Real Estate Investing in Frederick, Maryland (21704)
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Should you buy in 21704 (Frederick, 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 Frederick, MD (21704)?
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Market Analysis: 21704 Frederick
The 21704 ZIP in Frederick, MD is a local-operator market. Outside capital chasing a $656K entry has to pair deep knowledge with the discount.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 21704 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
The gap between 21704 and stronger Frederick ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
Who lives in 21704 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
The right play in 21704 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Frederick:
Property Strategy for 21704
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 3BR | $546,438 | $3,620 | 4.8% | +7.0% | $182,146 |
| 4BR | $706,055 | $4,260 | 4.3% | +7.4% | $176,514 |
| 5BR | $922,079 | — | — | +8.0% | $184,416 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 21704 Compare?
| Metric | 21704 | Frederick | Maryland |
|---|---|---|---|
| Home Value | $656,191 | $397,349 | $424,997 |
| 5-Year CAGR | 3.8% | 4.0% | 4.9% |
| Avg Rent | $3,031 | $2,391 | - |
| Cap Rate | 3.6% | 3.8% | - |
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 21704 (Frederick, MD). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $656,191 |
| Monthly Rent | $3,031 |
| Price-to-Rent | 18.0:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.5% |
| Cap Rate | 3.6% |
| 5-Year IRR | 7.5% |
📈 Home Appreciation
| 1-Year | +0.9% ▲ |
| 3-Year CAGR | +2.3% ▲ |
| 5-Year CAGR | +3.8% ▲ |
| 10-Year CAGR | +4.2% ▲ |
🏠 Rent Trends
| 1-Year | +15.1% ▲ |
| 3-Year CAGR | +8.1% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.6%). 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 21704
Population: 19,623
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 21704
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 767 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Does a duplex house hack pencil in Frederick, MD?
Frederick, MD is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $656K price point reasonable to enter.
Is the tenant base reliable in Frederick, MD?
Frederick, MD draws a even-keeled base of working renters. Demand at the $3,031/mo rent level is reasonable for standard single-family and small multi rentals.
What is the average monthly rent in Frederick, MD?
Rental rates in Frederick, MD average $3,031/mo. Tenant demand and $656K home values make the yield look reasonable by investor standards.
What investment strategy works best in Frederick, MD?
The best-fit strategy in Frederick, MD is careful cash-flow rentals with hands-on management. That approach the rent and price profile of the market.
How do home values compare in Frederick, MD?
Frederick, MD median home values land near $656K. That is reasonable territory for investors looking at $3,031/mo-per-month rentals.
You know 21704 now. You don’t know where it ranks.
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How 21704 ranks in Washington-Arlington-Alexandria, DC-VA-MD-WV
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