Leased Duplex with Detached
For Sale
$247,000
226 South Potomac Street, Hagerstown, MD 21740
Two-unit residential income property with an established tenant base, detached garage, and R4 zoning.
Property Size1,607 SF
Price / SF$153.70
Days on Market267
Property Features for 226 South Potomac Street
General Information
Standard status
Active
Size
1,607 SF
Total Parking Spaces
1
Property subtype
Multi-Family / Fee Simple
Zoning
R4
Occupancy
100%
Units
Unit Mix
1 x 2BR/1.5BA, 1 x 1BR/1BA
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$979
Amenities
No
Wood Frame
No Pool
Building Details
Year Built
1883
Tenancy
Multi
Listing Agency:
RG Realty, Inc.
(301) 991-0207
Listed By:
Roberto G. Gonzalez · License #598229
(301) 991-0207
Source:
Compass
Added: Dec 7, 2025
Changed: Aug 30
Last Checked: Aug 30 at 8:16PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of RG Realty, Inc.
Investment Insights
Based on property information with market context.
This 1,607-square-foot duplex, built in 1883, contains two leased residential units with a varied floor plan. One unit offers 2 bedrooms and 1.5 baths, while the second includes 1 bedroom and 1 bath. A detached garage with space for two vehicles sits behind the building and provides an additional property component.
The property is located within Hagerstown city limits in Washington County and is zoned R4. Professional management is in place, and access is coordinated in advance because of tenant occupancy. The property may also be acquired with two additional occupied assets offered as part of a broader package.
The property is located within Hagerstown city limits in Washington County and is zoned R4. Professional management is in place, and access is coordinated in advance because of tenant occupancy. The property may also be acquired with two additional occupied assets offered as part of a broader package.
Key Highlights
- Two fully leased residential units
- 1,607 SF duplex built in 1883
- Unit mix includes 2 bedrooms and 1.5 baths plus 1 bedroom and 1 bath
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$16,857
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.82%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$337,140
$337.1K
Cap Rate 7%
$240,814
$240.8K
Cap Rate 9%
$187,300
$187.3K
Market Conditions
NOI Build-Up for 1,607 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$26.0K $16.20/SF
− Vacancy
−$2.0K −$1.22/SF
EGI
$24.1K $14.99/SF
− OpEx
−$7.2K −$4.50/SF
NOI
$16.9K $10.49/SF
Area
Washington County, MD
Vacancy
7.50%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$337,140
Cap Rate 7%
$240,814
Cap Rate 9%
$187,300
Alternative Uses
Best Use
Multifamily LT 5
$240.8K
$210.7K – $281.0K
NOI $16,857 @ 7.0% cap · market cap 6.82%
Second Best
Apartment 5plus
$216.1K
$189.1K – $252.1K
NOI $15,124 @ 7.0% cap · market cap 6.12%
Theoretical Best
Office A
$356.5K
$311.9K – $415.9K
NOI $24,953 @ 7.0% cap · market cap 10.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,991
Businesses Nearby
Explore this area
Business Placement
Demographics for 21740, MD
65,619
Population
27,002
Households
2.4
Avg Household Size
39
Median Age
20%
College-Educated
86%
High-School Grad
70.9 sq mi
ZIP Area
926
Density / Sq Mi
$59,410
Median Household Income
$42,159
Median Earnings
$1,031
Median Rent
$241,600
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Duplex - Two-unit residential income property with an established tenant base, detached garage, and R4 zoning.
Where is this duplex located?
The property is located at 226 South Potomac Street Hagerstown, MD.
What is the asking price?
The asking price for this property is $247,000.
What are key features of this property?
This property features: Two fully leased residential units; 1,607 SF duplex built in 1883; Unit mix includes 2 bedrooms and 1.5 baths plus 1 bedroom and 1 bath
