F
100%
Overall NAT. AVG.
9%
Goods & Services NAT. AVG.
317%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Bethesda Maryland National
Cost of living200119100
Goods & Services109106100
Groceries108106100
Health care9797100
Housing417150100
Transportation9598100
Utilities110111100

An Overview of Cost of Living in Bethesda, MD

Understanding the cost of living in Bethesda can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Bethesda cost of living index is 200, which is 100% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

If you value affordability in your search for a new place to live, Bethesda may not be the most suitable option, as it stands out as one of the priciest areas in the entire United States. Only a small fraction of regions have a cost of living that is more than 20% higher than the national average, and regrettably, Bethesda falls into this category, which may not align with your desire for an affordable place to call home.

Housing costs are a very significant part of the Bethesda cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 317.1% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

Is Bethesda Affordable?

Wondering if Bethesda is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Bethesda, for example, the median home price is 402.2% higher than what folks pay nationally, and monthly rent is 118.7% higher than the usual rates. Plus, income levels matter too, with Bethesda boasting a median household income of $172,873, which is 212.5% higher than the national average.

What Factors can Influence the Cost of Living in Bethesda?

Groceries: Over the past 2-3 years, grocery expenses have experienced substantial upward trends. In certain markets, food prices have surged by over 20% during this period, while others have witnessed more modest increases. These fluctuations in food costs can wield significant influence over the overall cost of living in a given region. In Bethesda, the groceries index is 8.3% higher than the national average.

Subsidies: Some areas might offer government subsidies or assistance programs that help lower cost of living for residents. These programs can include anything from Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and crop subsidies. Areas that offer less subsidies, could see an increase in their cost of living.

Transportation: In situations where public transportation is limited or nonexistent, local residents may be required to own and maintain their own vehicles, contributing to an elevated cost of living. Monthly expenditures may encompass fuel costs, insurance premiums, routine vehicle upkeep and possibly lease or financing payments. In Bethesda, the transportation index is 4.7% lower than the national average.

Where is the Data From?

The Bethesda cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Bethesda is 68% higher than the Maryland average
  • The cost of living in Bethesda is 100% higher than the national average
  • Bethesda housing is 317% higher than the national average
  • Maryland general sales tax is 18% higher than the national average
  • Maryland state income tax is 23% lower than the national average

Most Affordable Places to Live in and Around Bethesda

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Compare Bethesda, MD Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$226,500$18,875$5,285$6,796
      Renters$95,459$7,955$2,227$2,864
      The affordability of the housing market in Bethesda, MD as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Bethesda homeowners, the median income is $226,500. This indicates that a monthly maximum of $5,285 should be spent by homeowners on all housing related costs. Renters have a median income of $95,459. This indicates that renters would have a maximum of $2,227 for their rent related monthly costs.

      Maryland Sales Tax

      State General Sales Tax With Max Surtax
      Maryland 6% 6%

      Maryland Income Tax

      State Income Tax (Low) Income Tax (High)
      Maryland 2% 5.75%

      Goods & Services

      Item Bethesda National avg. Difference
      Haircut $26.11$24.267.6%
      Beauty Salon $70.08$45.5653.8%
      Toothpaste $3.81$3.702.8%
      Shampoo $1.51$1.2817.9%
      Movie $15.69$12.1329.3%
      Bowling $24.83$18.0038.0%

      Groceries

      Item Bethesda National avg. Difference
      Ground Beef $6.24$5.846.9%
      Fried Chicken $1.40$1.5711.0%
      Milk $4.78$4.672.2%
      Potatoes $5.49$4.9311.3%
      Pizza $12.56$12.093.9%
      Beer $11.10$10.416.6%

      Health Care

      Item Bethesda National avg. Difference
      Optometrist $92.00$125.6826.8%
      Doctor $135.03$135.780.5%
      Dentist $117.67$113.293.9%
      Ibuprofen $11.52$10.658.1%
      Lipitor $403.79$468.6013.8%

      Housing

      Item Bethesda National avg. Difference
      Home Price $927,600.00$184,700.00402.2%
      Avg. Mortgage Payment $4,819.29$2,346.69105.4%
      Apartment Rent $2,075.00$949.00118.7%

      Transportation

      Item Bethesda National avg. Difference
      Gasoline $3.25$3.466.0%
      Tire Balancing $59.00$59.921.5%

      Utilities

      Item Bethesda National avg. Difference
      All Electricity $222.47$193.9914.7%
      Phone $197.37$192.252.7%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Rose Hill CDP (Lee County), VA708927.8%
      Wakefield town, VA810954.6%
      Belle Haven town, VA5621022.0%
      Cottage City, MD1,1501088.4%
      Silver Hill, MD5,15511414.0%
      Bethesda, MD65,09220099.5%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Bayonne, NJ65,11212626.4%
      Laguna Niguel, CA65,04819897.7%
      Blaine, MN65,0481098.7%
      Jupiter, FL65,13912828.0%
      Harlingen, TX65,0287723.3%
      Bethesda, MD65,09220099.5%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.