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Baltimore city, MD

Rent vs Own in Baltimore city, Maryland

Owning the median home in Baltimore city clears the monthly bar: about $1,507/mo versus HUD's $1,857/mo 2-bedroom rent. The stack below shows which line items create that edge. Owner-occupied homes: 121,471.

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Buying is cheaper in Baltimore city

Owning runs about $1,507/mo here, under $1,857/mo to rent a comparable 2-bedroom. That is a $350/mo difference.

Based on 20% down, 6.5% rate, 30-year mortgage. Adjust below.

What This Data Tells Us About Renting vs Owning in Baltimore city

Primary driver

Buying compares well inside the state

Using the assumptions above, Baltimore city ranks 1 of 24 Maryland counties for buy-vs-rent value (rank 1 = the best relative deal for buying). It is the state's most buy-favorable county by this measure.

Decision signal 2

Price and income sit in the middle band

Median household income is $62,177, for a 3.7x home-price-to-income ratio in the middle of the national distribution; property tax takes 5.4% of that income. Small changes in down payment or rate move this county across the rent-vs-own line more than they would in a high-ratio market.

Decision signal 3

Owning clears the monthly bar here

Baltimore city's median home ($229,600) carries $3,354/yr in property tax at 1.46%. Under a 20% down, 6.5%, 30-year stack the all-in ownership bill is about $1,507/mo, which undercuts HUD's $1,857/mo 2-bedroom Fair Market Rent by roughly $350/mo before maintenance, HOA, or closing costs.

Decision signal 4

HUD moved the rent benchmark down

HUD cut its 2-bedroom Fair Market Rent for Baltimore city from $1,965/mo in FY2025 to $1,857/mo in FY2026: it decreased by $108/mo (-5.5%). A falling benchmark narrows the case for buying here, and it usually reflects HUD re-estimating the local market rather than existing rents being cut.

Methodology & disclaimer

This calculator is for informational purposes only and is not tax, legal, or financial advice. Property tax figures come from the U.S. Census Bureau ACS 5-Year Estimates and rent figures come from HUD Fair Market Rents; both describe area medians, not individual transactions. Insurance is estimated at 0.35% of home value annually and closing costs, maintenance, HOA, and PMI are not included. Consult a licensed mortgage, tax, or real-estate professional before making a buy-or-rent decision based on these numbers.

Monthly Cost Breakdown

Estimated Monthly Ownership
$1,507
Mortgage (P&I) $1,161
Property Tax $280
Insurance (est.) $67
Monthly Rent (2-BR FMR)
$1,857
Studio$1,362
1-Bedroom$1,511
2-Bedroom$1,857
3-Bedroom$2,358
4-Bedroom$2,611

Adjust Your Scenario

Affordability Context

Median Household Income
$62,177
$5,181/mo
Home Price / Income
3.7x
Moderate (3-5x)
Tax-to-Income Ratio
5.4%
National benchmark: 2-4%

Who actually pays it here

Even with the loan gone, the largest group of Baltimore city owners still owes $3,000 or more every year - a recurring holding cost of a few hundred dollars a month, which is why "paid off" understates the real cost of keeping property here.

Baltimore city matches the national pattern: six-figure earners between $100,000 and $200,000 account for more of these write-offs than any other local group.

Against that holding-cost profile, the monthly ownership stack already undercuts HUD rent here, so the long-run tax bill is an ownership feature more than a reason to keep renting.

Bill bands are Census ACS counts of owner-occupied homes without a mortgage. Income brackets are IRS Statistics of Income county data for tax year 2022, counted over FILERS reporting real-estate taxes on Schedule A, which is a smaller group than homeowners: most filers take the standard deduction.

Nearby Counties

Montgomery County
Home: $640,300 Tax: $5,539/yr
Baltimore County
Home: $349,300 Tax: $3,736/yr
Prince George's County
Home: $426,000 Tax: $4,771/yr
Anne Arundel County
Home: $467,900 Tax: $3,957/yr
Howard County
Home: $597,900 Tax: $6,987/yr
Harford County
Home: $386,400 Tax: $3,448/yr

Frequently Asked Questions

Is it cheaper to rent or buy in Baltimore city, Maryland? ▼
On the standard 20%-down / 6.5% stack, owning the median Baltimore city home undercuts HUD's 2-bedroom rent by about $350/mo. Change the down payment, rate, or time horizon in the calculator and that gap can flip - owning also builds equity that rent never does.
What is the average rent in Baltimore city? ▼
HUD prices a 2-bedroom unit at $1,857/mo here. Sizing up matters: going from a studio to a 4-bedroom adds about $1,249/mo, so the per-bedroom jump is worth checking against your actual space needs before assuming the 2-BR figure applies to your situation.
How does Baltimore city compare to other Maryland counties for renting vs buying? ▼
Out of 24 Maryland counties ranked here on buy-vs-rent value, Baltimore city lands at spot 1, putting it in the more buy-favorable quarter of the state. The <a href="/states/maryland">Maryland state page</a> lists every peer county's tax bill beside this one.
How much house can you afford in Baltimore city? ▼
On the common 3x-income guideline, a $62,177 household here can afford up to $186,531 -- about $43,069 short of this county's $229,600 median home. That gap is typically closed with a larger down payment, dual incomes, or a longer search outside the median price band.
What is the median home price in Baltimore city? ▼
$229,600, per the Census Bureau's ACS 5-Year Estimates. The property tax on that value works out to roughly 1.46% a year, in line with typical rates for the area.
Is rent going up or down in Baltimore city? ▼
HUD's 2-bedroom Fair Market Rent figure has fallen 5.5% between the FY2025 and FY2026 publications, the two most recent years tracked here.

Read our methodology - how this data is sourced, computed, and verified.

Data sourced from the U.S. Census Bureau (American Community Survey). See our methodology for details. Retrieved and formatted by PlainPropertyTax

Source: U.S. Census Bureau, Government Finances State and local property tax revenue by jurisdiction · 2025

Verify with HUD →