Learn About Affordable Housing Programs in Maryland

Overview of Affordable Housing Programs in Maryland

Maryland offers several programs designed to help people find and maintain affordable housing. These programs exist at state and local levels, meaning different options may be available depending on where you live in the state. Understanding what these programs are and how they work is an important first step for anyone looking for housing solutions.

The state's affordable housing initiatives fall into several categories: rental assistance, down payment help for home purchases, preservation of existing affordable units, and support for people experiencing homelessness. Each program has its own structure, funding sources, and rules about who can participate. Some programs focus on families with children, while others serve seniors, people with disabilities, or individuals transitioning out of homelessness.

Maryland's housing challenges vary by region. In areas near Baltimore and Washington D.C., housing costs are significantly higher than in rural parts of the state. This means the same income might be considered affordable in one county but not in another. Programs often use something called "area median income" (AMI) to determine program participation. For example, in 2024, a family of four earning 60% of the AMI in Baltimore County might have a different income threshold than the same family in rural Somerset County.

The Department of Housing and Community Development (DHCD) serves as Maryland's main state agency overseeing these programs. Counties and cities also run their own initiatives, sometimes partnering with nonprofits to deliver services. This means resources and program availability can differ significantly based on location.

Takeaway: Start by identifying which county or city you live in, as this determines which programs may be relevant to your situation. Contact your local housing authority or community action agency to learn what specific programs operate in your area.

Rental Assistance and Emergency Housing Support

Rental assistance programs help people pay rent when they are experiencing financial hardship. Maryland has both temporary emergency programs and longer-term rental support initiatives. These programs have grown significantly in recent years, particularly after the COVID-19 pandemic created widespread housing instability.

The Emergency Rental Assistance Program (ERAP) was created to help renters who fell behind on payments due to pandemic-related job losses and income reduction. Through this program, eligible households received direct payments to landlords to cover unpaid rent and utilities. While federal funding for this specific program has ended, Maryland continues to operate state-funded rental assistance through other mechanisms.

Local housing authorities throughout Maryland administer ongoing rental assistance. For instance, Baltimore City's Department of Housing and Community Development offers rental assistance to low-income renters facing eviction or experiencing housing instability. Similarly, Prince George's County and Montgomery County each have rental assistance programs. These programs typically provide payments directly to landlords on behalf of tenants.

To understand rental assistance in your area, you would need to contact your local housing authority. Many counties have housing authorities separate from city government, so a person in Harford County would contact the Harford County Housing Authority rather than a city office. Community action agencies, which operate throughout Maryland, also provide information about local rental assistance options. These nonprofits often serve as access points for housing support.

The amount of rent assistance and how long support continues varies by program. Some programs cover three to six months of back rent, while others provide ongoing monthly support. Many programs also help with utility payments and security deposits for new housing.

Takeaway: When seeking rental assistance, contact your county housing authority first. If you cannot locate one, community action agencies and 211 Maryland (a phone and online resource) can direct you to local programs and provide information about how each program works.

Down Payment and Home Purchase Assistance Programs

For people interested in buying a home, Maryland offers several programs that provide down payment assistance, closing cost support, and favorable loan terms. These programs recognize that saving enough money for a down payment represents a major barrier to homeownership for many households.

The Maryland Home Buyers Program, administered by DHCD, offers several options for first-time home buyers. This program provides down payment and closing cost assistance using a combination of deferred loans and grants. A deferred loan means the borrower does not have to make payments immediately—the loan is forgiven after a certain period if the homeowner stays in the house and maintains it properly. This structure helps people get into homeownership sooner rather than waiting years to save.

Community development financial institutions (CDFIs) and nonprofit lenders throughout Maryland also offer down payment assistance. Organizations like Habitat for Humanity chapters in various Maryland counties build and rehabilitate homes for low-income families. These organizations typically provide not only affordable purchase prices but also down payment support and favorable financing terms. Habitat chapters operate in Baltimore City, Baltimore County, Howard County, Anne Arundel County, Prince George's County, and other areas.

Credit unions and community banks often have homebuyer programs that complement state offerings. The Maryland Credit Union League and individual credit unions provide information about down payment assistance options for their members. Some employers also partner with nonprofits to offer down payment help to employees, particularly in the healthcare, education, and government sectors.

These programs typically require participants to complete homebuyer education courses. These classes teach about mortgage options, home maintenance, budgeting, and the responsibilities of homeownership. Completion of these courses is generally required before receiving assistance. The courses are often offered free or at low cost by nonprofits and housing authorities.

Takeaway: Research both state programs through DHCD and local nonprofit organizations in your area. Complete a homebuyer education course early in the process, as this is usually a requirement and provides valuable information regardless of which program you pursue.

Preservation and Development of Affordable Rental Housing Stock

Maryland works to maintain and create affordable rental housing through several state programs that fund developers and property owners. These programs operate largely behind the scenes but directly affect the availability of affordable apartments throughout the state.

The Rental Housing Support Program uses state funding to preserve existing affordable rental properties and develop new ones. This program provides grants and loans to developers and nonprofit organizations that build or rehabilitate apartment buildings designated for low-income residents. When you see a newly renovated apartment complex advertising rent affordable to households earning below a certain income level, it may have been developed or preserved using this program.

The Community Development Block Grant (CDBG) program, funded federally but administered by Maryland, provides resources to local governments and nonprofits for housing development and rehabilitation. Each year, counties and cities receive CDBG funding that they can direct toward housing priorities. Baltimore City, for example, uses CDBG funds for vacant property rehabilitation and affordable housing development. Smaller communities use these grants to support similar projects at a local scale.

The Housing Opportunities Commission (HOC), which serves the Washington D.C. suburbs including Montgomery and Prince George's counties, owns and manages thousands of affordable rental units. While technically a separate entity rather than a state program, HOC represents a model of permanent affordable housing development. HOC properties house seniors, families, people with disabilities, and individuals earning very low incomes. These communities typically maintain long waitlists, reflecting the strong demand for affordable housing in that region.

Low-Income Housing Tax Credits (LIHTC) represent another major funding stream for affordable housing development. These federal tax credits are allocated to states, which then distribute them to projects. Maryland receives approximately $30 million in tax credits annually. Developers use these credits to make projects financially viable while keeping rents affordable. A significant portion of Maryland's newest affordable housing has been built using tax credit financing.

Takeaway: If you are searching for an affordable apartment, contact your local housing authority or community action agency to learn about properties that have been preserved or developed through these programs. Lists of affordable housing properties are often maintained by local housing authorities and community development organizations.

Support for Special Populations: Seniors, People with Disabilities, and Homeless Individuals

Maryland recognizes that certain groups face particular housing challenges and have developed targeted programs for seniors, people with disabilities, and people experiencing homelessness. These specialized programs address both housing and supportive services.

Senior housing in Maryland includes both independent living communities and supportive housing with services. The state funds supportive housing programs specifically designed for low-income seniors. These properties combine affordable rent with access to services such as meal programs, transportation, case management, and health monitoring. Organizations like Jewish Community Services and other nonprofits operate senior housing communities throughout the state using state and federal funding. Cities like Annapolis, Baltimore, and Montgomery County host multiple senior housing communities.

People with disabilities can access housing through several state programs. The Housing Choice Voucher program, administered locally by housing authorities, serves