Is DC proper a buyer's market or seller's market in 2026?

Washington DC proper is a buyer's market as of April 2026 with 8.6 months of supply. Only 11.8% of homes sell above list price. This is unusual for DC and unlikely to last. Buyers have real leverage on price and concessions. Meanwhile, Fairfax County (1.9 months supply) and Montgomery County (2.4 months supply) remain strong seller's markets.

How much does childcare cost in the DC metro?

Full-time infant daycare in the DC metro runs $2,200 to $3,100 per month as of 2026. Preschool for 3-5 year olds runs $1,500 to $2,300. After-school care runs $600 to $1,200. Costs are relatively consistent across Virginia, Maryland, and DC. On-base CDC options significantly reduce costs for military families but waitlists run 6 to 18 months at major installations.

What is the total monthly cost of living for a family of 4 in the DC metro?

For a household earning $150K to $200K with two kids in childcare, total monthly living costs (housing, taxes, childcare, commute) range from roughly $7,050 in Prince William or Prince George's Counties to $9,450 in Bethesda. The biggest variable is housing, followed by childcare. Picking the right jurisdiction for your income level can save $25,000 or more per year.

Cost of Living in the DC Metro 2026: Virginia vs Maryland vs DC, Honestly

Q: Is Virginia or Maryland cheaper to live in near DC?

For comparable home sizes and commutes, Northern Virginia tends to be cheaper on a total cost basis once you factor in Virginia's lower combined income tax. Virginia's state income tax tops out at 5.75%. Maryland's state tax plus county tax (Montgomery and Prince George's both around 3.2%) pushes effective rates near 8%. For a household earning $175K, Virginia saves roughly $4,000 per year compared to Maryland.

Q: How can I compare lower-cost DC suburbs and school assignments?

Reston and Herndon townhomes have median prices around $550-650K and access to the Silver Line corridor. Rockville and Gaithersburg have median prices around $560-625K. Prince William County and Prince George's County can provide more space with longer commutes. Verify school assignments for each address with the relevant district.

Q: Does Virginia tax military retirement pay?

The guide cites different military-retirement treatment in Virginia, Maryland, and DC. Tax rules, eligibility, amounts, and effective dates can change; verify current household-specific treatment through official sources and a qualified professional before making a decision.

You are looking at two houses that cost the same.

One is in Rockville. One is in Vienna. Same square footage, same lot size, same year built. The listing agent for each will tell you theirs is a better deal. And on paper, they are charging you the exact same price.

They are not the same deal. The monthly cost of living in one of those houses will be $700 to $1,400 more than the other once you factor in state income tax, county income tax, property tax, and the cost of the commute you will actually drive every day.

Nobody does this math for you. Here it is.

What this guide does

Gives you the real 2026 monthly cost of living for each DC metro jurisdiction, not the headline median price.
Pulls live county-level data from Redfin and current mortgage rates from the Federal Reserve so the numbers are the numbers today.
Tells you which jurisdiction saves you money at which income level, which family size, and which career stage.
Compares cited tax rules and directs readers to verify current, household-specific treatment with qualified professionals.

The one number that matters most: housing, by county

Washington DC Market Snapshot

Updated Sep 14

$625K

Median Price

Avg Days on Market

Estimated Payment at 7.22%

$3,401/mo

20% down on a $625K home

Data from verified transaction records and public sources

As of the week ending April 6, 2026 (source: Redfin county data):

County	Median sale price	YoY change	Months supply	Sold above list
Fairfax County, VA	$723,000	-3.6%	1.9	42.0%
Arlington County, VA	$437,500	+1.9%	3.4	16.9%
Washington DC	$900,000	-27.7%	8.6	11.8%
Montgomery County, MD	$515,500	+2.0%	2.4	39.3%
Prince George's County, MD	$476,500	-0.7%	3.2	33.4%

Two things jump out of that table if you know what to look for.

DC proper is a buyer's market. 8.6 months of supply is unusual for DC. It will not last, but right now, buyers have leverage in the District that they do not have anywhere else in this metro.

Fairfax is the tightest market in the DMV right now, not Bethesda. 42% of homes sold above list price. 1.9 months of supply. That is hotter than Montgomery County, hotter than Arlington. If you are looking in Fairfax, expect multiple offers.

Mortgage rates this week

The 30-year fixed is 6.32% per Mortgage News Daily as of April 17, 2026. The 15-year fixed is 5.96%. These are the rates your DMV lender is actually quoting, not the bank headline numbers.

Use the calculator above to run your specific home price and down payment.

Taxes: the number the median home price hides

Housing is the biggest line item. Taxes are the second. And the three jurisdictions could not be more different.

Virginia

State income tax: 5.75% on taxable income above $17,000. Flat and predictable.
Military retirement pay: Not taxed. Virginia exempts all military retirement income starting in tax year 2022 and continuing indefinitely.
Property tax (effective): Roughly 0.84% in Arlington, 1.0% in Fairfax County, 0.97% in Prince William.
Sales tax: 5.3% general, 6% in Northern Virginia region (includes regional 0.7%).

Maryland

State income tax: 4.75% on most income, plus a county income tax of approximately 3.2% in Montgomery and Prince George's Counties. Combined effective rate around 7.95% for many filers.
Military retirement pay: Partially taxed. First $12,500 exempt under age 55, first $20,000 exempt age 55+. Higher exemptions for certain combat-related disability pay.
Property tax (effective): Approximately 0.94% Montgomery County, 1.0% Prince George's County.
Sales tax: 6%.

Washington DC

Income tax: Progressive, topping out at 10.75% for income above $1,000,000. For most households, the bracket is 6.5% to 8.5%.
Military retirement pay: Not taxed by DC.
Property tax (effective): Approximately 0.56%. This is low relative to the national average, but home prices are high, so the dollar amount is not small.
Sales tax: 6%.

What this works out to per year

A military officer household earning $175,000 combined (say, an O-5 active duty plus a civilian spouse):

In Virginia: State income tax around $9,600. Military pension (if applicable) not taxed.
In Maryland: State + county income tax around $13,700. Military pension partially taxed.
In DC: Income tax around $11,600. Pension not taxed.

Virginia is the cheapest for this income profile by about $4,000 per year versus Maryland. Over a three-year tour, that adds up to real money.

For an illustrative $80,000 pension-income case, state treatment can differ. Verify current household-specific tax rules with official sources and a qualified professional.

Childcare: the quiet budget-destroyer

Childcare in the DC metro is among the most expensive in the country. It is also remarkably consistent across the three jurisdictions, which makes it a cost you cannot really optimize by picking a different county.

Rough 2026 monthly rates:

Full-time infant daycare: $2,200 to $3,100. Arlington, Bethesda, McLean push toward the high end. Prince William, Prince George's, Frederick push toward the low end.
Preschool (3-5): $1,500 to $2,300.
After-school care (school-age): $600 to $1,200.

If your family qualifies for on-base CDC access, that cuts the bill substantially but availability is tight. Waitlists run 6 to 18 months at every major DMV installation. Apply the day you receive orders.

Commute: the cost you feel every day

Commute cost is not just time. It is tolls, car depreciation, gas, and parking. Over a three-year tour, these add up.

Virginia toll roads (I-66 inside the Beltway, I-495 express lanes, Route 267 Dulles Toll Road) charge dynamic tolls that hit $15 to $40 one-way during peak hours. A Virginia commuter driving to DC or Tysons every day can spend $200 to $400 per month in tolls alone.

Maryland tolls are lighter. The Intercounty Connector (MD-200) is the main toll route. Most Maryland commuter corridors are free.

Metro from Arlington or Bethesda to downtown DC ran about $5 to $8 per round trip in the cited period. Compare current fares, frequency, travel time, parking, and housing cost for the exact addresses on your list.

Parking in DC runs $200 to $400 per month. Most suburban workplaces have free parking.

Total monthly cost by location (family of 4, two kids in childcare)

Rough estimates for a household earning $150K to $200K with one commute to DC and one commute to a suburban workplace:

Location	Housing (P+I+tax+ins)	Income taxes	Childcare	Commute	Total
Arlington, VA (townhome)	$3,900	$1,000	$3,800	$350	~$9,050
Reston, VA (townhome)	$3,200	$800	$3,600	$450	~$8,050
Prince William, VA (single-family)	$2,700	$750	$3,200	$400	~$7,050
Bethesda, MD (condo)	$4,100	$1,300	$3,800	$250	~$9,450
Rockville, MD (townhome)	$3,300	$1,100	$3,600	$350	~$8,350
Prince George's County, MD (single-family)	$2,600	$900	$3,200	$350	~$7,050
Washington DC (condo)	$3,700	$1,400	$3,900	$300	~$9,300

The difference between the most and least expensive options in this table is about $2,400 per month, or $29,000 per year.

Where the real value is right now

Prince William County, Virginia. Lower housing costs and Virginia tax treatment, with a 45 to 60 minute commute to DC from many areas. Verify school assignments for each address with PWCS.

Prince George's County, Maryland. Competitive pricing plus MARC and Metro access. Application programs use separate eligibility rules. Compare commute, housing cost, and address assignment separately. Explore PG County agent profiles before you fly out.

Reston and Herndon, Virginia. Silver Line Metro access and more house per dollar than Arlington or Bethesda. Median around $550-650K for townhomes and small single-family homes. Verify school assignments with FCPS.

Washington DC right now. Because of the 8.6 months of supply, DC is genuinely more affordable to buy in today than it has been in several years. If you are stationed at JBAB, working downtown, or flexible on commute, it deserves a real look. The math has shifted since 2023.

Where the value is not

Bethesda and Chevy Chase. These are higher-priced close-in markets. Compare the walkable downtown access, property costs, and address-specific MCPS assignments separately. Deep comparison: Bethesda vs Chevy Chase: where to buy in 2026.

Arlington single-family homes. Still one of the most expensive price-per-square-foot markets in Virginia. Arlington makes sense if you need to live close to the Pentagon or Rosslyn. It does not make sense as a cost optimization.

Far-out Virginia if you work in Maryland, or vice versa. Crossing the river every day adds 30+ minutes each way and burns through your commute tolerance. Live on the same side of the Potomac as your job.

Get pre-approved with a DMV lender first

Before narrowing homes, compare DMV lender profiles, then ask about VA, FHA, and conventional eligibility, written timing, rates, fees, property requirements, and credentials.

A strong pre-approval in hand is the difference between making an offer that gets accepted and watching a house go to someone else with faster paperwork.

What to do this week

Lock your budget by jurisdiction. Use the table above to estimate your real monthly cost, not just the mortgage. Add childcare, taxes, and commute honestly.
Pick two target neighborhoods on one side of the Potomac. Not four. Not across the river. Two.
Get VA pre-approved this week with a DMV lender. This takes 48 to 72 hours with a responsive lender.
Interview 2 to 3 agents. Review available records by area, then ask about services, compensation, references, and credentials. Compare smover agent profiles by city.
Check the commute at the actual time your spouse or you will drive it. 7:40am from Stafford to the Pentagon is a different drive than 11am.

Frequently asked questions

Is Virginia or Maryland cheaper to live in near DC?

For comparable home sizes, Northern Virginia is generally cheaper on a total-cost basis thanks to Virginia's lower income tax. A household earning $175K saves roughly $4,000 per year in Virginia versus Maryland. Compare school assignments separately using the official district locator for each address.

How can I compare lower-cost DC suburbs and school assignments?

Reston and Herndon have Silver Line access and median prices around $550-650K. Rockville and Gaithersburg have lower prices than Bethesda. Prince William County and Prince George's County can offer more space with longer commutes. Verify school assignments address by address.

Does Virginia tax military retirement pay?

No. Virginia fully exempts military retirement pay. Maryland partially taxes it with exemptions up to $12,500 under 55 and $20,000 at 55+. DC does not tax military retirement.

Is DC a buyer's or seller's market in 2026?

DC proper is a buyer's market as of April 2026 (8.6 months supply). Fairfax and Montgomery Counties are seller's markets (1.9 and 2.4 months). Know which market you are entering before you write an offer.

How much is childcare in the DC metro?

Infant daycare runs $2,200 to $3,100 per month. Preschool $1,500 to $2,300. After-school care $600 to $1,200. Apply for on-base CDC the day you receive orders; waitlists are long.

Market data on this page updates weekly from Redfin county data, Federal Reserve Economic Data (FRED), and Mortgage News Daily. Last data refresh: April 6, 2026 (county metrics) and April 17, 2026 (mortgage rates). Reviewed quarterly; refreshed when county-level year-over-year shifts exceed 10% or mortgage rates move 50+ basis points.