F
71%
Overall NAT. AVG.
9%
Goods & Services NAT. AVG.
222%
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 North Potomac Maryland National
Cost of living171119100
Goods & Services109106100
Groceries108106100
Health care9797100
Housing322150100
Transportation9598100
Utilities110111100

An Overview of Cost of Living in North Potomac, MD

Knowing the cost of living in North Potomac allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in North Potomac stands at 171, marking it 71% higher than the national average.

If you prioritize affordability when seeking a new place to live, North Potomac may not be your ideal choice, as it ranks among the most expensive locations in the entire United States. A very small amount of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, North Potomac falls into this category, which may not align with your preferences for a budget-friendly living environment.

When it comes to the cost of living in North Potomac, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 222.4% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

Is North Potomac Affordable?

Is North Potomac an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in North Potomac, the median home price is 263.1% higher than what most folks pay across the country, and monthly rent prices are 127.6% higher than the usual rates. Income levels in North Potomac come in at $166,383, which is 200.8% higher than the national average.

What Factors can Influence the Cost of Living in North Potomac?

Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In North Potomac, the general sales tax rate starts at 6%, and income tax rates begin at 2%.

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 North Potomac, the groceries index is 8.3% higher than the national average.

Utilities: Similar to the prices of any goods or services, utility expenses can fluctuate widely, contingent on variables such as climate, available energy sources, geographical location and state regulations. Costs associated with electricity, water, heating, and waste disposal can differ in magnitude, depending on the specific city or state. In North Potomac, the utilities index registers at 10.2% higher than the national average.

Where is the Data From?

The cost of living data in North Potomac displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.

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Cost Of Living Quick Facts

  • The cost of living in North Potomac is 44% higher than the Maryland average
  • The cost of living in North Potomac is 71% higher than the national average
  • North Potomac housing is 222% 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 North Potomac

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Compare North Potomac, 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$186,719$15,560$4,356$5,602
      Renters$101,250$8,438$2,362$3,038
      A good way to judge both the affordability of the housing and the cost of living in North Potomac is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. North Potomac has a median income of about $186,719 for people who own homes. Based on that number, a maximum of $4,356 should be spent on expenses related to housing. Renters have a slightly different median income, which is $101,250. Based on this average, renters should spend no more than $2,362 on all rental costs if they want to maintain a non-impoverished standard of living.

      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 North Potomac 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 North Potomac 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 North Potomac 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 North Potomac National avg. Difference
      Home Price $670,600.00$184,700.00263.1%
      Avg. Mortgage Payment $4,819.29$2,346.69105.4%
      Apartment Rent $2,160.00$949.00127.6%

      Transportation

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

      Utilities

      Item North Potomac 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%
      Langley Park, MD19,39112121.5%
      Chillum, MD34,23012828.5%
      Adelphi, MD16,36412928.6%
      Montgomery Village, MD34,41312525.2%
      North Potomac, MD24,14617171.1%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Fort Dodge, IA24,1688712.9%
      Somerset, NJ24,11912828.2%
      Peekskill, NY24,11112625.9%
      Ridgeland, MS24,194973.3%
      Brandon, MS24,088973.2%
      North Potomac, MD24,14617171.1%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.