ZIP Code 21502 Housing Market

📝 Local Market Notes

The housing market in ZIP code 21502, located within Allegany County, Maryland, demonstrates a sustained upward price trajectory over the past five years. The FHFA House Price Index (HPI) for this area rose from 158.95 in 2021 to 217.9 in 2025, representing a cumulative increase of approximately 37 percent. This consistent appreciation indicates a resilient local market that has outpaced broader regional trends during the post-pandemic recovery period. The recent year-over-year growth of 4.30 percent further confirms that momentum remains strong within this specific geographic segment. When compared to broader benchmarks, ZIP 21502 exhibits notable positive divergence. The area’s 4.30 percent annual growth exceeds the Allegany County average of 3.31 percent and significantly outperforms the Maryland state average of 0.95 percent. This divergence suggests that specific local factors are driving demand in 21502 more aggressively than in surrounding regions. Additionally, the contrast with nearby ZIP 21532, which experienced a 4.33 percent decline, highlights the distinct and isolated strength of the 21502 sub-market. While the national 30-year mortgage rate stands at 7.40 percent, the local price appreciation suggests that supply constraints or unique locality amenities are sustaining buyer interest despite higher financing costs. The sub-market character of ZIP 21502 aligns with entry-level to mid-range affordability rather than luxury segments. The parent county’s median home value of $154,900 and median household income of $59,603 indicate a market accessible to first-time buyers and working professionals. With an owner-occupancy rate of 70.7 percent, the area maintains a stable residential foundation, though the median gross rent of $805 per month suggests a viable rental sector as well. For prospective buyers, the data indicates a competitive environment where prices are rising faster than the state average. Residents should anticipate continued pressure on entry-level inventory, as the area’s outperformance relative to the county and state signals sustained demand relative to available housing stock.

Based on FHFA House Price Index data.