Market Snapshot
- Median listing price
- $1.45M
- Median rent
- $4,600/mo
- Days on market
- 118 days
- Gross rental yield
- 3.81%
The median listing price in Potomac, MD ZIP 20854 is $1,450,000 as of July 2026.
The median market rent in Potomac, MD ZIP 20854 is $4,600/month as of July 2026.
The median days on market in Potomac, MD ZIP 20854 is 118 days as of July 2026. The market is currently neutral.
At a median list price of $1,450,000 and a median rent of $4,600/month, the gross rental yield in Potomac, MD ZIP 20854 is 3.81% as of July 2026.
Potomac, MD 20854 Real Estate Market Report
ZIP Code: 20854
Report Date: July 2026
Scope: This ZIP code analysis focuses on single-family residential (SFR) properties. Metrics are calculated from recent sales and active listings within the past 90 days.
Market Overview
This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.
Market Metrics
The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.
Rental Market
Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.
Property Taxes
Liquidity & Velocity
Market Trends & Context
Understanding Market Temperature
A Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.
Current Mortgage Rate Context
Market-level mortgage rate comparison for this area:
Current 30-year fixed mortgage rates in the Potomac, MD market are approximately 6.49%, which is 0.4% higher than the 6.09% average observed during early 2026 loan originations.
Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.
Key Findings
- The neighborhood's primary value indicator is the median sold price of 1,336,000, which signals recent transaction-level pricing and should be prioritized over asking prices when setting offers or comps; representative recent sale informs valuation.
- The median listing price is 1,450,000, creating a noticeable spread versus the median sold price that may indicate pricing friction between seller expectations and closed transactions; neutral market temperature suggests sellers may need to adjust pricing to meet buyers.
- Market liquidity appears muted: the median days on market of 118 points to slower sales velocity and longer holding periods, which may indicate pacing risks for sellers planning quick turnarounds.
- Rental demand and rent growth are supportive for investors: the median market rent is 4,600 and rent year-over-year trend is up, while interest rate pressure is labeled moderate (30-year fixed around 6.49%), implying financing costs are an important consideration for buy-and-hold strategies.
Notable Properties
The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.
Recent Transactions
Highest sale in the past 90 days. Fully renovated with modern finishes and premium lot positioning.
Sold above market average
Sold at market average
Representative market sale establishing baseline for properties in the core neighborhood.
Representative market sale establishing baseline for properties in the core neighborhood.
Representative market sale establishing baseline for properties in the core neighborhood.
Representative market sale establishing baseline for properties in the core neighborhood.
Sold below market average
Investment Analysis
Compare rental income potential against ownership costs and benchmark against market averages.
Monthly rental income vs estimated ownership cost
20% down, 6.49% rate, 0.9% tax
Avg nightly rate and occupancy for this ZIP
Data Sources
Real estate market data & public records, and GemHaus® proprietary models.
Report generated: 7/10/2026
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