Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Kentucky and Maryland. Updated for 2026.
Kentucky wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $210K and lower overall costs, Kentucky offers meaningful savings compared to Maryland. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in Kentucky saves you approximately $1,451/month ($17,412/year) compared to Maryland, based on median home prices with identical loan terms.
Kentucky offers meaningfully lower home prices than Maryland, with median prices running 50% less ($210K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Maryland may find Kentucky far more accessible, particularly when combined with local down payment assistance programs.
Property tax rates are similar in both states (Kentucky: 0.83%, Maryland: 1.09%), so taxes shouldn't be the deciding factor in your relocation decision. Instead, focus on differences in home prices, insurance costs, and state-specific programs. Both states collect roughly comparable property tax revenue relative to home values.
Insurance costs favor Maryland at $1,700/year versus $2,400/year in Kentucky, a difference of $700 annually. While not the largest cost factor, this adds up to over $7K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.
Closing costs are a one-time but significant expense. Maryland averages $11K in closing costs (2.5% of purchase price) while Kentucky averages $3K (1.4%). Much of Maryland's higher costs come from its 1.5% transfer tax, which adds $6K to the median home purchase. Budget for these upfront costs — they affect how much cash you need on hand at closing.
Both states offer down payment assistance for first-time buyers. Kentucky's KHC Regular DAP provides Up to $6,000 repayable loan, while Maryland's MD Mortgage Program offers Up to $25,000 DPA. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: Kentucky homes cost $210K less than Maryland on average. That translates to roughly $1,451 less per month in total housing costs if you choose Kentucky. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.