doxoINSIGHTS » Cost of Living in Maryland: Cities Where Household Expenses are Highest and Lowest in 2024

Cost of Living in Maryland: Cities Where Household Expenses are Highest and Lowest in 2024

What is the cost of living in Maryland? doxo breaks down key insights about Maryland’s household expenses, with a close look into how bills differ between towns and cities across the state. 

According to doxo’s The Cost of Bills Index™ (COBI), the average household in Maryland pays $2,290 in monthly expenses. doxoINSIGHTS compares the cost of the ten most common household bills across different regions. This includes Utilities, Cable & Phone, Mobile Phone, Auto Loans, Auto Insurance, Life Insurance, Health Insurance, Alarm & Security, Rent, and Mortgage.

The data sheds light on Maryland’s cost of living through other metrics as well. For example, the “percent of household income” data point shows what percentage of their household income residents spend on bills each month. 

By leveraging these tools, residents can gain a clearer understanding of their household expenses and optimize their financial planning.

Maryland ranks as the 5th most expensive state in the US for household bills

According to doxo’s COBI report, Maryland is ranked as the 5th most expensive state in the U.S. for household bills, making it the least expensive state for these expenses. 

At $32,106per year, Maryland’s household expenses, on average, are 26% higher than the US average of $25,513. 

Absolute dollar amounts don’t tell the full story, however. doxo’s “Percentage of Household Income” data provides a more proportional look at bill spending in a particular location. Maryland households spend 32% of their income on bills. 

COBI helps consumers understand how much it costs to live in one area as compared to another as it relates to the most common household bills. For COBI, the number 100 represents the national average and then, states, counties and cities are assigned a number, either above or below 100, based on how they compare to the national average. The COBI for Maryland is 126.

• Average Bill Cost per Household: $2,676 per month
• Cost of Bills Index(COBI): 126
• doxoINSIGHTS State Rank: #5
• Percent of Household Income Used for Bills: 32%
• Compared to the National Average: 26% higher

Maryland Household Expenses are 26% Higher Than the National Average

The average Maryland household pays $2,676 per month in the 10 most common household bills. The least expensive of these are alarm and security bills. 

On the lowest end of the spectrum, the average monthly payment for alarm and security bills in Maryland is $97, compared to the national average of $85, making it 14% higher than average.

Monthly mortgage bills are the most significant of the 10 most common bills for Maryland residents. The average monthly mortgage payment is $2,032, compared to the national average of $1,402, making it 45% more expensive. 

Average Maryland Household Bill Spending

Potomac has the highest cost of living in Maryland for household bills

Residents of Potomac pay the highest household bills in the state of Maryland, at an average of $3,932 per month. The Cost of Bills Index (COBI) for Potomac is 185, meaning the average cost of bills in this city is 85% higher than the national average.

In proportion to household income, monthly bills in Potomac makeup 20% of the average annual household income of $241,697. 

Access detailed infographics about each city or town by clicking on the hyperlinks in the “City” column in the tables below. You can also browse doxoINSIGHTS’ regional bill comparison database to see infographics about more than 4,200 cities and towns across all 50 states in the US.

10 Most Expensive Maryland Cities for Household Bills

Frostburg has the lowest cost of living in Maryland for household bills

Out of 101 cities, Frostburg is the most affordable place in Maryland, with residents paying $1,523 on average for household bills, accounting for 33% of annual income of $55,761. The Cost of Bills Index (COBI) for Frostburg is 72, meaning the average cost of bills in this city is 28% below the national average. 

Cumberland is the second most affordable city in Maryland, with residents paying $1,574 per month on average.

Also on the list of the 10 least expensive cities in Maryland are Brooklyn ($1,858), Oakland ($1,859) and Hagerstown ($1,986).

10 Most Affordable Maryland Cities for Household Bills

Some individuals might be considering moving from a more expensive city to a less expensive one. For those making such decisions, doxoINSIGHTS can be a valuable resource. It allows consumers to compare household expenses in Maryland with average bills in various cities and states nationwide.