Federalsburg: The Poorest Town in Maryland
Federalsburg, a small town located in Caroline County on Maryland’s Eastern Shore, has recently been identified as the poorest town in the state according to the latest data from the U.S. Census Bureau’s 2021 American Community Survey. Despite Maryland’s reputation as one of the wealthiest states in the nation, Federalsburg’s economic struggles highlight the stark disparities that exist within its borders.
Economic Realities
Income and Poverty Rates
- Federalsburg’s median household income is just $31,532 per year, which is 65.5% less than the statewide median.
- The poverty rate in Federalsburg is 28.4%, significantly higher than Maryland’s overall poverty rate of 9.2%.
- Other sources report similar figures, with the median household income ranging from $31,532 to $35,432 and the average annual household income at $48,135.
- The per capita income in Federalsburg is $19,145, placing it among the lowest-income communities in both Maryland and the nation.
These statistics underscore the severe economic challenges facing Federalsburg. More than a quarter of the town’s residents live below the federal poverty line, and childhood poverty is especially high, with 37.5% of children living in poverty-higher than 87.5% of neighborhoods nationwide.
Demographics and Workforce
Federalsburg is home to approximately 2,800 residents. The workforce is diverse, with a mix of white- and blue-collar jobs. Many residents work in healthcare support (16.37%), office and administrative support (11.51%), and teaching (8.28%). Despite the small size of the town, there is a notable reliance on public transportation, particularly buses, reflecting the need for affordable commuting options.
Educational attainment in Federalsburg is low: only 7.29% of adults over 25 hold a bachelor’s degree or higher, compared to the national average of 21.84%. This lack of higher education is both a symptom and a cause of the town’s economic difficulties, limiting access to better-paying jobs and perpetuating cycles of poverty.
Community Challenges
Federalsburg’s economic struggles are compounded by limited local resources and opportunities. The town’s leadership has acknowledged the need for increased revenue and cost savings, with discussions about potential tax rate increases to address budget shortfalls.
Despite these challenges, Federalsburg is not without strengths. The town is described as the “economic engine of Caroline County,” with several successful companies located in its industrial parks. Efforts are underway to revitalize the community and stimulate economic growth.
Revitalization and Hope
In response to these challenges, Federalsburg has received state support to develop a Strategic Development Plan aimed at community revitalization and economic development. The plan focuses on:
- Revitalizing the downtown business district
- Supporting small business development
- Promoting tourism
- Improving housing
Local leaders and state officials are optimistic that these initiatives will help Federalsburg become a more vibrant and desirable place to live and do business.
“This Strategic Development Plan grant is a tremendous opportunity for Federalsburg to take control of its future possibilities and to drive the town forward in the 21st century,” said George Mayer, Grants Administrator for the Town of Federalsburg.
Broader Context
While Federalsburg’s struggles are acute, it is not alone. Other towns in Maryland, such as Frostburg, Cambridge, and Cumberland, also face high poverty rates and low incomes. However, Federalsburg stands out due to its particularly low median income and high poverty rate, making it a stark example of the economic disparities that persist even in affluent states.
Federalsburg’s designation as the poorest town in Maryland is a sobering reminder that statewide prosperity does not reach all communities equally. With a median income far below the state average and a poverty rate nearly three times higher, Federalsburg faces significant challenges. However, ongoing efforts to revitalize the town and stimulate economic growth offer hope that Federalsburg can chart a new path toward a brighter future
Sources:
- https://mylolowcountry.com/usa-laws/this-town-has-been-named-the-poorest-in-maryland/
- https://www.townoffederalsburg.org/Town%20of%20Federalsburg%20MD%20-%20Comprehensive%20Financial%20Review%20-%20Executive%20Summary.pdf
- https://www.neighborhoodscout.com/md/federalsburg
- https://www.point2homes.com/US/Neighborhood/MD/Federalsburg-Demographics.html
- https://www.roadsnacks.net/poorest-places-in-maryland/
