# Washington, DC housing market: renting vs owning in the capital

> Washington, DC buyers: a $733,400 median home vs $1,931 median rent, the monthly cost of owning, loan limits and what closing taxes add.

URL: https://mortgage-math-us.com/location/washington-dc/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

The median owner-occupied home in Washington is worth $733,400, about 2.0 times the US median. With 10% down at the 7.24% national average rate it costs about **$5,513 a month** — $3,582 a month more than the median rent of $1,931. Most Washington households rent, and at the city’s median household income of $109,707, Freddie Mac’s housing guideline supports a price of about $365,000.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Median home value, Washington | $733,400 | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=160XX00US1150000) | 2024 ACS 1-year |
| Median gross rent | $1,931/mo | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25064?g=160XX00US1150000) | 2024 ACS 1-year |
| Homes lived in by their owners | 40.9% | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25003?g=160XX00US1150000) | 2024 ACS 1-year |
| Median household income | $109,707/yr | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=160XX00US1150000) | 2024 ACS 1-year |
| Effective property tax rate | 0.63% | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=160XX00US1150000) | 2024 ACS 1-year |
| 2026 conforming loan limit, DC | $1,249,125 | [FHFA: Conforming Loan Limit Values](https://www.fhfa.gov/data/conforming-loan-limit) | 2026 |

## Washington next to other big cities and the nation

Washington is both a city and the District of Columbia, so its Census figures are the District’s figures — the useful comparisons are with other big cities and with the country. Washington’s median home is worth more than the national median and its median household income is higher, so its price-to-income ratio is 6.7 — against 7.4 in Boston, 9.6 in New York and 4.4 nationally.

*Washington compared with Boston, New York City and the US (Census ACS 2024 1-year)*

| | Washington | Boston | New York City | United States |
|---|---:|---:|---:|---:|
| Median home value | $733,400 | $722,800 | $778,600 | $360,600 |
| Median household income | $109,707 | $97,791 | $81,228 | $81,604 |
| Median gross rent | $1,931 | $2,196 | $1,811 | $1,487 |
| Home value ÷ annual rent | 31.7 | 27.4 | 35.8 | 20.2 |
| Share owner-occupied | 40.9% | 35.9% | 32.7% | 65.3% |
| Effective property tax rate | 0.63% | 0.62% | 0.86% | 0.89% |
| Median year built | 1960 | 1947 | 1953 | 1981 |

The median Washington home was built in 1960, older than the national median. Row houses, condos and co-ops are common, and condo or co-op fees come on top of the costs below.

## Renting vs owning in the District

Most Washington households rent: 40.9% of occupied homes are owner-occupied, against 65.3% nationally. The price-to-rent ratio is one way to see why. A median Washington home costs 31.7 years of median rent, a higher multiple than the national 20.2 — meaning buying is expensive relative to renting here, which tilts the math toward renting for shorter stays.

> **Worked example: Year one of owning the median $733,400 home vs renting at the median $1,931**
>
> | | Amount |
> |---|---:|
> | Monthly cost to own (10% down, tax, insurance, PMI) | $5,513 |
> | Median monthly rent | $1,931 |
> | Difference each month | $3,582 |
> | Principal paid down in the first year (equity you keep) | $6,401 |
> | Interest, property tax, insurance and PMI in the first year (costs you don’t get back) | $59,753 |
> 
> These are the unrecoverable costs of owning in year one. A renter’s unrecoverable cost is the rent itself: $23,172 a year. Owning catches up through price growth, rising rents and a growing share of principal in each payment — and loses ground to buying and selling costs.

The answer depends on how long you stay. The [rent vs buy calculator](https://mortgage-math-us.com/tools/rent-vs-buy-calculator/?state=DC&price=733000&rent=1931) opens with Washington’s median price and rent and shows the year when owning pulls ahead under your own assumptions for price growth and investment returns.

## What the median Washington home costs a month

With 10% down at 7.24%, the $660,060 loan carries $4,498 a month in principal and interest. Property tax at the District’s effective rate of 0.63% — below the national 0.89% — adds $385, insurance at Freddie Mac’s national $4.90 per $1,000 adds $299, and PMI at the midpoint of Freddie Mac’s range adds $330, for **$5,513** in all before any condo fee. Cash to close is the $73,340 down payment plus closing costs of $14,668–$36,670 at the CFPB’s typical range. Adjust the inputs in the [mortgage payment calculator](https://mortgage-math-us.com/tools/mortgage-payment-calculator/?price=733000&down=10&tax=0.63&state=DC).

## Income and the price it supports

At the median household income of $109,707, Freddie Mac’s 30% guideline allows $2,743 a month for housing. With 10% down at today’s average rate that buys about **$365,000** — $368,400 below the median value. Buying the median home on the same terms takes about $220,513 a year. Two incomes, a larger down payment or a smaller home are the usual ways to close that gap. See what your own numbers support in the [affordability calculator](https://mortgage-math-us.com/tools/affordability-calculator/?state=DC&income=109707).

## Loan limits in the District

The District is a high-cost area: its 2026 one-unit conforming loan limit is $1,249,125, above the national baseline of $832,750. A 10% down loan on the median home fits under the national baseline. With 10% down, prices up to about $925,000 keep the loan under the baseline and prices up to about $1,388,000 stay within the District’s limit; above that you would need a [jumbo loan](https://mortgage-math-us.com/loan-types/jumbo-loans/) or a bigger down payment.

## District recordation and transfer taxes

The District taxes both the recording of the deed and the transfer itself, and the combined rate steps up for higher-priced homes. At the median value the two taxes total about $21,269 ($10,634 each side if split evenly), an effective rate of 2.9% of the price. Even its base rate of 2.2% is the second-highest of the 51 state and District rates on this site. The [District of Columbia guide](https://mortgage-math-us.com/location/district-of-columbia/) explains the rates and who pays which tax, along with DC’s Home Purchase Assistance Program and DCHFA loans. The [closing cost calculator](https://mortgage-math-us.com/tools/closing-cost-calculator/?state=DC&price=733000) applies the District’s rules. For other East Coast markets, see [Boston](https://mortgage-math-us.com/location/boston-ma/) and [New York City](https://mortgage-math-us.com/location/new-york-ny/).

## Frequently asked questions

### What is the median home price in Washington, DC?

The Census Bureau’s 2024 American Community Survey puts the median value of owner-occupied homes in Washington at $733,400, against $360,600 nationally. Because the city and the District cover the same area, the figure is the same for both.

### Is it better to rent or buy in Washington, DC?

It depends on how long you stay. Owning the median home with 10% down costs about $5,513 a month against a median rent of $1,931, and a median home costs 31.7 years of median rent. Use a rent vs buy calculator with your own timeline.

### What is the property tax rate in Washington, DC?

The median DC homeowner pays $4,594 a year, an effective rate of about 0.63% of value according to Census data, below the national 0.89%.

### How much are closing taxes when you buy in DC?

The District’s recordation and transfer taxes total about $21,269 on a median-value home, usually split between buyer and seller. Lender, title and prepaid costs come on top.

### What is the conforming loan limit in DC?

The 2026 one-unit conforming loan limit in the District of Columbia is $1,249,125, above the national baseline of $832,750.

### How much income do you need to buy a home in DC?

About $220,513 a year keeps the payment on the median $733,400 home under 30% of gross income with 10% down at today’s average rate, before condo fees. The median DC household earns $109,707.

## Sources

- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=160XX00US1150000) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=160XX00US1150000) — Median household income (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=160XX00US1150000) — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25064?g=160XX00US1150000) — Median gross rent (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25003?g=160XX00US1150000) — Share of occupied homes lived in by their owners (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=010XX00US) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=010XX00US) — Median household income (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25064?g=010XX00US) — Median gross rent (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=010XX00US) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [Freddie Mac Research](https://www.freddiemac.com/research/insight/homeowners-insurance-costs) — Average homeowners insurance premium per $1,000 of home value (2023 data)
- [Freddie Mac My Home](https://myhome.freddiemac.com/buying/breaking-down-pmi) — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) — Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price) (Oct 28, 2026)
- [Freddie Mac My Home](https://myhome.freddiemac.com/blog/homebuying/how-much-can-you-afford) — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- [FHFA](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026) — 2026 baseline conforming loan limit (one-unit) (2026 limit)
- [FHFA: Conforming Loan Limit Values](https://www.fhfa.gov/data/conforming-loan-limit) — Conforming loan limit, District of Columbia (one unit) (2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25035?g=160XX00US1150000) — Median year homes were built (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25035?g=010XX00US) — Median year homes were built (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=160XX00US2507000) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=160XX00US3651000) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=160XX00US2507000) — Median household income (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=160XX00US3651000) — Median household income (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25064?g=160XX00US2507000) — Median gross rent (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25064?g=160XX00US3651000) — Median gross rent (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25003?g=160XX00US2507000) — Share of occupied homes lived in by their owners (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25003?g=160XX00US3651000) — Share of occupied homes lived in by their owners (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25003?g=010XX00US) — Share of occupied homes lived in by their owners (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=160XX00US2507000) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=160XX00US3651000) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25035?g=160XX00US2507000) — Median year homes were built (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25035?g=160XX00US3651000) — Median year homes were built (2024 ACS 1-year)
- [DC Office of the Chief Financial Officer](https://cfo.dc.gov/page/tax-rates-and-revenues-property-taxes) — District real estate transfer tax (Oct 28, 2026)
- [FHFA: Conforming Loan Limit Values](https://www.fhfa.gov/data/conforming-loan-limit)
- [DC Office of the Chief Financial Officer: Real property tax rates](https://cfo.dc.gov/page/tax-rates-and-revenues-property-taxes)

_General information, not financial advice._