District of Columbia Mortgage Calculator

Mortgage Calculator in District of Columbia

The median home price in District of Columbia is $650,000, which is 55% above the national average of $420,000. District of Columbia's effective property tax rate of 0.56% is 0.54 percentage points lower than the national average of 1.1%.

Metric	District of Columbia (DC)	National Avg	vs National Average
Median Home Price	$650,000	$420,000	+55%
Property Tax Rate	0.56%	1.1%	-0.54%
Home Insurance (Annual)	$1,800	$2,300	-22%
State Sales Tax	6%	5%	+1.0%
FHA Loan Limit	$1,149,825	$472,030	Higher
Conforming Loan Limit	$1,149,825	$766,550	Higher

District of Columbia offers a homestead exemption of $87,500, which reduces the taxable value of your primary residence. The state uses an assessment ratio of 100% to determine the assessed value for property tax purposes.

Homeownership in District of Columbia

Washington DC has one of the most expensive and supply-constrained housing markets in the country, with a median price around $650,000 and a significant premium for single-family homes versus condos. The DC market is underpinned by the federal government employment base, which provides unusual stability relative to private-sector cities. The Homestead Deduction reduces assessed value by $87,500 for owner-occupants, softening the property tax bite.

Tips for District of Columbia Homebuyers and Homeowners

• DC's Homestead Deduction subtracts $87,500 from your property's assessed value before applying the 0.56% tax rate -- on a $650,000 home, this saves roughly $490 per year.
• The Senior Property Tax Freeze program locks in the assessed value for homeowners 65+ with income below $140,850, a major benefit as DC values continue to rise.
• DC's Recordation Tax is 1.1% on the first $400,000 and 1.45% above that for purchases over $400,000 -- budget $6,000-$9,000 in transfer taxes on a typical purchase.
• Condo associations are prevalent in DC -- HOA fees of $400-$800 per month are common in newer buildings and must be factored into your total housing cost calculation.

District of Columbia Programs and Assistance

• DC Open Doors Program -- provides down payment assistance loans of up to 3.5% of the purchase price at 0% interest, available to buyers with income up to $166,950 for a family of four.
• Home Purchase Assistance Program (HPAP) -- DC's primary first-time buyer program offering up to $202,000 in interest-free loans and closing cost assistance for lower-income buyers.
• Employer-Assisted Housing Program (EAHP) -- DC government employees can receive matching funds up to $26,500 for down payment and closing costs.

Did you know? DC has the highest average household income and one of the most educated workforces of any major city in the country -- but homeownership rates are among the lowest, around 40%, due to high prices and a large transient government workforce.