Real Estate Investing in Damascus, Maryland (20872)

Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.

Montgomery County • Population: 13,138 • Data updated: September 2026

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Should you buy in 20872 (Damascus, MD)? Our answer, based on the numbers below.

🏠 For Homebuyers
MIXED
Grade C (60/100)

Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.

📈 For Investors
MIXED
3.0 / 5 (47/100)

A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.

⚠️ Risks to Know
1 flag
  • High price-to-rent: Price-to-rent ratio 26.3 — hard to cash-flow at these prices.

• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.

What’s happening in Damascus, MD (20872)?

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3.0/ 5

Investability

Overall investment appeal

2.0/ 5

Appreciation

Long-term value growth

3.0/ 5

Cashflow ROI

Rental yield potential

Avg Home Value $551,809
Avg Monthly Rent $1,746
1% Rule ✗ Does Not Meet
Median Income $129,775
% Renters 11.6%

Market Analysis: 20872 Damascus

The 20872 ZIP covers a section of Damascus that demands careful diligence. Prices near $552K look accessible, but the work to make a deal cash flow is real.

Turning to rents, the numbers look inviting — $552K purchase price, 0.0% nominal cap — the work to hit that pro forma in 20872 is substantial and deserves full respect.

In practical terms, 20872 offers a low basis, the region around Damascus has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.

Resident income in 20872 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.

Strategically, 20872 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.

Explore the Data — Click a Tab Below
🏦 Current 30-yr Fixed Mortgage Rate: 6.76% as of Sep 10 Source: Freddie Mac PMMS

Here's what matters if you're considering buying a home in Damascus:

C+ Average
Buy Confidence Score: 63/100
Affordability
15/25
Appreciation
14/25
Stability
11/20
Timing
8/15
Rental backup
15/15
Affordability
Moderate
Homes cost 4.3× the median income
Value Trend
Stable (+0.3%)
How home values changed in the past year
Rental Backup
Strong
Could rent for $1,746/mo if you need to move
Market Conditions
BALANCED
Even conditions for buyers and sellers
Bottom Line: Mixed signals in this market. Research specific properties carefully and be prepared to negotiate.
🏠

Property Strategy for 20872

Which property type performs best in this market?

Best for Cash Flow
2BR
5.0% cap rate
Best for Appreciation
2BR
+6.1% 5yr CAGR
Best Overall Value
2BR
$138,589/bedroom
📊 Compare All Property Types →
Type Median Value Est. Rent Cap Rate 5yr CAGR $/Bedroom
2BR $277,177 $1,940 5.0% +6.1% $138,589
3BR $472,776 $2,450 3.7% +5.3% $157,592
4BR $628,567 $2,880 3.3% +5.3% $157,142
5BR $789,667 +5.6% $157,933

Market Trends

Home Value History (with trend line)

$577K$522K$466K$410K$354K$298KJul 2006Jul 2016Jul 2026

📊 How Does 20872 Compare?

Metric 20872 Damascus Maryland
Home Value $551,809 $551,809 $424,997
5-Year CAGR 2.7% 2.7% 4.9%
Avg Rent $1,746 $1,746 -
Cap Rate 2.5% 2.5% -
💡 Why Invest in 20872? Click to expand

With a 3/5 investability rating, this ZIP shows solid fundamentals for buy-and-hold investors.

📊 See where this ZIP ranks in our Best-of lists →
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Landlord Ground Truth

Real numbers from people who own or manage rentals in ZIP 20872 (Damascus, 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

HOA
Unclaimed — is this your business? Claim it free

Iko Community Management provides HOA and community association management services in Columbia, MD and Suburban Maryland. summary from their website

HOA
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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

Small multifamilyCommercial
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Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.

Investability
Good
Cap Rate
2.5%
Low
5yr Growth
+2.7%
Slow

📊 Market Snapshot

Home Value $551,809
Monthly Rent $1,746
Price-to-Rent 26.3:1
1% Rule ✗ Fails

💰 Return Metrics

Gross Yield 3.8%
Cap Rate 2.5%
5-Year IRR 5.2%

📈 Home Appreciation

1-Year +0.3% ▲
3-Year CAGR +1.9% ▲
5-Year CAGR +2.7% ▲
10-Year CAGR +4.1% ▲

🏠 Rent Trends

1-Year N/A
3-Year CAGR N/A
5-Year CAGR N/A
Negative Leverage — IRR / Tax Play Cap Rate: 2.5%  |  30yr Rate: 6.8%
Leverage reduces cash returns at current rates.

The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.5%). 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.

Vacancy
5.5%
Low risk
Landlord Climate
4.0/5
Friendly
Value Trend (5yr)
+2.7%
Stable
Eviction process: Moderate Rent control: Moderate

Demographics in 20872

Population: 13,138

💰 Median Household Income
$129,775
This area
$129,775
State
$107,932
USA
$74,580
🏠 Renter Occupied
11.6%
This area
11.6%
State
23.8%
USA
34.0%
💼 Unemployment Rate
3.2%
This area
3.2%
State
-20.0%
USA
3.7%
🎓 College Educated
46.2%
This area
46.2%
State
10.6%
USA
33.7%
👤 Median Age
41.7 years
This area
41.7 years
State
1.9 years
USA
38.9 years
🏚️ Vacancy Rate
5.5%
This area
5.5%
State
11.4%
USA
10.5%
👥 Population by Ethnicity
White 68.9%
Other/Mixed 13.2%
Black/African American 12.0%
Hispanic/Latino 11.1%
Asian 5.8%
👶 Under 18
21.1%
This area
21.1%
USA
22.0%
👴 65 and Over
15.6%
This area
15.6%
USA
17.3%
📊 Poverty Rate
4.4%
This area
4.4%
USA
11.5%

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 20872

A+ Avg School Grade
5 Schools
13.8:1 Avg Class Size
$20,473 Avg Per Pupil

Schools in This ZIP Code

A+ Excellent

Damascus Elementary

📚 K – 05 Elementary
👥
346 Students
👨‍🏫
10.9:1 Class Size
💰
$20,473 Per Student
A+ Excellent

Clearspring Elementary

📚 Pre-K – 05 Elementary
👥
539 Students
👨‍🏫
12.7:1 Class Size
💰
$20,473 Per Student
A+ Excellent

Lois P. Rockwell Elementary

📚 Pre-K – 05 Elementary
👥
527 Students
👨‍🏫
14.3:1 Class Size
💰
$20,473 Per Student
A+ Excellent

John T. Baker Middle School

📚 06 – 08 Middle
👥
842 Students
👨‍🏫
14.6:1 Class Size
💰
$20,473 Per Student
A Very Good

Damascus High

📚 09 – 12 High School
👥
1,398 Students
👨‍🏫
16.5:1 Class Size
💰
$20,473 Per Student
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

3 Nearby 3,271 Off-Campus Students
C+
The Temple-A Paul Mitchell Partner School
167 students · 13.5 mi
C+
Montgomery College
17,780 students · 13.7 mi
C
Hood College
2,078 students · 14.0 mi

Investor Insight: With 3,271 students living off-campus nearby, this area has strong rental demand from the college population.

Frequently Asked Questions

Is Damascus, MD a good market for buy-and-hold investors?

The 3.0/5 investability rating in Damascus, MD reflects its $552K prices and $1,746/mo rents. Investors generally consider it a solid option within MD.

How much is rent in Damascus, MD?

Investors in Damascus, MD typically see rents near $1,746/mo per month against $552K home values - a solid setup for rental cash flow.

Are there empty rentals in Damascus, MD?

Rental vacancy in Damascus, MD is elevated. Investors should budget normal turnover but not chronic empty units.

What real estate strategy is ideal for Damascus, MD?

A careful cash-flow rentals with hands-on management strategy Damascus, MD best. The market produces steady results for that approach at the $552K price point.

Is Damascus, MD landlord-friendly?

Damascus, MD operates under MD law, which is landlord-friendly overall for landlords. Expect consistent treatment in typical lease and eviction cases.

You know 20872 now. You don’t know where it ranks.

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How 20872 ranks in Washington-Arlington-Alexandria, DC-VA-MD-WV

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