Potomac, MD 20854 - Home Prices, Rental Trends, Listings & Demographics | Prop:Metrics

Potomac, MD—20854

Real Estate Data & Market Trends

Key Metrics at a Glance

Median Home Value

$1,235,000

1.1% YoY Growth

Household Income

$250,000

21.3% YoY Growth

Days on Market

16.0% Longer YoY

Home Price Forecast

0.0%

Median Rent

$4,600

0.8% YoY Growth

1-Bed Rent

$1,850

15.3% YoY Growth

2-Bed Rent

$2,800

0.0% YoY Growth

3-Bed Rent

$3,850

8.1% YoY Growth

Home Price Trends — Potomac, MD

As of Dec '25, the median home price in Potomac, MD is $1,235,000, with a year-over-year change of 1.1%. This indicates that home prices in Potomac, MD are increasing. According to Zillow, the 1-year price projection is 0.0%, suggesting a relatively flat housing market in the next year.

Cost per Home Type

Home Type	Median Home Value	YoY % Change
All Homes	$1,235,000	1.1%
Single Family	$1,239,000	0.7%
Condos	$1,064,000	0.8%

Cost per Home Size

Home Size	Median Home Value	YoY % Change
1 Bed

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

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% of Rental Stock

Studio

4.5%

1 Bedroom

12.9%

2 Bedrooms

22.7%

3 Bedrooms

27.1%

4 Bedrooms

14.1%

5+ Bedrooms

18.8%

Property Listings — Potomac, MD

As of Dec '25, Realtor.com reports that the median days on market for a home in Potomac, MD is 43. This is a decrease of -8.0% 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 13.0%, representing a small inventory and little supply pressure on home prices.

Metric	Zip Code Average	Year over Year % Change
Median Listing Price	$1,330,000	-29.0%
Listing Count	128	64.0%
Listings as % of Homes	0.3%	64.0%
Days on Market	72	16.0%

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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%

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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%

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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%

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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

Potomac, MD—20854

Key Metrics at a Glance

Home Price Trends — Potomac, MD

Cost per Home Type

Cost per Home Size

% of Housing Stock

Rental Trends — Potomac, MD

% of Rental Stock

Property Listings — Potomac, MD

Demographics — Potomac, MD

Race and Ethnicity

Mortgage and Risk — Potomac, MD

Mortgages

Rentals and Section 8 — Potomac, MD

Section 8 Market Size

Section 8 Opportunity

Affordability — Potomac, MD

Home Price to Income Ratio

Potomac, MD — ZIP Code Boundary Map

Nearby ZIP Codes

Rockville, MD

Bethesda, MD

McLean, VA

Gaithersburg, MD

Great Falls, VA

Frequently Asked Questions

Metric	Zip Code Average
Home Price to Income Ratio	4.5
Median Home Price	$1,235,000
Median Household Income	$250,000

Potomac, MD—20854

Key Metrics at a Glance

Home Price Trends — Potomac, MD

Cost per Home Type

Cost per Home Size

% of Housing Stock

Rental Trends — Potomac, MD

% of Rental Stock

Property Listings — Potomac, MD

Demographics — Potomac, MD

Race and Ethnicity

Mortgage and Risk — Potomac, MD

Mortgages

Rentals and Section 8 — Potomac, MD

Section 8 Market Size

Section 8 Opportunity

Affordability — Potomac, MD

Home Price to Income Ratio

Potomac, MD — ZIP Code Boundary Map

Nearby ZIP Codes

Rockville, MD

Bethesda, MD

McLean, VA

Gaithersburg, MD

Great Falls, VA

Frequently Asked Questions

What is the average home price in Potomac, MD 20854?

How have home prices in Potomac, MD 20854 changed over the past year?

What is the home price projection for Potomac, MD 20854?

What are the demographics of Potomac, MD 20854?

How long does it take homes to sell in Potomac, MD 20854?

What is the average rent price in Potomac, MD 20854?