As we enter November, the most common question I receive is, "Have home prices dropped, or are rents going up?" Let's take a closer look at the Frederick market based on October's numbers.

First, it's important to note that the official statistics for home sales in October have not yet been released. Therefore, I will discuss home prices based on the most recently published month, while using mid-October data for rents.

Starting with rents, according to PadMapper, the median rent in Frederick as of October 18 is $1,600 for a one-bedroom and $1,910 for a two-bedroom.

The three-bedroom rent is $2,550, and the four-bedroom is $3,000. This remains a significant burden for families looking for larger homes.

Notably, the one-bedroom rent has decreased by 3% compared to the previous month.

Foreclosure.com reported the median rent for the entire city as $1,870 as of October 14. On average, it is $1,960.

It's encouraging that these two sources do not show significant discrepancies. For two-bedrooms, you can consider the actual market range to be between $1,870 and $1,910.

However, Trulia reported a much higher average of $2,411 for September. This difference arises from whether the data is based on asking prices or actual median values of available listings.

Therefore, I always advise those about to sign a rental agreement not to rely on just one site's numbers. It's essential to compare at least three or four similar properties in the same neighborhood.

In October, HUD's Fair Market Rent (FMR) for the 2027 fiscal year also took effect on October 1. For a two-bedroom in the 21705 zip code, the rate is $2,080.

If you are renting with a Section 8 voucher, please make sure to check this new guideline. The numbers vary by zip code.

Now, regarding home prices. According to Zillow's Home Value Index, the value for Frederick City was $469,711 based on data up to June 30.

This represents a 1.1% decrease compared to a year ago. While it's not a drastic drop, it certainly feels different from the years of continuous increases.

The Fox Sells Faster report, using Bright MLS data, recorded the median sale price over the last 12 months up to July at $453,000, which is also a 1.8% decline.

However, the same report indicated that the median time on the market for listings was 15 days. This suggests that while prices have slightly softened, good homes are still selling quickly.

When looking at the county as a whole, the picture changes slightly. A mortgage company reported the median sale price for Frederick County in July at $512,500, which is a 2.5% increase from $500,000 a year ago.

In the same month, there were 366 transactions, a 17.3% increase compared to the previous year. This indicates that the city and the county are experiencing slightly different trends.

The reason for the differing numbers across sources is due to variations in geographic scope and time periods. Whether it's city versus county, or one month versus twelve months, clarifying these factors can reduce confusion.

A key local issue to note in October is ADUs, or Accessory Dwelling Units. Maryland's 2025 state law requires municipalities to establish ordinances allowing ADUs on single-family lots by October 1, 2026.

Currently, county regulations allow only one ADU per lot. If it exceeds 1,000 square feet, special exception approval is required, and the homeowner must reside in either the main house or the ADU.

One additional parking space is also required, which can be substituted with street parking. The specifics of how these conditions will change under the new ordinance have yet to be confirmed.

If you are considering housing your parents or generating rental income, it is best to contact the county planning department directly for the most accurate information. You should obtain permit conditions before starting any construction.

Discussions about supply shortages continue. According to a WYPR report, the county needs 31,000 new homes by 2035, and Frederick City alone requires 14,000 homes.

This has led to discussions about building taller structures. While I don't believe that high-rise buildings are the only solution, I agree that without increasing supply, the burden of rents and home prices will persist.

In summary, Frederick is currently in a phase where home prices are stabilizing, and rents are easing slightly for smaller units. It is a period of adjustment, neither overheating nor stagnation.

This raises the question of whether to buy now or continue renting. Personally, I would look for homes that have been on the market longer to explore potential price negotiation opportunities.

If you are renting, you might consider negotiating the increase based on the decline in one-bedroom rents at the time of renewal. Bringing supporting data can make discussions much smoother.

October sales statistics are expected to be released through Bright MLS and the local realtor association. Once the numbers are out, I will provide an update on whether this trend continues.