Top-Floor Residential Income
New
For Sale
$279,000
7425 DEMOCRACY BLVD #A-316, Bethesda, MD 20817
BETHESDA, MD
Property Size900 SF
Price / SF$310
Days on Market3
Property Features for 7425 DEMOCRACY BLVD #A-316
General Information
Property type
Residential Multi Family
Property subtype
Other
Bedrooms
1
Bathrooms
1
Full bathrooms
1
Rooms
Bedroom 1
Subdivision
WESTLAKE PARK
Elementary school
ASHBURTON
Middle school
NORTH BETHESDA
High school
WALTER JOHNSON
Elementary school district
MONTGOMERY COUNTY PUBLIC SCHOOLS
Middle school district
MONTGOMERY COUNTY PUBLIC SCHOOLS
High school district
MONTGOMERY COUNTY PUBLIC SCHOOLS
Standard status
Active
Amenities
pool
tennis courts
renovated lobby
common areas
private washer/dryer
private storage closet
balcony
Building Details
Year built
1975
Listing Agency:
One Montgomery
(301) 424-0900
Listed By:
Jim Beckley
(202) 262-2274
Added: Sep 3
Changed: Sep 4
Last Checked: Sep 5 at 6:06PM
MLS# MDMC2253316
Copyright © 2026 Long & Foster Real Estate. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This approximately 900-square-foot, one-bedroom condominium is positioned on the top floor and features an open living arrangement with southern exposure. The renovated kitchen includes off-white Shaker cabinets, quartz countertops, stainless-steel appliances, a wine refrigerator, breakfast bar, and externally vented range hood. The adjoining living and dining area opens to a south-facing balcony. Additional improvements include a private enclosed washer and dryer, new wall-to-wall carpeting, fresh paint, an upgraded electrical panel, and individually controlled HVAC. A private storage closet is located near the residence.
The building faces West Lake from the rear and is near Cabin John Park, the Nature Center, and the Tennis Center. Community amenities include an upgraded pool, tennis courts, renovated lobby and common areas, and ample free parking. The property is served by access to I-270 and I-495, along with nearby shopping, dining, Metro, Bethesda, Potomac, Rockville, and Northern Virginia.
The building faces West Lake from the rear and is near Cabin John Park, the Nature Center, and the Tennis Center. Community amenities include an upgraded pool, tennis courts, renovated lobby and common areas, and ample free parking. The property is served by access to I-270 and I-495, along with nearby shopping, dining, Metro, Bethesda, Potomac, Rockville, and Northern Virginia.
Key Highlights
- Approximately 900 SF one‑bedroom condominium on the top floor
- Updated kitchen with quartz counters, stainless‑steel appliances, wine refrigerator, and breakfast bar
- Southern exposure with a private balcony accessible from the living area
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
$14,860
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
5.33%
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%
$297,200
$297.2K
Cap Rate 7%
$212,286
$212.3K
Cap Rate 9%
$165,111
$165.1K
Market Conditions
NOI Build-Up for 900 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
$29.1K $32.28/SF
− Vacancy
−$2.0K −$2.26/SF
EGI
$27.0K $30.02/SF
− OpEx
−$12.2K −$13.51/SF
NOI
$14.9K $16.51/SF
Area
Montgomery County, MD
Vacancy
7.00%
Lease Rate
$32.28 /SF/Yr
Expense Ratio
45.00%
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%
$297,200
Cap Rate 7%
$212,286
Cap Rate 9%
$165,111
Alternative Uses
Best Use
Apartment 5plus
$212.3K
$185.8K – $247.7K
NOI $14,860 @ 7.0% cap · market cap 5.33%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$316.6K
$277.0K – $369.4K
NOI $22,162 @ 7.0% cap · market cap 7.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,074
Businesses Nearby
Explore this area
Business Placement
Demographics for 20817, MD
38,908
Population
14,363
Households
2.7
Avg Household Size
44
Median Age
85%
College-Educated
98%
High-School Grad
14.0 sq mi
ZIP Area
2,779
Density / Sq Mi
$240,104
Median Household Income
$121,313
Median Earnings
$3,155
Median Rent
$1,142,300
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Updated one-bedroom residence with southern exposure, private balcony, and access to community recreation amenities.
Where is this residential income property located?
The property is located at 7425 DEMOCRACY BLVD #A-316 Bethesda, MD.
What is the asking price?
The asking price for this property is $279,000.
What are key features of this property?
This property features: Approximately 900 SF one‑bedroom condominium on the top floor; Updated kitchen with quartz counters, stainless‑steel appliances, wine refrigerator, and breakfast bar; Southern exposure with a private balcony accessible from the living area
