F
31%
Overall NAT. AVG.
9%
Goods & Services NAT. AVG.
88%
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 Germantown Maryland National
Cost of living131119100
Goods & Services109106100
Groceries108106100
Health care9797100
Housing188150100
Transportation9598100
Utilities110111100

An Overview of Cost of Living in Germantown, MD

Getting a feel for the cost of living in Germantown is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Germantown is 131, which is 31% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

If you're in pursuit of an economical living environment, Germantown may not fit the bill, as it ranks among the most expensive places to reside in the United States. Just a minority of regions exhibit a cost of living that is more than 20% higher than the national average, and, unfortunately, Germantown falls within this bracket.

Housing costs are a very significant part of the Germantown 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 88% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

Is Germantown Affordable?

Is Germantown affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Germantown, the median home price is 89.2% higher than the national average and monthly rent prices are 85.1% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Germantown boasting a median household income of $98,829, 78.6% higher than the national average.

What Factors can Influence the Cost of Living in Germantown?

Housing: When everyone's vying for homes in popular areas, it drives up property prices and rents, making the overall cost of living surge. On the flip side, in less sought-after locales, where housing demand is low, prices tend to dip, resulting in a more economical cost of living. In Germantown, the housing index comes in at 88% higher than the national average.

Groceries: Grocery costs have continued to increase significantly over the last 2-3 years. In some markets the cost of food has gone up by more than 20% in that period. While other markets have managed to see only a moderate uptick. These food costs can have a major impact on the cost of living in any area. In Germantown, the groceries index is 8.3% higher than the national average.

Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday goods and services like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in Germantown starts at 6% and the income tax rates start at 2%.

Where is the Data From?

The Germantown cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors 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 Germantown is 10% higher than the Maryland average
  • The cost of living in Germantown is 31% higher than the national average
  • Germantown housing is 88% 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 Germantown

See all the best places to live around Germantown

Compare Germantown, MD Cost of Living

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      Salary Calculator

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      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$118,888$9,907$2,774$3,567
      Renters$68,046$5,671$1,588$2,042
      The affordability of the housing market in Germantown, 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 Germantown homeowners, the median income is $118,888. This indicates that a monthly maximum of $2,774 should be spent by homeowners on all housing related costs. Renters have a median income of $68,046. This indicates that renters would have a maximum of $1,588 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 Germantown 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 Germantown 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 Germantown 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 Germantown National avg. Difference
      Home Price $349,400.00$184,700.0089.2%
      Avg. Mortgage Payment $4,819.29$2,346.69105.4%
      Apartment Rent $1,757.00$949.0085.1%

      Transportation

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

      Utilities

      Item Germantown 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.
      Leisure World, MD9,31411717.0%
      Ballenger Creek, MD21,48412222.2%
      Montgomery Village, MD34,41312525.2%
      Jefferson, MD2,57712726.8%
      University Center, VA3,87812726.8%
      Germantown, MD89,52913130.8%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Peterborough, ON89,500n/a 
      Fall River, MA89,61811313.1%
      Miami Beach, FL89,43913736.7%
      Mount Pleasant, SC89,41014039.7%
      Town 'n' Country, FL89,7911021.7%
      Germantown, MD89,52913130.8%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.