Photo: PersianDutchNetwork · CC BY-SA 4.0Even on the area’s higher pay, Derwood costs more to live in than 76% of U.S. towns
About the same as a year ago, 46% above the Maryland typical home.
Census 2020–24 home values, rents, tax bills and cost burden, measured against the median household income of the Washington-Arlington-Alexandria, DC-VA-MD-WV metro area ($127K). How TownRatings grades cost of living
Only 4 sales in May 2026: in a market this size, monthly medians swing a lot, so the typical value is the steadier guide.
The grade measures what housing costs against what households in the area earn. Derwood’s area earns well above the typical U.S. town ($127K against $74K), but homes, rent and taxes here run higher still. Owners keep up better than renters: 18% of owners pay 30% or more of income for housing (typical U.S. town: 20%), against 52% of renters.
In dollars
- $622Ktypical home, 46% above the Maryland typical homeZillow, September 2026
- $2,700a month for a two-bedroom, utilities includedHUD Fair Market Rent, 2026
- 109prices across the Washington metro, where the U.S. is 100 (housing 151)BEA Regional Price Parities, 2024
In paychecks the grade
- 5.7 yrsof area income buys the typical home; the typical U.S. town: 3.3$127K, Washington-area income
- 16%of area income goes to the median rent; the typical U.S. town: 18%Census 2020–24
- 52%of renters pay 30%+ of income for housing; across Maryland: 52%Census 2020–24
- 18%of owners do; the typical U.S. town: 20%Census 2020–24
What stands out about housing in Derwood
What’s behind Derwood’s grade
Measured against what households in the area earn, Derwood is more affordable than 24% of U.S. towns. Home prices pull the grade down most; rent holds it up.
Prices here have kept pace with Maryland: up 11.0% in five years, against 13.3% statewide (Zillow).
Up 11% in five years
About the same pace as Maryland (13.3%).
Show as a table
| January | Derwood | Maryland |
|---|---|---|
| 2017 | $445,000 | $288,000 |
| 2018 | $456,000 | $299,000 |
| 2019 | $478,000 | $308,000 |
| 2020 | $490,000 | $320,000 |
| 2021 | $529,000 | $347,000 |
| 2022 | $564,000 | $381,000 |
| 2023 | $578,000 | $395,000 |
| 2024 | $597,000 | $409,000 |
| 2025 | $627,000 | $424,000 |
| 2026 | $623,000 | $426,000 |
| September 2026 | $622,000 | $425,000 |
A typical Derwood home worth $440K in October 2016 is worth about $622K today.
Zillow Home Value Index: the typical value of all homes (middle third), smoothed and seasonally adjusted, through September 2026.
A typical home costs 5.7 years of area income
The calculator starts from the area income the grade uses. Switch to Derwood’s own median, or type yours.
That’s $126K short of a typical Derwood home.
A two-bedroom rents for about $2,700 a month here, $1,010 less than owning.
An estimate, not a loan offer: payments of up to 28% of income, a 30-year fixed loan, Derwood’s typical property tax (0.88% of value a year, from the Census) and insurance of about 0.35%. Mortgage insurance, HOA fees and other debts aren’t included.
A two-bedroom rents for about $2,700
Renters already here pay a median of $1,676, so moving in tends to cost more than staying put.
Fair Market Rent a month, utilities included
U.S. Department of Housing and Urban Development, Fair Market Rents by ZIP code (Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area): the 40th-percentile rent plus utilities for a standard unit. Median rent and renters: U.S. Census Bureau, American Community Survey.
High tax bills, but a low tax rate
The median bill is $6,322 (Maryland: $4,093), because homes cost more. As a share of value it’s 0.88% a year, against 0.97% statewide.
Census American Community Survey 2020–24: the median real-estate tax bill homeowners report, and that bill ÷ the median home value. Bills include town, school and county taxes. The Census reports bills over $10,000 only as “$10,000+”.
The rest of a budget near Derwood
Only figures published free for the whole country, each labeled with the area it covers: the Washington-Arlington-Alexandria, DC-VA-MD-WV metro area, or Maryland. Groceries follow the goods price level; nobody publishes them town by town.
| Cost | Here | Compared with | Area | Source |
|---|---|---|---|---|
| Prices overall U.S. = 100 | 109 | MD 105 | metro | BEA, 2024 |
| Goods (groceries, clothing, cars…) U.S. = 100 | 105 | MD 103 | metro | BEA, 2024 |
| Utilities U.S. = 100 | 107 | MD 111 | metro | BEA, 2024 |
| Other services U.S. = 100 | 102 | MD 102 | metro | BEA, 2024 |
| Electricity cents per kWh, homes | 21.4¢ | U.S. 18.3¢ | state | EIA, July 2026 |
Price levels: U.S. Bureau of Economic Analysis, Regional Price Parities 2024 (metro area and state). Electricity: U.S. Energy Information Administration, Electric Power Monthly, table 5.6.A.
Derwood vs. its neighbors
Of the 1 towns here with a Zillow value, Derwood has the lowest. Redland has no Zillow value, so it is in the table only.
Cost next door · one source per column
Questions about the cost of living in Derwood
Is Derwood expensive to live in?
Measured against what households in the area earn, Derwood costs more than 76% of U.S. towns: a C− for cost of living. The typical home costs 5.7 years of the median household income of the Washington-Arlington-Alexandria, DC-VA-MD-WV metro area ($127K).
How much does a house cost in Derwood?
About $622K, Zillow’s typical value for September 2026, down 0.0% in a year. The Maryland typical home is $425K.
What salary do you need to live in Derwood?
To buy the typical home with 20% down at 6.3%, about $159,000 a year, keeping the payment (about $3,710 a month with tax and insurance) at 28% of income. To rent a two-bedroom at 30% of income, about $108,000.
How much is rent in Derwood?
HUD puts a two-bedroom at about $2,700 a month with utilities, the going rate for someone moving in. Renters already here pay a median of $1,676 (Census 2020–24).
What are property taxes in Derwood?
The median bill is $6,322 a year, 0.88% of the median home value (Maryland: $4,093, 0.97%), from the Census 2020–24.
Are home prices in Derwood going up?
No: down 0.0% in the past year and 11.0% in five years, against 13.3% across Maryland (Zillow).
Neighbors talk housing
What Derwood buyers, sellers and renters are saying.
Home values: Zillow Home Value Index (ZHVI), Zillow Research, September 2026. Sales, days on market and supply: Redfin Data Center, May 2026. Income, ownership, taxes and rent: U.S. Census Bureau, American Community Survey. Fair Market Rents: U.S. Department of Housing and Urban Development. The calculator is an estimate, not a loan offer. Regional price levels: BEA; electricity: EIA. How TownRatings grades cost of living.