Frederick: The Data Profile (2026)

Frederick, Maryland, presents a distinct statistical profile for the 2026 post-remote work landscape. With a population of 85,803, it operates as a smaller city hub, balancing suburban accessibility with urban amenities. The key economic differentiator is income: the median household income stands at $96,084, which is 28.8% higher than the US median of $74,580. This income premium is supported by a highly educated workforce; 47.9% of residents hold a bachelor's degree or higher, significantly outpacing the national average of 33.1%.

The statistical target demographic is the "educated hybrid worker." This profile includes professionals earning above the national median who require proximity to major metro hubs (DC/Baltimore) but prioritize housing value and quality of life. They are likely to have a commute 1-3 days per week, making the 108.0% housing index a critical calculation against reduced transportation costs.

Cost of Living Analysis

While the overall Cost of Living (COL) index for Frederick is near the national average, the distribution of costs reveals specific budget pressures. The primary driver is housing, indexed at 108.0%, while transportation remains efficient at 98.4%. Crucially, electricity costs are a hidden burden, averaging 17.86 cents/kWh compared to the US average of 16.0 cents/kWh.

Table 1: Monthly Cost of Living Breakdown (2026 Estimates)

Disposable Income Analysis:
A single earner with the median income ($96,084 / $8,007 monthly gross) faces a tax burden of approximately 24.5%, leaving a net monthly income of roughly $6,045. After deducting the single-person budget of $3,593, the disposable income is approximately $2,452. This allows for significant savings or debt repayment, provided remote work offsets transportation variances.

Housing Market Deep Dive

The housing market in Frederick is defined by a "rent premium" relative to ownership. Renters face fair market rates that are aggressive compared to the national average, while the purchase market is only slightly elevated. For 2026, the data suggests a strong financial incentive to buy if the resident plans to stay for more than 18 months.

Table 2: Housing Market Data (Buying vs Renting Analysis)

Analysis: Buy vs. Rent
The rental market is the primary stressor, sitting 16.3% to 18.3% above national norms. Conversely, the median home price of $455,000 is only 12.1% higher than the US average. With mortgage rates stabilizing around 6.5% in 2026, the monthly mortgage payment on a median home (20% down) is roughly $2,300, which is actually lower than the market rent for a 3-bedroom unit ($2,544). Therefore, buying is the mathematically superior option for stability and equity building.

Economic & Job Market Outlook

Frederick's economy is resilient, anchored by the "Eds and Meds" sector—education and healthcare—plus a growing biotech corridor. The local unemployment rate is 4.2%, essentially mirroring the national average of 4.0%.

RTO & Commute Impact:
Post-2024 Return-to-Office (RTO) mandates have solidified a hybrid model. Frederick is a primary beneficiary of this shift. It is located approximately 50 miles from Washington D.C. A pure commute is brutal (90+ minutes), but a 2-day/week schedule is manageable.

• Key Insight: The 28.8% income premium over the US average is largely preserved by hybrid workers who only incur commuting costs 8 days a month rather than 20.

Quality of Life Audit

Frederick offers a "Good" health score of 81.5/100, though lifestyle risks are present. The city is a statistical outlier in smoking rates, which are remarkably low at 9.9% (vs. 14.0% US). However, the obesity rate is elevated at 36.4% compared to the US average of 31.9%.

Table 3: Quality of Life Metrics

Safety Analysis:
Frederick sits in a middle ground regarding safety.

• Violent Crime: 454 incidents per 100k people (US Avg: 380). This is statistically AVERAGE.
• Property Crime: 1,988 incidents per 100k people (US Avg: 2,000). This is slightly better than the national average, rated AVERAGE.

Air Quality & Weather:
The Air Quality Index (AQI) average of 45 is excellent, well below the "Moderate" threshold. PM2.5 levels are 7.5 µg/m³, significantly safer than the US average of 9.0 µg/m³. Current weather reflects the region's volatility, with a temperature of 43.0°F and active rain, but the climate allows for four distinct seasons.

The Verdict

Pros:

• Income Power: Median income of $96,084 provides strong purchasing power against a near-average COL.
• Housing Value: Buying a home is financially accretive compared to renting, with a 12.1% premium on homes vs. a 16.3%+ premium on rent.
• Air Quality: AQI of 45 and low PM2.5 make it a healthy environment for respiratory conditions.

Cons:

• Rental Trap: Renters pay a significant premium ($1,803 for 1BR) that erodes the income advantage.
• Health Risks: High obesity rate (36.4%) suggests a sedentary local culture or high-calorie food environment.
• Crime Nuance: Violent crime is 19% higher than the national average, requiring neighborhood-specific due diligence.

Recommendation:
Frederick is a Strong Buy for 2026, specifically for hybrid workers who can leverage the high median income while commuting only part-time. It is Not Recommended for pure remote workers who rely on renting, as the rental premium negates the income advantage.

FAQs

1. What salary is needed to live comfortably in Frederick?
For a single person, a gross salary of $75,000 is the baseline for comfort (saving 15%). For a family, $130,000 is recommended to maintain the median lifestyle without financial strain.

2. How does the value proposition compare to nearby cities?
Frederick offers 15-20% better housing value than Gaithersburg or Rockville, MD. While those cities have slightly higher incomes, the housing cost gap is wider, making Frederick the better ROI for homeowners.

3. Are the safety statistics concerning?
The violent crime rate of 454/100k requires vigilance but is not a deterrent for most suburban families. It is comparable to other mid-sized mid-Atlantic cities. Property crime is statistically average.

4. What is the best timing for a move?
The data suggests moving in Q1 (Jan-Mar). While weather is poor (avg 43°F), the rental market sees less competition in winter, potentially lowering the $1,803 1BR average. Buying in Q1 allows you to beat the spring rush.