I did IM Maryland and there are very few hotels nearby. Cambridge is a very small town, there are some b&b's and the Hyatt and not a lot more. Most people stay in Easton or Salisbury where there are much more options. Especially Salisbury is quite a drive, but it's easy. There is quite a bit of street parking by the race start, finding a spot is easy if you arrive early enough. You will need to park there regardless of where you stay, as nothing is within walking distance to the transition area.

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Don't forget to attack!

I stayed in Easton. The race day drive wasn't bad at all, plenty of other athletes sharing the hotel there as well.

Or you could go upscale and stay in st michaels at the inn at perry cabin, a hotel featured in the wedding crashers movie.

There is camping, email/info on the site I believe.

Family is staying in Salisbury, first half the GF is doing and she is not a morning person at all so she wanted to camp so she could wake up as late as possible (and has never slept in a tent).

You will still need to drive even if camping but it is one of the closest if not the closest options.