Lusby is home to the best residential real estate investment market in Maryland.
The 20657 zip code in Lusby presents the greatest opportunity for investors among the 920 individual real estate markets in Maryland we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
Top 5 Maryland residential real estate markets
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | Lusby | 100 | 3.1 | 37.56% |
| 2 | Great Mills | 99.3 | 2.6 | 33.27% |
| 3 | Belcamp | 99.3 | 2.9 | 42.28% |
| 4 | Abingdon | 98 | 3.3 | 38.54% |
| 5 | Federalsburg | 97.3 | 3.7 | 50.72% |
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1. Lusby
We've identified the 20657 zip code in Lusby as Maryland's best real estate investment market. Here's why.
🔎 Key data about Lusby
| Data point | Value | Rank in state (of 920 markets) |
|---|---|---|
| Zip code | 20657 | N/A |
| InvestScore | 100 | Highest |
| Typical property value | $340,352[1] | 57th lowest |
| Five-year appreciation | 37.56%[2] | 53rd highest |
| Household income | $110,669[3] | 106th highest |
| Affordability ratio | 3.1 | 13th most affordable |
| Five-year population growth | 12.8%[4] | 31st highest |
| Unemployment rate | 3.6%[5] | 66th lowest |
| Property taxes | $2,834[6] | 38th lowest |
| Educational attainment | 29.8%[7] | 169th highest |
Lusby (zip code 20657) is the best residential real estate investment market in Maryland. It has the 53rd highest property value appreciation among markets we evaluated, with a 37.56% appreciation of the typical property over the last five years.
Lusby is the 13th most affordable market among the 920 Maryland markets we evaluated, with an affordability ratio of 3.1.
2. Great Mills
The 20634 zip code in Great Mills is Maryland's second-best residential real estate investment market.
🔎 Key data about Great Mills
| Data point | Value | Rank in state (of 920 markets) |
|---|---|---|
| Zip code | 20634 | N/A |
| InvestScore | 99.3 | 2nd highest |
| Typical property value | $334,336[8] | 52nd lowest |
| Five-year appreciation | 33.27%[9] | 112th highest |
| Household income | $131,042[10] | 59th highest |
| Affordability ratio | 2.6 | 6th most affordable |
| Five-year population growth | 5.9%[11] | 80th highest |
| Unemployment rate | 0.6%[12] | 3rd lowest |
| Property taxes | $2,785[13] | 35th lowest |
| Educational attainment | 38%[14] | 126th highest |
The 20634 zip code in Great Mills features a typical property value of $334,336, the 52nd lowest in the state.
Property values have appreciated 33.27% over the past five years, the 112th highest increase among evaluated markets in the state. Great Mills homes have an affordability ratio of 2.6, the 6th most affordable in the state.
3. Belcamp
The 21017 zip code in Belcamp comes in at No. 3 in our ranking of residential real estate investment markets in Maryland.
🔎 Key data about Belcamp
| Data point | Value | Rank in state (of 920 markets) |
|---|---|---|
| Zip code | 21017 | N/A |
| InvestScore | 99.3 | 3rd highest |
| Typical property value | $276,334[15] | 33rd lowest |
| Five-year appreciation | 42.28%[16] | 26th highest |
| Household income | $96,424[17] | 137th highest |
| Affordability ratio | 2.9 | 10th most affordable |
| Five-year population growth | -8.8%[18] | 216th highest |
| Unemployment rate | 1.4%[19] | 8th lowest |
| Property taxes | $2,377[20] | 20th lowest |
| Educational attainment | 37.5%[21] | 127th highest |
With a typical property value of $276,334, Belcamp's 21017 zip code features the 33rd lowest property values in the state.
Belcamp homes have an affordability ratio of 2.9, the 10th most affordable among the markets we evaluated.
4. Abingdon
The 21009 zip code in Abingdon ranks No. 4 among Maryland's residential real estate investment markets.
🔎 Key data about Abingdon
| Data point | Value | Rank in state (of 920 markets) |
|---|---|---|
| Zip code | 21009 | N/A |
| InvestScore | 98 | 4th highest |
| Typical property value | $360,771[22] | 70th lowest |
| Five-year appreciation | 38.54%[23] | 48th highest |
| Household income | $108,703[24] | 48th highest |
| Affordability ratio | 3.3 | 22nd most affordable |
| Five-year population growth | 9.0%[25] | 59th highest |
| Unemployment rate | 3.4%[26] | 51st lowest |
| Property taxes | $2,971[27] | 47th lowest |
| Educational attainment | 38.3%[28] | 125th highest |
Property values in Abingdon's 21009 zip code have seen the 48th highest increase among evaluated markets in the state, with an appreciation of 38.54% over the past five years.
Abingdon's affordability ratio of 3.3 makes it the 22nd most affordable among the 920 markets we evaluated.
5. Federalsburg
The 21632 zip code in Federalsburg rounds out our top five residential real estate investment markets in Maryland.
🔎 Key data about Federalsburg
| Data point | Value | Rank in state (of 920 markets) |
|---|---|---|
| Zip code | 21632 | N/A |
| InvestScore | 97.3 | 5th highest |
| Typical property value | $220,139[29] | 18th lowest |
| Five-year appreciation | 50.72%[30] | 11th highest |
| Household income | $59,135[31] | 11th highest |
| Affordability ratio | 3.7 | 73rd most affordable |
| Five-year population growth | 11.1%[32] | 39th highest |
| Unemployment rate | 3.7%[33] | 73rd lowest |
| Property taxes | $1,864[34] | 8th lowest |
| Educational attainment | 14.6%[35] | 225th highest |
Property values in Federalsburg's 21632 zip code rose 50.72% over the last five years, ranking the city 11th highest among evaluated markets in Maryland.
Federalsburg homes have an affordability ratio of 3.7, the 73rd most affordable among the markets we evaluated.
How we rank residential real estate markets in Maryland
We evaluated 920 markets on eight metrics, and then assigned an InvestScore based on their weighted and combined rankings. Each market corresponds to a specific zip code in Maryland.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase. We assign a weight of 20% to typical property values.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results. We assign a weight of 20% to property value appreciation.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing. We assign a weight of 10% to median household income. We assign a weight of 10% to median household income.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand. We assign a weight of 15% to the affordability ratio.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip. We assign a weight of 10% to population growth.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes. We assign a weight of 15% to unemployment rate.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates. We assign a weight of 10% to property tax.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes. We assign a weight of 15% to educational attainment.
Disclaimer: The information contained in this article isn't intended as, and shall not be understood or constituted as, financial advice. The information in this article isn't a substitute for financial advice from an investment professional or real estate agent who is aware of the facts and circumstances of your financial situation or the specifics of any individual property.
