Real Estate Investing in Gaithersburg, Maryland (20877)
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Should you buy in 20877 (Gaithersburg, MD)? Our answer, based on the numbers below.
Mixed — home prices are stretched relative to local incomes. Run the math on your specific situation.
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 Gaithersburg, MD (20877)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 20877 Gaithersburg
Turning to rents, ZIP 20877 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $477K median. It rewards specialists, not generalists.
Rent of $2,030/mo on a $477K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 20877 sits below the stated 0.0% once reality is priced in.
Regionally, 20877 sits on the difficult end of the MD spectrum. The a credible choice for read — for disciplined operators — is that pricing reflects the difficulty.
Who lives in 20877 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
Distressed ZIPs reward experience. impressive returns are possible in 20877, but they flow to investors who already understand how to operate in soft markets.
Here's what matters if you're considering buying a home in Gaithersburg:
Property Strategy for 20877
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $168,799 | $1,970 | 8.4% | +5.7% | $168,799 |
| 2BR | $206,251 | $2,200 | 7.7% | +6.5% | $103,126 |
| 3BR | $454,754 | $2,780 | 4.4% | +5.0% | $151,585 |
| 4BR | $600,571 | $3,260 | 3.9% | +5.4% | $150,143 |
| 5BR | $667,627 | — | — | +5.5% | $133,525 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 20877 Compare?
| Metric | 20877 | Gaithersburg | Maryland |
|---|---|---|---|
| Home Value | $476,868 | $482,981 | $424,997 |
| 5-Year CAGR | 2.5% | 2.6% | 4.9% |
| Avg Rent | $2,030 | $2,083 | - |
| Cap Rate | 3.3% | 2.8% | - |
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 20877 (Gaithersburg, 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 | $476,868 |
| Monthly Rent | $2,030 |
| Price-to-Rent | 19.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.1% |
| Cap Rate | 3.3% |
| 5-Year IRR | 5.8% |
📈 Home Appreciation
| 1-Year | -0.7% ▼ |
| 3-Year CAGR | +1.6% ▲ |
| 5-Year CAGR | +2.5% ▲ |
| 10-Year CAGR | +4.1% ▲ |
🏠 Rent Trends
| 1-Year | +4.1% ▲ |
| 3-Year CAGR | +2.2% ▲ |
| 5-Year CAGR | +4.4% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.3%). 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 20877
Population: 39,068
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 20877
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 is the average monthly rent in Gaithersburg, MD?
Average rent in Gaithersburg, MD is approximately $2,030/mo per month. Against $477K home values that yields a reasonable rent-to-price ratio.
How quickly do rentals get leased in Gaithersburg, MD?
Occupancy in Gaithersburg, MD runs measured with elevated vacancy. Well-priced units at $2,030/mo lease on reasonable timelines.
Is Gaithersburg, MD a good place for real estate investing?
Gaithersburg, MD scores 3.0/5 for investability. Home values sit at $477K and rents near $2,030/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
How do experienced investors play Gaithersburg, MD?
Most investors in Gaithersburg, MD run a careful cash-flow rentals with hands-on management strategy. It aligns with the 3.0/5 investability profile and the market fundamentals.
What is the average home sale price in Gaithersburg, MD?
Median home price in Gaithersburg, MD is near $477K, with a 5-year CAGR of 0.0%. Prices have been steady and supportive of buy-and-hold strategies.
You know 20877 now. You don’t know where it ranks.
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How 20877 ranks in Washington-Arlington-Alexandria, DC-VA-MD-WV
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