Here is something most buyers have no idea exists: a percentage of the new homes built in Howard County are required to be sold at affordable prices set by the county's Department of Housing and Community Development. That is the Moderate Income Housing Unit (MIHU) program, and for the right buyer it is one of the most powerful paths to owning in one of Maryland's most desirable (and expensive) counties. As a Howard County native who grew up in Columbia, I take a special sense of pride in helping families with this program! Here is how it works.
MIHU is Howard County's inclusionary zoning program: developers building new housing in certain zoning districts are required to sell a portion of their units, generally 10 to 15 percent, at affordable prices set by the Department of Housing and Community Development rather than by the market. The county resets its MIHU pricing twice a year, on January 1 and July 1.
MIHUs are priced significantly less than comparable market-rate homes. Prices vary depending on the unit size, the number of bedrooms and bathrooms, and the amenities, and previously owned MIHU condominiums and townhouses are usually priced slightly lower than the new ones. And here is the part I love: MIHUs are interspersed throughout each community, and MIHU homeowners enjoy the exact same community amenities as the market-rate buyers next door. Same neighborhood, same schools, same pool. Different price.
The inventory includes brand new construction as it gets built, plus resales of homes that were previously purchased through the program. Supply is limited so if you're interested please read the next section carefully!
MIHU is not a program you use after you find a house. It is a program you apply into, and the county only opens the door four times a year: January, April, July, and October. You submit an application with the required documents during one of those open enrollment windows, and once you are approved into the database, your application stays valid for three years.
As MIHU homes become available, eligible applicants are notified and invited to a lottery drawing that selects the purchaser for each home. The selected buyer then goes under contract with the seller, follows the traditional mortgage process (this is why getting pre-approved is important), and is responsible for paying down payment and closing costs, which is exactly where smart program stacking comes in (more on that below).
Now for the honest part: supply is very limited. Available homes are limited to new MIHUs as they are built and resales of existing MIHU homes, so it can take a long time to be selected. You may also qualify for purchasing preferences that help your position, such as being a first-time homebuyer, living or working in Howard County, or being employed by the county government, the school system, or a nonprofit. But there is no guarantee of selection, and that reality should shape your whole strategy.
Notice that last one. The county does not just check that you earn under the limit; your income also has to be strong enough to actually carry the mortgage on the home. That is a lender question, not a county question, and it is exactly why the smartest first step is a conversation with me before you ever submit an application. We confirm your household income against the limits, get you pre-approved, and make sure your enrollment window is not wasted on an application that bounces.
Incomplete applications get returned, and with only four enrollment windows a year, a bounced application can cost you months. The county's official document list spells out exactly what to gather. Expect to provide items like:
Pull the official list, check off every item, and have the stack ready before your enrollment month opens. It is one less moving part when the window is live, and if we have already done your pre-approval, most of these documents are sitting in your file anyway!
A question I get all the time: "If the county controls the price, do I actually build wealth?" The answer is yes, and it is right in the county's own program rules. You can sell your MIHU home at any time through the county's resale process as long as your liens are satisfied, and when you do, you receive 100% of the proceeds of the sale. You pay down your mortgage, the home's county-set value grows over time, and every dollar of that equity is yours.
The home itself stays in the MIHU program permanently, meaning it gets resold at a county-set affordable price to the next eligible buyer. I think that is genuinely one of the best parts of the design: you build your wealth, and the home keeps creating the same opportunity for the next family. Growing up in Columbia, I watched Howard County get more and more expensive. Programs like this keep the door open, and it is why I am extra passionate about helping buyers in my own community use them.
Remember, the MIHU lottery winner still has to bring the down payment and settlement costs. This is where the stack turns a good deal into a great one. Qualified MIHU buyers can pair the below-market purchase price with Howard County's Settlement Downpayment Loan Program (SDLP), which provides up to $40,000 toward down payment and closing costs. I have helped several families do exactly this: an MIHU home at a county-set price, with SDLP covering the cash to close. It is one of the most affordable paths to ownership anywhere in Maryland.
Depending on your situation, the Maryland Mortgage Program (MMP) can also be part of the plan, and qualified buyers may be able to layer in First Home Mortgage's exclusive First Home One Grant ($5,500 fully forgivable) or First Home Dream Grant ($3,000 fully forgivable) on top. Every client's financial situation is different, which is why I like to personally analyze your goals, dreams, and financials to ensure that we choose the smartest pathway forward before you apply, not after you win a lottery drawing.
In one free, no-pressure conversation I will confirm your household income against the MIHU limits, get your pre-approval moving, and map exactly which programs stack for you. No cost, no obligation, and no wasted enrollment windows.
The county hosts free MIHU homeownership workshops that walk through eligibility and the application process, and I genuinely recommend them. Registration is required, and you can find the next available session through the county's MIHU open enrollment page. My suggestion: sign up for the next one available, but consider talking to me first. Fifteen minutes on the phone confirming your income and credit picture means you walk into that workshop already knowing whether this program fits you, and what questions actually matter for your situation.
MIHU supply is limited and selection is by lottery, there is no guarantee you will be chosen, and no way to predict when. If your timeline is flexible, that is fine. But if you need to move sooner or your housing situation is more urgent, it is smart to also understand your buying power for regular listings in the area. Plenty of my buyers run both tracks at once: application in the MIHU database, pre-approval in hand, and a clear picture of what they could buy on the open market with programs like SDLP and MMP if the right home shows up first. I recommend exploring this option for most people as there is no guarantee that you get selected for an MIHU home even if you qualify and you submit your application.
Howard County native, raised in Columbia, and a licensed loan officer for nearly a decade with hundreds of families served. Michael is one of the highest-rated loan officers on Google, is with First Home Mortgage, and has helped several families purchase MIHU homes stacked with the SDLP. Affordability in his home county is personal.
Michael Basch · NMLS #1721748 · First Home Mortgage · NMLS #71603
Tell me a little about your situation and I will follow up, usually within one business day, with which programs you may qualify for and what they are worth to you.
