BALTIMORE, MD—Aspiring and current independent workers in Maryland face one of the most challenging environments in the country, according to a new study that ranks the state among the bottom 20 locations for freelancers.
Business law firm Romano Law PLLC released a study this week that scored states based on factors like cost-of-living, startup success, and workforce demographics. Maryland received a score of 44.58 out of 100, landing it at the 18th most challenging state for self-employed individuals in 2025.
The primary factor dragging down the state’s ranking is the high cost of living, particularly housing.
“The data shows that states with the right mix of affordable living costs and strong infrastructure for remote work create the most suitable environments for freelancers,” commented Domenic Romano, Managing Partner of Romano Law PLLC.
High Rent and Underemployment Hurt Independent Workers
According to the study’s findings, high expenses pose a significant obstacle to Marylanders who lack a fixed monthly income:
- High Rent Costs: The average monthly rent in Maryland is cited as $1,909, nearly 33% higher than the national average of $1,440. With 32.5% of households in the state renting, this high cost is a major financial vulnerability for freelancers.
- High Underemployment Rate: Maryland was flagged for having a 7% underemployment rate. This means a substantial portion of the workforce is involuntarily stuck in low-skill or low-paying jobs, suggesting fewer lucrative work opportunities may be available for skilled freelancers in the local market.
The study analyzed factors including the percentage of self-employed workers, the one-year survival rate of startups, and average monthly essential expenses to determine the rankings.
National Landscape: Best and Worst States
While Maryland struggles, the study highlighted significant differences across the nation.
Vermont was crowned the best state for freelancers with a score of 67.70 out of 100, driven by a low underemployment rate of 4.7%, relatively low average rent of $1,530, and high remote work adoption. Florida and Wyoming followed as the second and third-best locations, respectively.
At the opposite end of the spectrum, West Virginia was identified as the worst state for freelancers, receiving a score of just 25.91. It suffers from the lowest percentage of self-employed workers in the study (6.7%) and a low rate of new business creation.
Steven Shanker, Partner and Chair of Business Law at Romano Law PLLC, emphasized the need for better legal frameworks in the growing gig economy.
“The explosive growth of the gig economy has proven that freelancers need legal protection as well. New York offers legal protections to freelancers through its Freelance Isn’t Free Act,” Shanker noted. This legislation provides mandatory written contracts, timely payment, and protection against retaliation for independent contractors—protections currently absent in Maryland.
For Maryland residents considering a career pivot to self-employment, the study underscores that location remains a critical factor that can determine long-term financial success.
Photo via Pixabay
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