Potomac, MD—20854
Real Estate Data & Market Trends
Key Metrics at a Glance
Home Price Trends — Potomac, MD
As of Oct '25, the median home price in Potomac, MD is $1,256,000, with a year-over-year change of 1.6%. This indicates that home prices in Potomac, MD are increasing. According to Zillow, the 1-year price projection is -0.3%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $1,256,000 | 1.6% |
| Single Family | $1,259,000 | 1.1% |
| Condos | $1,079,000 | 1.3% |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $904,000 | -0.8% |
3 Bed | $857,000 | 0.2% |
4 Bed | $1,161,000 | 0.7% |
| 5 Bed | $1,615,000 | 0.7% |
% of Housing Stock
Rental Trends — Potomac, MD
As of July '25, Rentcast reports the average rent in Potomac, MD is $4,890, with a year-over-year rent change of -0.8%. Per bedroom, the median rent as of July '25 in Potomac, MD is 1-bedrooms: $2,050, 2-bedrooms: $2,830, 3-bedrooms: $4,120, 4-bedrooms: $5,010. The most common rental property sizes in Potomac, MD are 3-bedroom and 2-bedroom, accounting for 27.1% and 22.7% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $4,600 | $4,890 |
| Studio Rent | N/A | N/A |
| 1 Bed Rent | $1,850 | $2,050 |
| 2 Bed Rent | $2,800 | $2,830 |
| 3 Bed Rent | $3,850 | $4,120 |
| 4 Bed Rent | $4,950 | $5,010 |
% of Rental Stock
Property Listings — Potomac, MD
As of Oct '25, Realtor.com reports that the median days on market for a home in Potomac, MD is 37. This is a decrease of -20.0% from last year, suggesting that homes are sitting on the market shorter than last year. The percentage of listed homes with a reduced price is 16.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $1,470,000 | -21.0% |
Listing Count | 199 | 84.0% |
| Listings as % of Homes | 0.3% | 84.0% |
Days on Market | 37 | -20.0% |
Demographics — Potomac, MD
As of the latest ACS Survey released in 2023, Potomac, MD has a population of 49,700, which has remained stable by 1.0% over the past 5 years. Potomac, MD is a moderately popular place for families, as children make up 24.6% of the population. The area has a highly educated workforce, with 85.7% of adult residents holding a bachelor’s degree or higher. There are many residents working remotely, with 32.5% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 49,700 | 1.0% |
% Under 18 | 24.6% | 0.0% |
% Seniors | 22.5% | 4.2% |
% WFH | 32.5% | 185.1% |
% w/ College Degree | 85.7% | 4.9% |
As of the latest ACS Survey released in 2023, Potomac, MD is a predominantly white area, with 59.2% of the population identifying as white. The white population has shrunk by 4.5% in the last 5 years. The second most common race or ethnicity in Potomac, MD is asian, making up 22.1% of the population. Foreign-born residents account for 29.4% of the population in Potomac, MD, and this percentage has increased by 6.5% as of the ACS Survey 5 years prior, suggesting more immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 59.2% | -4.5% |
% Black | 4.8% | -11.1% |
% Hispanic | 8.7% | 20.8% |
% Asian | 22.1% | -5.2% |
% Foreign Born | 29.4% | 6.5% |
Mortgage and Risk — Potomac, MD
According to HUD data as of 2023, there were 763 mortgage originations in Potomac, MD, of which 96.0% of loans were conventional mortgages. The average loan-to-value was 51.0%, with 7.0% above 90% LTV (normal). This implies small mortgage risk in Potomac, MD. Investor activity is low, as 1.0% of loans were by investors. 7.0% of loans were cash-out refinances, suggesting few homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 763 |
% Conventional Loans | 96.0% |
% Government Loans | 4.0% |
% Investor Loans | 1.0% |
% Second Loans | 0.0% |
% Cash Out Refinance | 7.0% |
Loan Activity
Rentals and Section 8 — Potomac, MD
As of 2024, the percent of homes in Potomac, MD under the Section 8 program is 4.9%. This is considered low, suggesting that the neighborhood is sparsely composed of Section 8 homes. Section 8 opportunity is good when HUD pays more than market rent. In Potomac, MD, all tracked home sizes have HUD payment amounts above market rent, suggesting strong Section 8 opportunity across the board.
Section 8 Market Size
Total Units under HUD | 86 |
Total Units Section 8 | 86 |
% Rentals under Section 8 | 4.9% |
% Occupied Section 8 | 96.0% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $1,230 | $1,850 | $3,080 |
| 2 Bedroom | $670 | $2,800 | $3,470 |
| 3 Bedroom | $490 | $3,850 | $4,340 |
| 4 Bedroom | $170 | $4,950 | $5,120 |
Affordability — Potomac, MD
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 4.5 |
| Median Home Price | $1,256,000 |
| Median Household Income | $250,000 |