F
38%
Overall NAT. AVG.
9%
Goods & Services NAT. AVG.
112%
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 Gaithersburg Maryland National
Cost of living138119100
Goods & Services109106100
Groceries108106100
Health care9797100
Housing212150100
Transportation9598100
Utilities110111100

An Overview of Cost of Living in Gaithersburg, MD

Are you thinking about relocating, but curious about the potential cost of living in Gaithersburg? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Gaithersburg stands at 138, making it 38% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

The cost of living in Gaithersburg is among the highest in the country, making it a very expensive place to live. Only a small fraction of regions boast a cost of living that is at least 20% higher than the national average, and regrettably, Gaithersburg falls into this category, which may not be suitable for those seeking an economically favorable living environment.

Housing costs make up a big chunk of the cost of living in Gaithersburg, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 112.2% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.

Is Gaithersburg Affordable?

Wondering if Gaithersburg 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 Gaithersburg, for example, the median home price is 123.9% higher than what folks pay nationally, and monthly rent is 84.8% higher than the usual rates. Plus, income levels matter too, with Gaithersburg boasting a median household income of $91,845, which is 66% higher than the national average.

What Factors can Influence the Cost of Living in Gaithersburg?

Urbanization: Urban areas with a wealth of amenities and employment opportunities tend to come with a higher price tag for living. Why? Well, more people want to be there, which drives up home prices and rents. On the flip side, less densely populated rural areas or places where there's not as much demand usually mean fewer attractions, things to do and slower job growth. That often results in a lower cost of living.

Housing: High demand for housing in desirable locations can drive up property prices and rental rates. This can be a primary contributor to a higher cost of living. While low demand for housing, especially in undesirable locations, can have the reverse effect and drive prices down, resulting in a lower cost of living. The housing index in Gaithersburg, is 112.2% higher than the national average.

Subsidies: Certain regions may provide government subsidies or assistance initiatives designed to alleviate the cost of living burden on their residents. These programs encompass a wide range of support mechanisms, such as 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 farming subsidies. Areas with fewer subsidy offerings might experience an elevation in their cost of living.

Where is the Data From?

The Gaithersburg 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. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Gaithersburg is 16% higher than the Maryland average
  • The cost of living in Gaithersburg is 38% higher than the national average
  • Gaithersburg housing is 112% 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 Gaithersburg

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Compare Gaithersburg, 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$126,731$10,561$2,957$3,802
      Renters$66,846$5,571$1,560$2,006
      The affordability of the housing market in Gaithersburg, 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 Gaithersburg homeowners, the median income is $126,731. This indicates that a monthly maximum of $2,957 should be spent by homeowners on all housing related costs. Renters have a median income of $66,846. This indicates that renters would have a maximum of $1,560 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 Gaithersburg 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 Gaithersburg 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 Gaithersburg 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 Gaithersburg National avg. Difference
      Home Price $413,500.00$184,700.00123.9%
      Avg. Mortgage Payment $4,819.29$2,346.69105.4%
      Apartment Rent $1,754.00$949.0084.8%

      Transportation

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

      Utilities

      Item Gaithersburg 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.
      Cottage City, MD1,1501088.4%
      Leisure World, MD9,31411717.0%
      Langley Park, MD19,39112121.5%
      Bladensburg, MD9,42812323.2%
      Edmonston, MD1,39912424.4%
      Gaithersburg, MD67,87813838.0%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Palatine, IL67,87511717.0%
      Redmond, WA67,95919291.8%
      Rogers, AR67,787991.5%
      Palo Alto, CA67,973335234.6%
      Muncie, IN67,7398415.9%
      Gaithersburg, MD67,87813838.0%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.