Cost of Living in Potomac, MD
Population 46,230 · Maryland · Data vintage 2023
(100 = US avg)
Potomac's housing market reflects its status as a high-earning metro: $1.1 million for a typical home, 263% above the US median, paired with household incomes around $239,205 that put it in the upper third of the state.
Located 11 miles northwest of Arlington, Potomac falls within that metro's commuting orbit. Median home values run roughly 28% higher than Arlington's $865,000.
Cost Overview
Scale: 100 = US national average. Green < 90, Red > 110.
About the Cost of Living in Potomac
The median home value in Potomac is $1,105,900 — 263% above the national median of $305,000. Median rent runs $2,616/month, 99% higher than the national median of $1,314/month. The median household income of $239,205/year is 221% higher than the US median of $74,580. The local unemployment rate is 3.6%, below the national average of 4.8%. Maryland's top state income tax rate is 5.8% and the combined sales tax is 6.0%. Overall, Potomac has a cost of living index of 297 versus the US average of 100, meaning it is 197% more expensive.
🏠 Housing
HUD Fair Market Rents by Bedroom
💰 Estimated Monthly Budget
Estimates based on median data and national averages. Actual costs vary.
🛒 Food & Groceries
National BLS average prices (2023). Local prices may vary.
🚗 Transportation
Commute Mode
⚡ Utilities
📋 Taxes
💼 Income & Employment
🎓 Education
👥 Demographics
💨 Air Quality
EPA AQS 2023 — county-level monitoring data
Frequently Asked Questions
What is the cost of living in Potomac, MD?
Potomac has a cost index of 297 (100 = national average). It is 197% above the national average.
What is average rent in Potomac, MD?
The median gross rent in Potomac is $2,616 per month based on 2023 Census data.
What is the average home price in Potomac?
The median home value in Potomac is $1,105,900 according to Zillow and Census data.
What is the median income in Potomac?
The median household income in Potomac is $239,205 per year (2023 ACS 5-year estimates).
What is the sales tax in Potomac, MD?
The combined state and local sales tax rate in Potomac is 6.0%. The Maryland state income tax top rate is 5.8%.
Is Potomac, MD affordable?
Potomac is above average in cost of living, with an index of 297 — about 197% higher than the national average.
Potomac at a Glance
- Population
- 46,230
- Median Income
- $239,205
- Home Value
- $1,105,900
- Median Rent
- $2,616/mo
- Unemployment
- 3.6%
- Sales Tax
- 6.0%
Nearby Cities
Explore county-level cost of living data
Maryland Rankings
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