Real Estate Investing in Madison, Maryland (21648)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 21648 (Madison, MD)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- High vacancy: 15.6% of homes vacant — above national norms.
• Limited market data — this is a very small market; averages are built from few observations and can swing widely. • Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Madison, MD (21648)?
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Market Analysis: 21648 Madison
ZIP 21648 in Madison, MD carries a impressive set of headwinds. Home values near $297K and rents of $1,341/mo sit inside a market where underwriting has to be tight.
Stepping back, the numbers look inviting — $297K purchase price, 0.0% nominal cap — the work to hit that pro forma in 21648 is substantial and deserves full respect.
Regionally, 21648 sits on the difficult end of the MD spectrum. The a solid fit for read — for disciplined operators — is that pricing reflects the difficulty.
Demographically, 21648 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
Distressed ZIPs reward experience. solid returns are possible in 21648, 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 Madison:
Market Trends
Home Value History (with trend line)
📊 How Does 21648 Compare?
| Metric | 21648 | Madison | Cambridge, MD | Maryland |
|---|---|---|---|---|
| Home Value | $297,064 | $297,064 | N/A | $424,997 |
| 5-Year CAGR | N/A | N/A | N/A | 4.9% |
| Avg Rent | $1,341 | $1,341 | N/A | - |
| Cap Rate | 3.5% | 3.5% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 21648 (Madison, MD). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $297,064 |
| Monthly Rent | $1,341 |
| Price-to-Rent | 18.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.4% |
| Cap Rate | 3.5% |
| 5-Year IRR | 6.9% |
📈 Home Appreciation
| 1-Year | +3.7% ▲ |
| 3-Year CAGR | +3.4% ▲ |
| 5-Year CAGR | N/A |
| 10-Year CAGR | N/A |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.5%). 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.
Demographics in 21648
Population: 104
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
Frequently Asked Questions
What is the typical rental rate in Madison, MD?
Madison, MD rentals go for roughly $1,341/mo a month. That puts gross yield in solid territory relative to $297K acquisition costs.
Is Madison, MD landlord-friendly?
Madison, MD operates under MD law, which is landlord-friendly overall for landlords. Expect consistent treatment in typical lease and eviction cases.
How tight is the rental market in Madison, MD?
Occupancy in Madison, MD runs predictable with elevated vacancy. Well-priced units at $1,341/mo lease on reasonable timelines.
Are renters plentiful in Madison, MD?
Tenant demand in Madison, MD is solid. The local workforce $1,341/mo rents across most rental classes.
Is Madison, MD a good market for buy-and-hold investors?
With a 2.0/5 investability score, Madison, MD ranks as a solid market for rental property investors. Median prices of $297K and rents of $1,341/mo drive the underlying numbers.
You know 21648 now. You don’t know where it ranks.
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How 21648 ranks in Cambridge, MD
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