Maryland · Washington-Arlington-Alexandria, DC-VA-MD-WV metro area

Buying a home in Frederick, Maryland

In Frederick, the median value of owner-occupied homes is $401,500, Frederick County's effective property tax rate is 0.99%, a purchase mortgage carried a median $7,196 in total loan costs in 2025, and median gross rent is $1,764 a month.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

Frederick home costs, fact by fact

About Frederick

Median gross rent is $1,764 a month, and 58.8% of homes are owner-occupied. Frederick County's effective property tax rate (median tax as a share of home value) is 0.99%, while HUD's Fair Market Rent for a two-bedroom is $2,438.

Reading the Frederick figures

Frederick's owner-estimated median of $401,500 falls below the Maryland median of $445,800. Germantown reports $422,400, Columbia $497,400, and Baltimore just $229,600. Frederick County's own median value is $464,600, and its 0.99% rate puts annual property tax for that home at $4,584. Median gross rent of $1,764 runs under HUD's Fair Market Rent benchmark of $2,438, a federal reference figure rather than a market median. The county's 2025 HMDA filings hold 3,168 loans, with a midpoint outlay of $7,196 and an interquartile range from $5,007 to $12,219. Owners occupy 58.8% of homes, which is below Columbia's 64.8% and Germantown's 67.2%.

Calculate for Maryland

If you buy

Maryland state transfer tax

State transfer tax (Tax-Property Article 13-203): 0.5% of consideration; 0.25% for a first-time Maryland buyer who will occupy the home. Change the price: the amount is recalculated instantly.

Price$445,800
State transfer tax$2,229
Share of the price0.5% of the price
Who paysShared by buyer and seller

Default price: the Maryland median value of owner-occupied homes, $445,800 (Census ACS 2025). Rule: 0.5% of the consideration, including any mortgage the buyer assumes. For a first-time Maryland buyer who will occupy the home the rate is 0.25%. Plus, in Baltimore City, a local transfer tax of 1.5% and a local recordation tax of $5.00 per $500 (fiscal year 2027, Maryland Department of Legislative Services); Baltimore City adds a yield tax above $1 million. Who pays: Anyone may pay by agreement. If the contract is silent, the law presumes seller and buyer share recordation and transfer taxes equally. When a first-time Maryland buyer will live in the home, the seller pays the entire state transfer tax and, unless the contract says otherwise, all recordation and local transfer tax. Not included: other county and city transfer taxes, the tax on the mortgage, recording fees, title insurance and lender charges. Maryland transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Maryland state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in Frederick

How much is property tax in Frederick?

Homeowners in Frederick County pay a median $4,584 a year in property tax, 0.99% of the county median home value of $464,600 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Frederick?

Home-purchase mortgages in Frederick County carried median total loan costs of $7,196 in 2025; half of the 3,168 loans fell between $5,007 and $12,219 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Frederick?

Maryland imposes a 0.5% state transfer tax on the consideration for a deed, dropping to 0.25% for a first-time Maryland buyer who will live in the home. Counties and Baltimore City add local transfer taxes (Baltimore City 1.5%) and a separate recordation tax.

Is it cheaper to rent or buy in Frederick?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Frederick ($401,500) equals 19 years of the median gross rent ($1,764 a month), both from Census ACS 2020-2024.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Maryland rules that apply in Frederick

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Sources

Maryland · All states · Federal guides