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Annapolis vs Baltimore:
Housing Costs in Maryland

Side-by-side comparison of home prices, mortgage payments, and housing costs between Annapolis and Baltimore, Maryland. Using Maryland's 1.09% property tax rate and $1,700/year insurance. Updated for 2026.

MetricAnnapolisBaltimore
Median Home Price$485K$225K
Population40,812585,708
Average Rent$1,850/mo$1,350/mo
Est. Monthly Mortgage (P&I)$2,759/mo$1,280/mo
Est. Monthly Property Tax$441/mo$204/mo
Est. Monthly Insurance$142/mo$142/mo
Est. Total PITI$3,523/mo$1,710/mo
Price-to-Rent Ratio21.813.9
Verdict

Baltimore is significantly more affordable than Annapolis, with homes priced 54% lower on average. That translates to $1,813/month in savings on your total housing payment. For budget-conscious buyers in Maryland, Baltimore offers a much more accessible path to homeownership.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI. Uses Maryland's 1.09% property tax rate.

Annapolis
Home Price$485,000
Down Payment (10%)$48,500
Loan Amount$436,500
Monthly P&I$2,759
Monthly Property Tax$441
Monthly Insurance$142
Monthly PMI$182
Total PITI$3,523/mo
Annual property tax: $5,287
Baltimore
Home Price$225,000
Down Payment (10%)$22,500
Loan Amount$202,500
Monthly P&I$1,280
Monthly Property Tax$204
Monthly Insurance$142
Monthly PMI$84
Total PITI$1,710/mo
Annual property tax: $2,453

Buying in Baltimore saves you approximately $1,813/month ($21,756/year) compared to Annapolis, based on median home prices with identical loan terms.

Which City Is Better For...

First-Time Buyers

Baltimore is the better choice for first-time buyers, with a median price of $225K versus $485K in Annapolis. That's $260K less to save for a down payment. You'd need roughly $8K for an FHA 3.5% down payment in Baltimore, compared to $17K in Annapolis. Maryland offers the MD Mortgage Program program (Up to $25,000 DPA) which applies in both cities.

Real Estate Investment

Baltimore has the better price-to-rent ratio at 13.9x versus 21.8x in Annapolis. A lower ratio generally signals better rental income relative to purchase price. Average rent in Baltimore is $1,350/month on a $225K median home, making it a stronger candidate for buy-and-rent investors.

Families

Baltimore (pop. 585,708) offers more amenities, schools, and services typical of a larger city, while Annapolis (pop. 40,812) may offer a quieter, more community-oriented lifestyle. Baltimore offers both more options and lower housing costs, making it attractive for families who want urban amenities without a premium price.

Income Needed to Afford the Median Home

Annapolis
$151K
annual household income
Based on $3,523/mo PITI at 28% DTI
Baltimore
$73K
annual household income
Based on $1,710/mo PITI at 28% DTI

Other Cities in Maryland

Frederick$415K
Pop. 78,171 · Rent $1,650/mo
Rockville$575K
Pop. 68,401 · Rent $2,150/mo
College Park$385K
Pop. 32,303 · Rent $1,550/mo
Hagerstown$265K
Pop. 44,371 · Rent $1,220/mo
Bowie$445K
Pop. 58,025 · Rent $1,750/mo
Salisbury$255K
Pop. 33,618 · Rent $1,180/mo
Laurel$395K
Pop. 29,567 · Rent $1,580/mo
Cumberland$145K
Pop. 20,306 · Rent $820/mo

Explore Maryland

Maryland Mortgage Guide$420K median →
1.09% tax · $11K closing · $1,700/yr insurance
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