Investment metrics, interactive calculators, and data-driven analysis for Frederick rental properties.
Pre-filled with Frederick medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Frederick.
Frederick, MD has a population of 82,000 and has been growing at 1.2% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $380,000 paired with median rents of $1,680/mo produces an estimated cap rate of 3.25%.
Property taxes at 1.02% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 4.5% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.
At a price-to-income ratio of 4.6x, homes cost about 4.6 times the local median income of $82,400. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: At current median prices, Frederick is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.