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📊 District of Columbia · Housing Market 2026

Washington Housing Market Data 2026

Median prices, cap rates, rent benchmarks, and investment outlook for Washington, District of Columbia — data sourced from Zillow, HUD FMR, and Census ACS.
🔴 Weak Market Median Price:$580,000 Cap Rate:3.8% Vacancy:6.8% 12-Mo Outlook:→ Neutral
$580,000
Median Home Price
YoY: +1.5%
3.8%
Avg Cap Rate
Cash-on-cash: 3.8%
$2,800
Median Rent (2BR/mo)
YoY: +1.5%
6.8%
Vacancy Rate
Moderate
30 days
Days on Market
Fast-moving
$580,000 / 3.8%
Price / Cap Rate
🔴 Weak Market

📈 Market Analysis — Washington, DC

**Market Outlook: Stability Over Appreciation** Washington, D.C. enters 2026 as a mature

🔮 12-Month Predictive Outlook View All Markets →

Price Trend
→ Neutral
12-mo forecast: $589,267
Confidence: 92%
Rent Growth
→ Stable
12-mo forecast: $2,843/mo
Confidence: 90%
Emerging Score
37/100
Confidence: 92%
Price Momentum +1.5% YoY (national: +2.3%)
Days on Market 30 days (national avg: 38)
Predictions are rule-based forecasts based on price momentum, rent data, vacancy trends, and population growth. Not investment advice. See full rankings →

🏘️ Rent Breakdown — HUD Fair Market Rents

HUD Fair Market Rent represents the 40th percentile of gross rents paid by recent movers in Washington. Used as a benchmark for Section 8 voucher limits and rental market analysis.

Bedroom Count Monthly Rent (HUD FMR) Annual Rental Income Est. Cap Rate at Median Price
1 Bedroom $2,200/mo $26,400/yr 3.2% est.
2 Bedrooms $2,800/mo $33,600/yr 4.1% est.
3 Bedrooms $3,500/mo $42,000/yr 5.1% est.
* Estimated cap rate uses the 70% rule (30% reserved for expenses). Actual cap rates vary by property and management style.

💰 Cost of Investing in Washington

Cost ItemRate / AmountEst. Annual CostMonthly Cost
Property Tax 0.6% effective rate $3,190 $266/mo
Homeowners Insurance District of Columbia avg premium $1,500 $125/mo
Total Tax + Insurance Based on median home price of $580,000 $391/mo

These figures reflect state-level averages. Property tax rates vary by county; insurance costs vary by property type, age, and claims history. Source: Tax Foundation (2025), NAIC (2024).

⚖️ How Washington Compares to National Averages

Avg Cap Rate
3.8%
National avg: 5.5%
Below average
Median Home Price
$580,000
National avg: $371,696
Above national avg
Vacancy Rate
6.8%
National avg: 7.6%
✓ Low vacancy
2BR Median Rent
$2,800/mo
National avg: $1,753/mo
Days on Market
30 days
National avg: 38 days
Price Growth YoY
+1.5%
National avg: +2.3%

National averages calculated across all 69 tracked US investor markets. A cap rate above the national average suggests stronger cash flow potential relative to purchase price.

🗺️ Nearby Markets in District of Columbia

No other markets in this state.

View all District of Columbia markets →
Related Guides & Resources
BRRRR Strategy Guide Vacancy Rate Calculator Rental Yield Calculator Market Rankings Best Market Data Tools All Markets
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