Real Estate Investing in Derwood, Maryland (20855)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 20855 (Derwood, MD)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
No major risk flags on the data we track.
What’s happening in Derwood, MD (20855)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 20855 Derwood
ZIP 20855 inside Montgomery County looks affordable on the surface — median value of $687K — but the discount exists for reasons that a careful buyer should understand before committing.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 20855 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Regionally, 20855 sits on the difficult end of the MD spectrum. The worth a close look for read — for disciplined operators — is that pricing reflects the difficulty.
Employment concentration in 20855 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
Strategically, 20855 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Derwood:
Property Strategy for 20855
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 3BR | $537,349 | $3,410 | 4.6% | +4.6% | $179,116 |
| 4BR | $719,015 | $4,010 | 4.0% | +4.6% | $179,754 |
| 5BR | $826,102 | — | — | +4.9% | $165,220 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 20855 Compare?
| Metric | 20855 | Derwood | Maryland |
|---|---|---|---|
| Home Value | $687,291 | $687,291 | $424,997 |
| 5-Year CAGR | 2.2% | 2.2% | 4.9% |
| Avg Rent | $2,614 | $2,614 | - |
| Cap Rate | 3.0% | 3.0% | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 20855 (Derwood, MD). Anonymous, moderated, never written by AI.
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Property managers serving Montgomery County
Manage rentals here? List your business →American Community Management provides community association management and HOA services across Maryland, Virginia, and D.C. summary from their website
Iko Community Management provides HOA and community association management services in Columbia, MD and Suburban Maryland. summary from their website
Melan Property Management delivers proactive property management solutions for multifamily and commercial real estate across Maryland, Washington D.C., and Miami. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $687,291 |
| Monthly Rent | $2,614 |
| Price-to-Rent | 21.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.6% |
| Cap Rate | 3.0% |
| 5-Year IRR | 5.2% |
📈 Home Appreciation
| 1-Year | +0.3% ▲ |
| 3-Year CAGR | +1.9% ▲ |
| 5-Year CAGR | +2.2% ▲ |
| 10-Year CAGR | +3.5% ▲ |
🏠 Rent Trends
| 1-Year | +10.0% ▲ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.0%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 20855
Population: 16,557
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 20855
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 3,271 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What are home prices like in Derwood, MD?
Expect median prices around $687K in Derwood, MD. The market has run at a 0.0% 5-year CAGR, so entry costs have been steady.
Is house hacking profitable in Derwood, MD?
The house hack math a challenging in Derwood, MD. Owner-occupant buyers benefit from the $2,614/mo rents and $687K home values.
What kind of tenants rent in Derwood, MD?
Expect a solid tenant pool in Derwood, MD. The rental market absorbs $2,614/mo rents without meaningful friction.
How do landlord-tenant laws work in Derwood, MD?
Rental owners in Derwood, MD deal with a landlord-friendly legal framework. Most standard eviction processes run on reasonable timelines.
What real estate strategy is ideal for Derwood, MD?
Investors usually favor careful cash-flow rentals with hands-on management in Derwood, MD. With home values at $687K and rents near $2,614/mo, other strategies can work but produce even-keeled rather than outsized returns.
You know 20855 now. You don’t know where it ranks.
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How 20855 ranks in Washington-Arlington-Alexandria, DC-VA-MD-WV
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