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Rental property in Washington, DC

2026 Market Data & Investment Analysis

Gross Yield

4.6%

Annual rent / price

Median Home Price

$620,000

As of 2026-Q1

Median Monthly Rent

$2,400

Per month

Population

689,545

+0.2% / yr (5y avg)

Estimates based on median market data. Actual returns depend on your specific property. Source: Redfin / Zillow / U.S. Census Bureau, 2026-Q1.

Calculate your rental yield in Washington

Pre-filled with Washington's median values. Adjust to match your specific property.

Property Details

$

Total acquisition cost before taxes

$
$

HOA, insurance, property management

%

% of time the property is empty

%

% of purchase price (e.g. 2% = 2)

% of price

Rule of thumb: 1% of purchase price/yr

Results

Gross Rental Yield

4.65%

Net Rental Yield

3.03%

Cap Rate

3.03%

Monthly Cash Flow

$1,563.33

Annual Cash Flow

$18,760.00

> 6% — Excellent4–6% — Good< 4% — Low

Washington rental market at a glance

Median Home Price — 5-Year Trend

2021
$550,000
2022
$700,000
2023
$660,000
2024
$640,000
2025
$620,000

Median Monthly Rent — 5-Year Trend

2021
$2,100
2022
$2,300
2023
$2,380
2024
$2,400
2025
$2,400

While Washington's rental yields of 4.6% are below average, investors may benefit from strong long-term appreciation potential in this market.

Modest population growth of 0.2% per year indicates a stable but slowly growing rental market.

The vacancy rate of 4% is healthy, indicating strong rental demand and limited downtime between tenants.

What type of investment market is Washington?

Challenging Market

Washington presents challenges with both modest rental yields and limited population growth. Investors need to carefully analyze specific neighborhoods and property types to find opportunities that outperform the market average.

Strengths

  • Lower entry prices may reduce downside risk
  • Select neighborhoods and value-add properties can outperform the average

! Risks

  • Below-average gross yield of 4.6% limits income potential
  • Limited population growth reduces long-term rental demand
  • Higher due diligence required to identify strong-performing assets

Key Metrics

Gross Yield4.6%
Median Home Price$620,000
Median Monthly Rent$2,400
Population Growth+0.2% / yr
Vacancy Rate4%

How does Washington compare to nearby cities?

Washington vs Baltimore: 2.3 percentage point difference in gross yield.

CityMedian PriceMedian RentGross YieldPop. Growth
Baltimore, MD$225,000$1,3006.9%-0.7%
Philadelphia, PA$220,000$1,3507.4%-0.3%
Richmond, VA$310,000$1,5506%+0.7%
Virginia Beach, VA$320,000$1,6006%+0.2%
Charlotte, NC$370,000$1,7005.5%+1.4%

Common questions about investing in Washington

Is rental investing profitable in Washington?
Washington offers a gross rental yield of 4.6%, which is in line with the national average. With a median home price of $620,000 and median monthly rent of $2,400, profitability is achievable but depends heavily on financing terms and whether you can source properties below the median price.
What is the average rental yield in Washington?
The average gross rental yield in Washington is approximately 4.6%, based on a median home price of $620,000 and median monthly rent of $2,400 (as of 2026-Q1). Net yield, which accounts for vacancy, expenses, and maintenance, is typically 2–3 percentage points lower.
How does Washington compare to Baltimore for investors?
Washington has a gross yield of 4.6% compared to 6.9% in Baltimore, a difference of 2.3 percentage points. Baltimore offers higher current yield. Washington may compensate through stronger population growth and long-term appreciation potential.

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