Trying to decide whether a DC rowhouse or a condo will deliver better rental returns? You are not alone. Many investors compare lower entry costs for condos with the higher gross rents that larger rowhouses can command. In this guide, you will see how each option performs on rent, costs, rules, and long-term potential so you can choose with confidence. Let’s dive in.
DC rental snapshot
Rents in Washington, DC sit well above the U.S. average, with the citywide median hovering in the low to mid $2,000s in 2025, according to Zumper’s DC rent research. New supply has increased competition in several submarkets, and the city has seen rising inventory in 2024 and 2025, as noted by the DC Office of the CFO.
Neighborhoods behave differently. Price-to-rent ratios in Capitol Hill, Navy Yard, Petworth, and Georgetown can vary a lot, so local comps matter more than citywide averages. For context on micro-market differences, see these DC neighborhood insights.
Rowhouses vs. condos: Key differences
Purchase price and appreciation
Across the region, the median condo price is around $399,000 while the median single-family price is roughly $840,000. That gap shapes down payments, loan sizes, and potential buyers at resale, according to the Washington Post’s coverage of condo vs. home tradeoffs. Rowhouses often benefit from land scarcity in prime neighborhoods, while condo values can depend on building health and broader condo cycles.
Rental income potential
A typical 1-bedroom condo often rents in the high $1,800s to mid $2,000s depending on neighborhood, while 2 to 3-bedroom rowhouses generally achieve higher absolute rents. In the same area, a rowhouse can produce 25 to 75 percent more monthly rent than a small condo because of size and renter profiles. Always price from current neighborhood comps.
Operating costs and ongoing expenses
Condo owners pay a monthly condo or HOA fee, which can be significant. DC’s median monthly HOA fee has been cited near $505, a meaningful drag on cash flow, based on Census-based reporting summarized by Axios. Rowhouse owners avoid that fixed fee but take on full exterior and systems maintenance. Property taxes follow assessed value, with the 2025 residential rate set at $0.85 per $100 of assessed value, per the DC Council code.
Financing and resale
Lenders often underwrite condos more strictly. Buildings may need to meet reserve and insurance standards and avoid litigation to qualify for common loan programs, as discussed by the Washington Post. Rowhouses usually face more straightforward underwriting but require larger absolute budgets.
Rules that affect returns
DC’s rent stabilization law covers many units in buildings with five or more units built before 1976. This can limit annual rent increases and shape operating plans, as explained by the D.C. Policy Center. The city also increased the notice period for rent increases to 60 days and capped certain fees under D.C. Law 25-65. Transparency has improved with the RentRegistry, which launched in 2025, per Axios’ local reporting. Finally, condo bylaws may cap the share of units that can be rented, which can limit long-term leasing strategies.
Returns, by the numbers
Below is a simple, illustrative comparison using rounded 2025 figures. Always verify neighborhood-specific rents, fees, and current loan terms before you invest.
Condo example
- Purchase price: $399,000
- Market rent: $2,200 per month
- HOA fee: $500 per month
- Vacancy reserve: 7 percent of rent
- Management: 10 percent of collected rent
- Insurance, taxes, maintenance reserve: $4,000 per year example
Estimate:
- Gross rent: $2,200 × 12 = $26,400
- Less vacancy: $1,848, effective rent about $24,552
- Less management: $2,455
- Less HOA: $6,000
- Less other reserves: $4,000
- Estimated NOI: about $11,000, an unlevered yield near 2.8 percent on $399,000
Rowhouse example
- Purchase price: $840,000
- Market rent: $3,500 per month
- HOA fee: $0, owner carries exterior and systems
- Vacancy reserve: 7 percent
- Management: 10 percent
- Higher maintenance and tax reserve example: $9,000 per year
Estimate:
- Gross rent: $3,500 × 12 = $42,000
- Less vacancy: $2,940, effective rent about $39,060
- Less management: $3,906
- Less other reserves: $9,000
- Estimated NOI: about $26,154, an unlevered yield near 3.1 percent on $840,000
What it means:
- Condos often deliver lower unlevered yields because HOA fees compress cash flow.
- Rowhouses require more capital but can produce higher absolute NOI and may have stronger appreciation drivers.
- Leverage changes the math. With higher rates in 2024 and 2025, debt costs can erase thin margins, so get current quotes before committing.
Due diligence checklist
- Verify rent control status and confirm compliance with the 60-day rent increase notice rule. Use DC’s RentRegistry and follow current requirements.
- For condos, review bylaws, budget, reserve study, meeting minutes, litigation, insurance, and any rental caps. Confirm building eligibility with your lender.
- For rowhouses, get a thorough inspection of roof, foundation, plumbing, electrical, and HVAC. Budget for exterior and systems over a 5 to 10 year horizon.
- Model all recurring costs. Include taxes, insurance, utilities, maintenance, capital reserves, management, and expected vacancy and turnover.
- Stress test your model. Sensitize for a higher HOA fee, a special assessment, a longer vacancy, and slower rent growth.
- Watch policy and market risks. The DC Attorney General’s actions around pricing practices, including the RealPage settlement reported by Reuters, show how legal changes can affect revenue management.
Which is right for you?
Choose a condo if you value lower entry price, simpler day-to-day maintenance, and a central location where small units stay liquid. Choose a rowhouse if you can support the higher purchase price, want higher absolute rent and NOI, and prefer direct control over maintenance and upgrades.
If you want a clear, numbers-first plan, we can help you price neighborhood rents, vet condo associations, and model returns under multiple rate scenarios. For discreet, data-driven guidance and access to on and off-market options, connect with The AiR Group.
FAQs
What are typical DC condo and rowhouse prices in 2025?
- Recent regional medians show condos around $399,000 and single-family homes near $840,000, though prices vary widely by neighborhood and condition.
How much do HOA fees impact condo cash flow?
- A $500 monthly fee reduces annual cash flow by $6,000, which can turn a thin-margin condo from break-even to negative after other costs.
Are DC rentals subject to rent control?
- Many units in buildings with five or more units built before 1976 fall under rent stabilization, which limits annual increases and requires added compliance steps.
Which rents faster in DC, a condo or a rowhouse?
- It depends on the neighborhood and price point. Small condos can move quickly near transit hubs, while well-priced rowhouses attract renters seeking more space.
What costs should I include in a rental pro forma?
- Include market rent, vacancy, management, taxes, insurance, maintenance and capital reserves, HOA if applicable, and realistic financing terms.
