Montgomery County housing market
Montgomery County is Maryland’s most populous county, with about 1,082,000 residents and roughly 409,000 housing units. It runs from the District of Columbia line north and west to the Patuxent and Potomac rivers, taking in dense transit corridors in the south, post-war and late-century suburbs through the middle, and a 93,000-acre Agricultural Reserve across the northwest third of the county.
- $590,000Median list price↓ 8.5% year over year
- 43Median days on market↑ 13.2% year over year
- 2,073Homes actively listed↑ 21.7% year over year
- $140,837Median household income
Market data period: August 2026. Median list price, median days on market and active listing count: Realtor.com residential listings data for Montgomery County, Maryland, retrieved from FRED, Federal Reserve Bank of St. Louis. Year-over-year comparisons use August 2025. Median list price reflects asking prices on active listings, not sale prices.
- $660,800Median value, owner-occupied
- 65.1%Homeownership rate
- $2,097Median gross rent
- 1,082,273County population
Population, median household income, median owner-occupied home value, homeownership rate and median gross rent: U.S. Census Bureau, American Community Survey 2024 1-year estimates for Montgomery County, Maryland. These are survey estimates and carry margins of error.
Long-run price trend
Measured by the Federal Housing Finance Agency All-Transactions House Price Index for Montgomery County, home prices rose an average of about 4.2% a year over the ten years to 2025, and about 6.2% a year over the five years to 2025. Most of that five-year figure was earned between 2020 and 2023; the index rose less than 2% between 2024 and 2025. Long-run averages describe past periods. They are not a forecast.
The Montgomery County listing market has loosened over the past year. The median asking price in August 2026 was about 8.5% lower than a year earlier, the median time on the market was 43 days against 38 a year before, and the number of active listings was up about 21.7%. More homes, sitting longer, at lower asking prices is the clearest picture of a market where supply has caught up with demand at current price levels.
One figure deserves a caution. The median asking price on active listings is about $590,000, while the Census Bureau’s median value of owner-occupied homes in the county is about $660,800. Those measure different things. The first describes what is currently for sale, which in Montgomery County includes a large share of condominiums and other attached homes. The second describes the full stock of owner-occupied homes, which skews toward detached houses. The gap is a composition effect, not a sign that homes are selling far below what they are worth.
Featured Montgomery County real estate agents
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Melissa L Lambert
Long & Foster Real Estate, Inc.
Serves Montgomery County
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Buying a home in Montgomery County
Montgomery County’s housing stock is the most varied of any county covered on this site, and the mix matters for financing. About 46% of housing units are single-family detached homes and about 18% are attached — townhouses and rowhouses. The remaining 36% sits in multifamily buildings, and within that, roughly 18% of all housing units in the county are in buildings of 50 or more units. That is a far larger share of condominium and apartment-style housing than the other Maryland counties covered here, and it is concentrated along the county’s transit corridors.
In Montgomery County, property type is an important part of the homebuying decision.
Condominiums need the building to qualify, not just you
With about 18% of the county’s housing in buildings of 50 or more units, condominium purchases are common here. A condominium loan is underwritten on the project as well as the borrower: some projects are approved for FHA or VA financing and some are not, and conventional financing applies its own project review covering owner-occupancy ratios, reserves, litigation and budget. Raise the specific building with a lender before you write an offer, not after.
MPDUs carry obligations that outlast settlement
Montgomery County’s Moderately Priced Dwelling Unit program sells homes at controlled prices, and new MPDUs stay under county control for 30 years. During that period the home cannot be sold on the open market. If you are shopping in a development that includes MPDUs, know which units are restricted before you tour them.
Association dues reduce what you can borrow
Across condominiums, townhouse communities and planned developments, a large share of Montgomery County housing carries monthly dues. Those dues count toward your debt-to-income ratio, so a high fee lowers your maximum loan amount at the same income. Maryland gives buyers a disclosure and review period for HOA and condominium documents — including the resale certificate package, budget and reserve information. Use it rather than waiving it.
About half the housing predates 1980
Roughly 49% of the county’s housing was built before 1980, with the 1980s the single largest decade of construction and about 23% dating from 2000 or later. For anything built before 1978, federal lead-based paint disclosure applies. Older properties also bring the ordinary considerations of original systems, earlier building materials, and renovation work carried out across several owners.
The Agricultural Reserve is a different kind of purchase
Roughly 93,000 acres across the northwest of the county — about a third of its land area — has been zoned to remain in farming since 1980. Properties there carry lower-density zoning and commonly rely on private wells and on-site septic rather than public water and sewer. Neither is covered by a standard home inspection, and some loan programs set their own requirements for private systems.
Homeownership in Montgomery County runs at about 65.1% of occupied units, with median gross rent around $2,097. Median household income is about $140,837 and the median age is 40.6.
Moderately Priced Dwelling Units (MPDUs)
Montgomery County runs one of the oldest inclusionary housing programs in the country. Under the Moderately Priced Dwelling Unit program, certain residential developments must set aside a share of their units to be sold or rented at controlled prices. MPDUs are a genuinely distinctive feature of buying in this county, and they come with obligations that continue long after settlement.
The county’s published program rules include the following:
- An MPDU buyer must be a first-time homebuyer.
- An MPDU owner may not own other residential property.
- New MPDUs carry a control period of 30 years; a small number of older resale units carry shorter periods.
- During the control period the owner may not sell on the open market — the home must be sold through the county’s MPDU process at the Maximum MPDU Resale Price the county calculates, and a share of any profit above that price is owed to the county.
- Real estate agents involved in an MPDU transaction are required to disclose that these restrictions continue, and the county pursues legal action where the rules are violated.
None of that makes an MPDU a poor purchase. It makes it a different one. The trade is a controlled purchase price now in exchange for a controlled resale price later, and it is worth understanding in full before applying. Montgomery County’s Department of Housing and Community Affairs administers the program, maintains the applicant list and publishes the current requirements, and it is the authority on eligibility, required training and the resale formula.
Down payment assistance for Montgomery County buyers
Montgomery County buyers have access to two county-specific down payment assistance products delivered through the Maryland Mortgage Program, on top of the statewide programs available anywhere in Maryland.
Montgomery Homeownership Program
As the Maryland Mortgage Program describes it, this product may be used by any MMP-eligible borrower purchasing in Montgomery County. An MMP first mortgage comes with a second mortgage of up to $50,000 for down payment and closing costs, capped so that it does not exceed 40% of household income. The second mortgage carries a zero percent interest rate and repayment is deferred until sale, refinance, transfer, or 30 years, whichever comes first. Any funds not needed for down payment or closing costs are applied to principal curtailment — there is no cash back at closing. The minimum down payment is set by the loan’s insurer, and the second mortgage funds may be used for the borrower contribution.
Montgomery Employee Down Payment Assistance Loan (MEDPAL)
MEDPAL is for Maryland first-time homebuyers who are employees of approved Montgomery County departments and agencies, purchasing in Montgomery County. The program’s fact sheet lists the approved employers, and that list is the controlling document — county employment alone does not establish eligibility.
MEDPAL pairs an MMP first mortgage with a flat $50,000 zero-percent deferred second lien. The fact sheet is explicit that the amount is $50,000 exactly — no more and no less. Funds go first to down payment and closing costs, with the remainder applied to principal curtailment and no cash back. The borrower must bring 1% of the sales price to closing. The loan is repaid on sale, transfer or refinance, and is forgiven after 30 years.
MEDPAL borrowers must meet the MMP household income limits and the county’s Workforce Housing Income Limits. MEDPAL cannot be combined with MMP’s DPA Partner Match programs, though it can be combined with outside employer, builder or local assistance. The program has been available since May 2023 and runs, in the fact sheet’s words, until the funds are expended — worth confirming as current before building a purchase plan around it.
Maryland statewide programs
Both county products sit on top of a Maryland Mortgage Program first mortgage, so the statewide MMP rules — household income limits, purchase price limits, the homebuyer education requirement and the approved lender list — apply as well. MMP also offers products that stand on their own, including 1st Time Advantage, Flex, SmartBuy for buyers carrying student debt, and HomeAbility. Maryland additionally designates Targeted Areas where the first-time homebuyer requirement is waived and income limits may be higher; whether a specific Montgomery County address falls within one should be confirmed against the Maryland Mortgage Program’s own Targeted Area tool, because designations change.
Explore Maryland down payment assistance programs · How the Maryland Mortgage Program works
Important
Down payment and homebuyer assistance programs are subject to eligibility requirements, funding availability, program guidelines and change. Programs shown are examples and are not a complete list of assistance that may be available. Income limits, purchase-price limits, property requirements, first-time homebuyer requirements and other conditions may apply. A licensed mortgage professional can help review programs that may be available based on your individual circumstances.
Maryland Homebuyer Hub does not determine eligibility for any program and does not make mortgage loans. Some programs are available only through participating lenders; confirm current availability, funding and lender requirements with the program administrator.
Home financing resources
The loan program shapes the down payment, the mortgage insurance, the property standards and — for condominiums — whether a particular building qualifies at all.
Conventional loans
The broadest category, and the route most condominium purchases take. Low-down-payment options exist for some borrowers, private mortgage insurance generally applies below 20% down, and the lender reviews the condominium project as well as the borrower.
FHA loans
Lower down payment and more flexible credit guidelines. Condominium purchases require the project itself to be FHA approved, so confirm the building's status before writing an offer.
VA loans
Zero-down financing with no monthly mortgage insurance for eligible service members, veterans and surviving spouses. Entitlement rather than income drives what you can borrow, and VA maintains its own condominium project approval list.
Renovation financing
Finances the purchase and the repairs in one loan. Relevant across the roughly half of the county's housing built before 1980, where a property may not meet a standard program's condition requirements as-is.
USDA loans
Zero-down financing, but geographically limited and set by the exact property address. Much of Montgomery County sits inside the Washington urbanized area, so eligibility cannot be assumed — check a specific address against USDA's eligibility map.
Montgomery County’s conforming loan limit is set at the higher level that applies to the Washington–Arlington–Alexandria metropolitan area rather than the national baseline, which changes the point at which a conventional loan becomes a jumbo loan. A lender can confirm the current figure.
Learn how Maryland homebuying works
Most of what determines whether a purchase goes smoothly happens before you tour a single home: understanding what you can borrow, what assistance you might use, what your credit needs to look like, and what the Maryland contract and settlement process actually involves. Both Montgomery County assistance products run through the Maryland Mortgage Program, which carries its own homebuyer education requirement, so for many local buyers this is a necessary step rather than an optional one.
Maryland Homebuyer Hub runs a free first-time homebuyer seminar covering the process end to end, and publishes a full Maryland buying guide. Both are free, and neither requires you to work with anyone.
Attend the free Maryland homebuyer seminar · Read the Maryland home buying guide
Montgomery County Local Professional Spotlights
Montgomery County Spotlights are in production. Spotlights are recorded conversations with local professionals about the communities they serve, the buyers they work with, and what they wish first-time buyers knew earlier. They are published here as they are recorded.
Explore local professionals in Montgomery County
The Montgomery County professional directory is being built. Maryland Homebuyer Hub is adding local real estate agents, home inspectors, title and settlement companies, homeowners insurance professionals, movers and home service businesses county by county. Listings are free and no professional pays for placement.
Communities in Montgomery County
Montgomery County has a small number of incorporated municipalities and a large number of unincorporated communities, several of which are more populous than any of the incorporated towns. Where you buy determines which local government sets your property tax rate, permitting rules and services — and in an unincorporated area, that government is the county.
- RockvilleThe county seat and an incorporated city, with its own municipal property tax and permitting.
- GaithersburgAn incorporated city in the central I-270 corridor, incorporated in 1878.
- Takoma ParkAn incorporated city on the District of Columbia line, incorporated in 1890.
- KensingtonA small incorporated town inside the Beltway, incorporated in 1894.
- PoolesvilleAn incorporated town in the west of the county, within the Agricultural Reserve.
- Silver SpringUnincorporated and among the county's largest population centres; county government provides local services.
- BethesdaUnincorporated, adjoining the District of Columbia line and served directly by the county.
- GermantownUnincorporated, in the I-270 corridor and among the county's largest communities by population.
- WheatonUnincorporated, inside the Beltway and served directly by the county.
- PotomacUnincorporated, along the Potomac River in the county's southwest.
- OlneyUnincorporated, in the centre of the county north of the Beltway communities.
- ClarksburgUnincorporated, at the northern end of the I-270 corridor, where much of the county's recent construction has been concentrated.
Montgomery County homebuyer questions
How expensive is Montgomery County compared with the rest of Maryland?
By the measures on this page, it is the most expensive county covered on this site. The Census Bureau puts the median value of an owner-occupied home in Montgomery County at about $660,800, and the median asking price on active listings in August 2026 was about $590,000. Median household income is also the highest of the counties covered here, at about $140,837.
How much can I get from the Montgomery Homeownership Program?
Up to $50,000, and not more than 40% of household income, as a zero-percent second mortgage deferred until sale, refinance, transfer or 30 years. Anything beyond what is needed for down payment and closing costs goes to principal curtailment rather than back to you in cash.
Can I use down payment assistance on a condominium?
The county and state programs described above do not exclude condominiums, but the underlying first mortgage still has to work. Whether a specific condominium project qualifies depends on the loan program’s project review, not on the assistance program. Raise the building with a lender before making an offer.
Do I have to be a first-time buyer?
It depends on the program. MEDPAL requires a Maryland first-time homebuyer, and the MPDU program requires a first-time homebuyer. The Montgomery Homeownership Program is open to any MMP-eligible borrower buying in the county, and MMP itself has pathways for repeat buyers in Targeted Areas and for certain borrowers. Eligibility is determined by an approved lender against the current published rules.
What is an MPDU, and should I be looking at one?
An MPDU is a Moderately Priced Dwelling Unit — a home a developer is required to offer at a controlled price. The purchase price is below market, and in exchange the resale price stays controlled for up to 30 years and the home must be sold back through the county’s process. Whether that trade fits depends on how long you expect to own the home and what you want it to do for you financially.
Has the market softened?
On the listing measures, yes, over the past year: asking prices down about 8.5%, active listings up about 21.7%, and median days on market up from 38 to 43. Over longer periods the FHFA index shows Montgomery County home prices rising an average of about 6.2% a year over the five years to 2025 and about 4.2% a year over the ten years to 2025, with the 2024-to-2025 change under 2%. Past averages describe what happened. They are not a forecast.
Sources and data notes
Market figures come from Realtor.com residential listings data for Montgomery County, Maryland, retrieved from FRED at the Federal Reserve Bank of St. Louis, for August 2026 with August 2025 as the year-earlier comparison. Median list price reflects asking prices on active listings, not closed sale prices.
Population, income, home value, homeownership rate, rent, housing unit counts, units-in-structure shares and year-built shares come from the U.S. Census Bureau, American Community Survey 2024 1-year estimates for Montgomery County, Maryland. These are survey estimates and carry margins of error.
Appreciation figures are calculated from the Federal Housing Finance Agency All-Transactions House Price Index for Montgomery County, Maryland.
Program details for the Montgomery Homeownership Program and MEDPAL come from the Maryland Mortgage Program’s published Montgomery County specialty products page and the MEDPAL fact sheet. MPDU program rules come from Montgomery County’s published program materials. Program terms, funding availability and income limits change; confirm current details with the administering agency or an approved lender before relying on them.
This page is educational information about the Montgomery County housing market and available homebuyer programs. It is not an offer of credit, a commitment to lend, or a determination of eligibility for any program.