Annapolis Home Prices: $824K, Up 3.9% — 4 ZIPs Analyzed (2026)

$823,930. That’s the typical home value in Annapolis as of February 2026. Prices are up 3.9% from a year ago, and the climb hasn’t paused for a single month in the past year.

Quick answer: The average home price in Annapolis, MD is $823,930 as of February 2026, up 3.9% year over year according to Zillow.

Current Home Prices in Annapolis

The median home in Annapolis sits at $823,930. That’s roughly 2.5x the U.S. median. The cheapest ZIP comes in at $582,694. The most expensive crosses $1.48 million — a spread of more than $900,000 between the city’s least and most expensive neighborhoods.

The 3.9% annual gain puts Annapolis ahead of the national price trend. But the headline figure hides a wide gap between waterfront ZIPs and the rest of the city. One ZIP carries values that distort the average upward. Strip it out and Annapolis looks more like a $600K market than an $800K one.

For buyers, that means the median is misleading. The number you’ll actually pay depends almost entirely on which side of town you’re shopping. The price floor — $582K — is what you’d realistically need to clear for entry-level housing inside city limits. Anything below that requires looking outside Annapolis proper.

Sellers have steady tailwinds. Values rose in every single month over the past year, with no monthly declines in the trend data.

Annapolis Home Prices by Neighborhood

Four ZIP codes make up Annapolis. Three cluster in a relatively narrow band between $582K and $621K. The fourth — 21405 — sits in a different universe at nearly $1.49 million.

Most Expensive

• 21405 — $1,489,830. This ZIP covers a small waterfront pocket and pulls the city average up by itself. Values here run more than 80% above the citywide median.
• 21401 — $620,946. Downtown Annapolis and the surrounding inland neighborhoods. Rent averages $2,240, the highest of the rented ZIPs.
• 21403 — $602,249. Eastport and Bay Ridge sides of the bridge. Slightly cheaper than 21401 with rent at $2,009.

Most Affordable

• 21409 — $582,694. The cheapest ZIP in the city. Values run 29% below the citywide median.
• 21403 — $602,249. The second-cheapest, with rent data showing the lowest monthly rates among tracked ZIPs.
• 21401 — $620,946. Third-cheapest despite being the historic core. Three of four Annapolis ZIPs fall within $40K of each other.

Rent vs Buy in Annapolis

Rent data covers two of the four Annapolis ZIPs. The numbers point heavily toward renting if you’re crunching monthly cash flow.

*Estimated monthly principal and interest on an 80% loan-to-value 30-year mortgage at 7% rates, before taxes and insurance.

A typical mortgage payment in 21401 runs roughly $1,700 more than rent. In 21403 the gap is about $1,800. Add Maryland property taxes, homeowner’s insurance, and maintenance, and the buy-versus-rent gap widens further.

That math doesn’t kill the case for buying — equity accrual and price appreciation matter over a long hold. With 3.9% annual price growth, $620K of value adds roughly $24K per year. But on a one- to three-year horizon, renting wins on monthly cost.

The cheapest waterfront ZIP (21405) has no rent data tracked, so any rent-versus-buy math at that price tier is unavailable.

Population Growth and Migration

Annapolis isn’t growing. The city had 40,857 residents in 2020 and 40,689 in 2024 — a net loss of 168 people, or 0.4% over four years.

Population dipped each year through 2023 before ticking up slightly in 2024. The trajectory is essentially flat with a slight downward bias.

Compare that to the rest of Maryland:

Frederick is the standout — adding more than 11,000 residents in four years. Annapolis sits closer to Baltimore’s pattern of slow population loss than to the growing inland Maryland suburbs.

For housing demand, this means price growth is being driven by something other than incoming residents. Limited inventory, high-income buyers, and second-home demand from the Baltimore-DC corridor are doing the work.

Annapolis Housing Market Trends

The trend data tells a clean story: 12 straight months of gains. Not one month showed a decline.

Values climbed roughly $30,683 over 12 months. The pace was steadiest in the most recent quarter, with monthly gains of about $2,000 to $3,000.

The high end (max ZIP) added almost $100,000 in 12 months — from $1.39M to $1.49M. The low end barely moved, going from $577K to $582K. The expensive ZIP is doing most of the heavy lifting on the citywide average.

If you’re trying to time entry into the market, there’s no obvious dip in the past year to wait for. The chart goes up.

Is Annapolis a Good Place to Buy in 2026?

The data points to a seller’s market. Twelve months of price gains, no flat months, no inventory glut showing up in the price action. Sellers in 21401 and 21403 face limited downside risk in the near term.

For buyers, the math is harder. You’re paying $824K median, with roughly $3,800 to $3,900 in monthly mortgage costs at current rates — well above rent in the same neighborhoods. The 3.9% appreciation rate covers the gap on paper but only if you stay long enough.

The cheapest ZIP at $582K is the most defensible entry point. It hasn’t seen the price acceleration of the high-end ZIP. That makes it both less risky and less likely to deliver outsized returns.

If you need to live in Annapolis specifically — for work, schools, or proximity to the bay — the trend data says buying sooner rather than later. If you’re flexible on location, Frederick or Gaithersburg offer better growth profiles.

Annapolis Housing Market Outlook for 2026-2027

The 3-month trend shows monthly gains slowing slightly. From November to February, prices rose by about $6,500, compared to roughly $9,000 in the prior 3-month window.

If the current pace continues, the median should clear $830K by mid-2026 and approach $850K by year-end. The momentum is positive but decelerating — not an accelerating breakout.

The high-end ZIP (21405) is what to watch. It added nearly $100K in value over the past year. A pullback there would drag the citywide average down faster than the cheaper ZIPs could lift it.

For the next 3-6 months, expect continued single-digit appreciation. The data shows no reversal forming.

Similar Markets in MD

• Baltimore — much cheaper than Annapolis but losing population at a faster rate.
• Bethesda — comparable price tier with stronger DC commuter demand.
• Frederick — Maryland’s growth leader at +14.2%, often cheaper than Annapolis.
• Rockville — similar suburb price band with slow but steady population gains.
• Silver Spring — closer to DC, different commute profile, worth comparing on price-per-square-foot.

Frequently Asked Questions

What is the average home price in Annapolis?

The average home price in Annapolis, MD is $823,930 as of February 2026. That figure represents the Zillow Home Value Index across 4 ZIP codes within city limits.

Are home prices going up or down in Annapolis?

Prices are up 3.9% year over year. The median climbed from $793,247 in March 2025 to $823,930 in February 2026, with no monthly declines during that 12-month stretch.

Is it cheaper to rent or buy in Annapolis?

Renting is cheaper month to month. Average rent in 21401 is $2,240, while an estimated mortgage payment on the median $620,946 home there runs about $3,940 before taxes and insurance — a gap of roughly $1,700 per month.

What is the most affordable neighborhood in Annapolis?

ZIP 21409 is the cheapest, with a typical home value of $582,694. That’s 29% below the citywide median and about $907,000 less than the most expensive ZIP, 21405.

Methodology

Home values are based on the Zillow Home Value Index (ZHVI), a smoothed measure of typical home values in the 35th to 65th percentile range. Rent estimates use the Zillow Observed Rent Index (ZORI). Population figures come from the U.S. Census Bureau Population Estimates Program (2020-2024 vintage). All datasets are publicly available. Housing data updated 2026-02-28.