CALCMONEY // HOME AFFORDABILITY // MD // POTOMAC
How much house can you afford in Potomac? Based on local median home prices, current MD mortgage rates, and Potomac property tax data.
$1,850,000
$12,214/mo
$523,455/yr
$957,840
Monthly housing costs of $12,214 represent 45.5% of Potomac's median gross monthly income ($26,833/mo). At 45.5%, median-income buyers in Potomac are significantly stretched — well above the 28% guideline. A larger down payment or higher income is required.
| Median Home Price | $1,850,000 |
| Down Payment (20%) | $370,000 |
| Loan Amount | $1,480,000 |
| Monthly PI Payment | $9,747 |
| Monthly Property Tax | $1,696 |
| Monthly Insurance Est. | $771 |
| Total Monthly PITI | $12,214 |
| Housing Cost % of Income | 45.5% |
| Required Income (28% rule) | $523,455/yr |
| Max Affordable Home | $957,840 |
$64,750
$15,489/mo
Potomac Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $1,850,000 | Potomac city median |
| Down Payment (20%) | $370,000 | Conventional loan |
| Monthly PITI | $12,214 | 6.9% rate, 30yr fixed |
| Required Income (28% rule) | $523,455 | Annual gross |
| Max Affordable Home | $957,840 | Based on median income |
| FHA Down (3.5%) | $64,750 | Minimum FHA |
| Housing Cost % of Income | 45.5% | Median income: $322,000/yr |
| Property Tax Rate | 1.1% | $20,350/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Potomac is $1,850,000, with a local 30-year mortgage rate of 6.9%. A buyer putting 20% down carries a loan of $1,480,000, generating a monthly P&I payment of $9,747. Adding property taxes ($1,696/mo) and homeowners insurance ($771/mo) brings total monthly PITI to $12,214.
Potomac's property tax rate of 1.1% is near the national average, adding a standard increment to monthly housing costs. On the Potomac median home, that is $1,696/month, or $20,350 per year.
Maryland levies a state income tax, which affects take-home pay and effective buying power. High-income earners in Potomac should factor state tax liability into their overall housing budget — mortgage interest may be deductible on both federal and state returns.
Using the 28% rule, a household earning Potomac's median income of $322,000/year can afford up to $7,513/month in total housing costs. Based on Potomac's mortgage rate of 6.9% and property tax rate of 1.1%, that translates to a maximum affordable home price of approximately $957,840 with 20% down on a 30-year loan.
To afford the median Potomac home priced at $1,850,000, you need an annual gross income of approximately $523,455. Total monthly housing costs (principal and interest of $9,747, property taxes of $1,696, and insurance of $771) come to $12,214/month, which equals 28% of the required income.
At the median home price of $1,850,000 and median household income of $322,000, the total monthly housing cost of $12,214 represents 45.5% of gross monthly income. This is well above the standard 28% threshold, making Potomac a challenging market for buyers at median income.
A conventional 20% down payment on the median Potomac home of $1,850,000 is $370,000. An FHA loan requires just 3.5% down — $64,750 — but adds mortgage insurance of roughly $1,265/month, bringing total FHA payments to $15,489/month.
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