459.08 to $1,1251 per month
Transportation is a non-negotiable expense. Whether you drive or take transit, you do have to pay to get around in Maryland—but your cost will depend on where you live and your mode of transport.
If you live in
Takoma Park
, your costs might be limited to a monthly Metro pass and bike maintenance. Someone who lives in Keysers Ridge, on the other hand, definitely needs a car to get around (even if they telecommute to work).Maryland residents can expect to pay, on average, between $459.08 and $1,251 per month for transportation. To put this in comparison, the national average transportation cost for a two-person household is $818 per month.
Let’s break down transportation costs in Maryland a bit further:
- Monthly Unlimited Transit pass in Washington DC: $64-192
- Average cost of a gallon of gas, August 2022: $3.83
MORE:Top moving companies in Baltimore
How much you need to live comfortably in Maryland: $41,058.20 to $54,912 per year
A one-person household needs about $41,058.20 in annual income to live comfortably in Maryland. This works out to about $19.74 per hour. If you’re a family of four, you need to earn at least $54,912 per year or $26.40/hour, to meet your family’s basic needs in Maryland.
The minimum wage in Maryland is $12.50 per hour, so it might be a challenge to earn enough to pay for essential costs in this state—unless you have a high-paying job.
Cost of living calculations does not include things like saving for the future or entertainment. If you really want to live well, it’s important to give yourself some extra room in the budget.
Here are the figures for some typical non-essentials in Maryland. Check out how Maryland’s prices compare with the national average.
- Average cost of a date: $209.11 (US average: $116)
- Average cost of a night at the movies: $12 (US average: $10.61)
- Average cost of a Big Mac: $3.99 (US average: $3.99)
- Jolly Roger at 30th St. Amusement Park: $67.99 for a one-day pass (US average theme park ticket price: $91)
- Average sales tax: 6%(US average: 5.09%)
We’re not here to tell you how to spend your money. You might be perfectly content to live on less than $41,058.20 per year! But in general, most people should expect to spend at least this amount every year on the cost of living in Maryland.
The Maryland cities with the lowest cost of living
While Maryland is a fairly expensive state, it’s not expensive everywhere! Some Maryland cities have a lower cost of living than the state average (113).
Here are five Maryland cities at or below the state average for cost of living:
- Arbutus(COLI: 99.1): Just 20 minutes from Baltimore, Arbutus balances urban amenities with outdoor recreation opportunities—and the cost of living is slightly less than the national average here.
- Bel Air(COLI: 113): North of Baltimore and toward the north end of Chesapeake Bay is Bel Air, with historic architecture and cultural programming to rival any on the east coast.
- Brunswick(COLI: 101.2): This small city on the Virginia border is located right on the Potomac River. It’s a popular commuter town for people who work in DC, as it’s just 1.5 hours via train—and the cost of living is cheaper in Brunswick than in DC.
- Easton(COLI: 106.1): Located on the scenic Delmarva Peninsula, Easton offers seaside Victorian charm and a more affordable cost of living than the Maryland state average.
- Hagerstown(COLI: 86.2): Not far from the Pennsylvania border is Hagerstown, a city with historic significance and lots of outdoor attractions.
MORE:How bad is Baltimore traffic?
How to easily find home and car insurance in Maryland
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FAQs
How much does it cost to live in Maryland per month?
A single person in Maryland can expect to spend about $3,421.52 per month on essential goods and services like food, housing, transportation, and healthcare.
Save an average of 18% by bundling your home and auto insurance
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