Top 5 Residential Real Estate Investment Markets in Maryland

Trent Seigfried's Photo
By Trent Seigfried Updated May 28, 2024
's Photo
Edited by Michael Yessis

SHARE

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

RankCity InvestScore Affordability Property value appreciation
1Lusby1003.137.56%
2Great Mills99.32.633.27%
3Belcamp99.32.942.28%
4Abingdon983.338.54%
5Federalsburg97.33.750.72%
Show more

Looking to buy or sell in Maryland?

Considering investing in Lusby, the hottest investment market in Maryland (or another top market)? Own a property in Great Mills, Belcamp, or another part of Maryland and are looking to sell? Let us match you with a top real estate agent in your city!

1. Lusby

We've identified the 20657 zip code in Lusby as Maryland's best real estate investment market. Here's why.

πŸ”Ž Key data about Lusby

Data pointValueRank in state (of 920 markets)
Zip code20657N/A
InvestScore 100Highest
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 3.113th 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
Show more

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.

πŸ”Ž Key data about Great Mills

Data pointValueRank in state (of 920 markets)
Zip code20634N/A
InvestScore 99.32nd 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 2.66th 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
Show more

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.

πŸ”Ž Key data about Belcamp

Data pointValueRank in state (of 920 markets)
Zip code21017N/A
InvestScore 99.33rd 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 2.910th 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
Show more

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.

πŸ”Ž Key data about Abingdon

Data pointValueRank in state (of 920 markets)
Zip code21009N/A
InvestScore 984th 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 3.322nd 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
Show more

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.

πŸ”Ž Key data about Federalsburg

Data pointValueRank in state (of 920 markets)
Zip code21632N/A
InvestScore 97.35th 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 3.773rd 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
Show more

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.

Article Sources

[1] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[2] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[7] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[8] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[9] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[14] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[15] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[16] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[21] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[22] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[23] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[28] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[29] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[30] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[35] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.

Authors & Editorial History

Our experts continually research, evaluate, and monitor real estate companies and industry trends. We update our articles when new information becomes available.

Better real estate agents at a better rate

Enter your zip code to see if Clever has a partner agent in your area
If you don't love your Clever partner agent, you can request to meet with another, or shake hands and go a different direction. We offer this because we're confident you're going to love working with a Clever Partner Agent.