Potomac, MD

Very High · 252

Maryland · Population 46,230 · Updated March 2026

$2,616
Median Rent / Month
$239,205
Median Income
$1,105,900
Median Home Value
$3,158
Owner Costs / Month

Affordability

How far your income goes in Potomac

13.1%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in Maryland

State-level tax rates that affect your costs

5.75%
Income Tax (Top Rate)
6.0%
Sales Tax
1.07%
Property Tax Rate

Estimated Annual Costs

$31,392
Annual Rent
$13,754
State Income Tax
$11,833
Property Tax (est.)

Cost of Living Overview

Potomac has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 252 (where 100 equals the national median), Potomac residents can expect to pay median rent of $2,616/month while earning a median household income of $239,205/year.

The median home value in Potomac, MD is $1,105,900, with typical monthly owner costs around $3,158 including mortgage, insurance, and taxes. The median rent-to-income ratio of 13.1% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

Maryland has a moderate income tax rate of 5.75%. Combined with a 6.0% sales tax rate and 1.07% effective property tax rate, the overall tax environment is a factor in the total cost of living in Potomac.

Frequently Asked Questions

Common questions about living costs in Potomac

What is the cost of living in Potomac, MD?
The cost of living index in Potomac, MD is 252 (US average = 100). Median monthly rent is $2,616, median household income is $239,205/year, and the median home value is $1,105,900.
Is Potomac, MD affordable?
No, Potomac is more expensive than the national average with a cost index of 252. The rent-to-income ratio is 13.1%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Potomac, MD?
The median gross rent in Potomac, MD is $2,616 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $31,392.
What is the median household income in Potomac?
The median household income in Potomac, MD is $239,205 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Maryland?
Maryland has a top income tax rate of 5.75%, a sales tax of 6.0%, and an effective property tax rate of 1.07%.