1997 CUS Summary Report

Household Income

County’s median household income is nearly twice the Nation’s

Montgomery County is prosperous and affluent, as is the Washington, D.C.

region, basking in the federal government and robust high tech rays. In the race of
highest incomes, the County bests several marks. Its estimated 1996 median household
income at $66,085 is 86 percent higher than the nation’s $35,500, 40 percent higher
than Maryland’s $47,100 and vies
with Howard County for the number
one position in the state. Over a County’s Household Income Is Almost
quarter of the County’s households Twice the U.S. Median
pull in incomes of $100,000 or more. 1996 Median Household Income
According to the U.S. Census $80,000
Bureau, the nation’s share of $66,085
$60,000
households with incomes of $100,000
$34,492
or more is at an all-time record high. $40,000

In 1996, 8.2 percent of the United $20,000

State’s households - or 1 in 12 -
$0
reported total income of at least Montgomery County United States
$100,000. In Montgomery County -- 2
out of 7 households exceed $100,000
-- a household is three times more
likely than the national norm to Figure 39: 1996 Median Incomes of the County and the Nation
have such high income.

Montgomery County’s lofty household incomes are fueled by high paying jobs,
rewarding the well-educated resident workforce in a variety of professional and
managerial occupations. Behind today’s record level of affluence are the dual-income
couples of the baby boom generation reaching their peak-earning years. Of the 85,200
County households with incomes of $100,000 or more, 68 percent are dual-income
couples similar to 65 percent across the nation. The rising economic fortunes of dual-
income households should boost household income for another ten years.

Local minorities with median household incomes higher than their national
counterpart contribute strongly to Montgomery County’s high median income. The 1996
median income of local Asian and Pacific Islander households is $65,630, 45 percent
higher than this group’s national median of $45,420. Black households in the County
bring in twice the household income of blacks nationwide, $50,325 compared to
$25,065. Hispanic households at $47,310 may be only three-quarters of the County
median, but the figure is also 78 percent more than the national Hispanic median income
of $26,585.
 HOUSEHOLD INCOME

Income upturn after a decade of almost running in place

Just keeping pace with the decade’s inflation rate, the County’s 1996 median
household income slipped only $400 since 1986, $66,085 compared to the adjusted
1986 median of $66,493. The stagnant income figures across the decade are primarily
due to job losses and slow job growth during the County’s prolonged recession in the
early 1990s. Subsequently, estimates show household income growth outpaced the
region’s cost of living increase. Montgomery County’s estimated 1999 median household
income of $71,614 is an 8.4 percent gain over the three years. This upturn exceeds the
5.2 percent rise in the Baltimore-Washington CMSA consumer price index, which
translates into more real income for many Montgomery County households, increasing
by 3.2 percent between 1996 and 1999.

It is remarkable that Montgomery County’s median income kept close pace with
inflation considering the underlying demographic changes that occurred since 1987.
Notably, the percentage of whites, who have the highest median income, decreased
over the decade. This points to the strong contribution of minorities to the County’s
median household income. Reduction in household income was influenced by changes
in household composition, although the changes are less pronounced than in the
previous three decades. The County witnessed increases in single parent and single
person households (predominately elderly), two household types with characteristically
low median incomes. New households moving into the County are younger and earning
less than the long-term residents. Substantial economic gains among mature
households in their peak earning years (generally, ages 45 to 54) counterbalanced the
various factors that could have drawn the median down. Prosperity will gain momentum,
as the baby boom wave crests, funneling unprecedented numbers of people into their
peak earning years.

Who won? Who lost?

Income changes across the decade are documented for the four housing
structure types. The biggest income gainers among the structure types are high-rise
apartments. The 1996 median income of $44,985 for this group is an 8.4 percent
increase above the adjusted 1986 figure of $41,325. Most of the high-rise development
during this period has been upper bracket luxury condominiums and apartments
commanding high prices and attracting the 40’s and 50’s crowd. This rise also coincides
with the increasing presence of empty nesters and ‘young‘ seniors in high-rises, as many
moved into luxury apartments in North Bethesda and Friendship Heights areas. The over
65 age bracket and the empty nesters, ages 55 to 64, are the only age groups in the
County enjoying economic gain. The incomes of those living in townhouses held steady
across the decade, while single-family detached and garden apartments both dropped
by $900. This drop is especially painful to those renting garden apartments because
their median income is only $39,500 compared to $87,740 for those in single family
detached.

Family and non-family median incomes held their ground in constant dollars
since 1986. The median family income went up slightly, by $862, to $77,100 while the
non-family median shrank by $237 to $42,415. A closer look at the different household
types reveals that most outpaced inflation across the decade except for unrelated, non-
family households. Married couple households gained $2,317, or 2.9 percent, and single
parent families went up 3.9 percent, or $1,748. Even single-person households

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1997 CUS Summary Report

witnessed a gain of $2,117, or 5.4 percent, mainly attributable to the well-off elderly. The
incomes of non-family households with two or more unrelated individuals (approximately
2.7 percent or 8,400 households in the County) were devoured by inflation – these
households with a $61,290 median income felt a 13.2 percent drop in their real income
since 1986. Household size, mirroring the characteristics of household types, reflects
much the same pattern of gains. One- and two-person households gained over $2,000;
three-person households were up a negligible $261; four-person households usually
having dual incomes are doubly blessed with the highest median, $88,205 and the
greatest gain, $4,081. Larger households, five or more persons, are the only household
size that lost ground, -$2,637, down to $82,285, which is still a very substantial median
by any definition.

1996 Household Income by Age of Household Head

Total
1996 Household Income < 35 35-44 45-54 55-64 65+ Households %
< $5,000 1.6 1.0 0.4 1.3 0.9 3,226 1.0%
$5,000- 9,999 0.9 0.8 0.7 1.3 2.6 3,787 1.2%
$10,000- 14,999 1.5 0.6 1.2 1.4 4.9 5,762 1.9%
$15,000- 19,999 2.8 1.5 1.1 0.9 5.2 7,354 2.4%
$20,000- 24,999 4.0 2.9 1.6 3.3 6.2 10,869 3.5%
$25,000- 29,999 6.5 2.6 2.3 3.0 6.2 12,514 4.0%
$30,000- 34,999 7.9 3.2 3.0 3.0 6.1 14,387 4.6%
$35,000- 39,999 6.8 5.0 3.5 3.9 5.6 15,487 5.0%
$40,000- 44,999 6.6 6.0 4.0 3.5 6.2 16,661 5.4%
$45,000- 49,999 7.4 5.5 3.3 4.0 5.2 15,783 5.1%
$50,000- 54,999 8.1 5.0 4.3 5.2 6.5 17,956 5.8%
$55,000- 59,999 4.4 4.6 3.7 3.6 4.3 12,919 4.2%
$60,000- 64,999 6.7 5.2 4.5 4.4 5.2 16,204 5.2%
$65,000- 69,999 4.8 4.5 3.6 3.3 3.0 12,245 3.9%
$70,000- 74,999 4.7 5.0 4.1 3.4 4.4 13,555 4.4%
$75,000- 79,999 3.3 4.2 3.5 3.6 3.3 11,243 3.6%
$80,000- 89,999 5.8 7.4 6.1 5.2 4.4 18,434 5.9%
$90,000- 99,999 5.0 5.6 7.4 6.2 3.8 17,555 5.6%
$100,000- 119,999 5.4 10.0 11.1 12.2 6.2 27,706 8.9%
$120,000- 139,999 2.6 6.5 9.2 8.4 2.9 18,414 5.9%
$140,000- 159,999 1.3 4.3 6.1 4.8 2.0 11,711 3.8%
$160,000+ 0.0 0.0 0.0 0.0 0.0 27,364 8.8%
Total Percentage 98.1 91.3 84.7 85.8 95.4 311,135 100.0%

Total Households 60,065 81,165 70,170 40,775 58,960 311,135

Median 1996 Income $52,475 $71,660 $88,605 $81,850 $50,540 $66,085
% HH > $100,000 9.3 20.7 26.4 25.4 11.1 27.4%

Table 69: Household Income by Householder Age

When compared by age, every householder in the County under the age of 55
has been hit hard since 1986. This probably reflects the growing percent of in-movers in
the younger age groups as well as the recession. Households headed by adults under
35 lost $3,669 in 1996 constant dollars (down 6.5 percent), those ages 35 to 44 lost
$4,518 (down 5.9 percent), and even the peak earners, 45 to 54, with the highest
 HOUSEHOLD INCOME

median income of $88,605, absorbed a loss of $2,575, or 3.4 percent. Mature

households captured the economy’s bloom, the well cushioned, 55 to 64 year old
householders feathered their empty nests with a lofty median income of $81,850 and
had the greatest gain, $6,443, up 8.5 percent. Those over 65 enjoy a comfortable
median income of $50,540, which is typically coupled with a low housing cost burden.
The senior households - gaining $4,163 or 9.0 percent – are one of the two age groups
in the County seeing a real dollar income increase since 1986.

Median Household Income Changes: 1986 to 1996

1986 Real Dollar %

(1996 $) 1996 Change Change
Montgomery County $66,493 $66,085 -$408 -0.61
Structure Type
Single Family $79,846 $79,795 -$51 -0.06
SF Detached $88,661 $87,740 -$921 -1.04
SF Attached $63,489 $63,500 $11 0.02
Multi-family $40,702 $40,935 $233 0.57
Garden Apt $40,429 $39,500 -$929 -2.30
High-rise Unit $41,325 $44,985 $3,660 8.86
Tenure
Own $79,457 $77,815 -$1,642 -2.07
Rent $40,843 $40,190 -$653 -1.60
Household Type
Family $76,238 $77,100 $862 1.13
Married Couple $80,993 $83,310 $2,317 2.86
Single Parent $44,342 $46,090 $1,748 3.94
Other Related $53,058 $62,255 $9,197 17.33
Non-family $42,652 $42,415 -$237 -0.56
All Unrelated $67,560 $61,290 -$6,270 -9.28
Single Person $38,998 $41,115 $2,117 5.43
Household Size
1 Person $38,998 $41,115 $2,117 5.43
2 Persons $68,082 $70,420 $2,338 3.43
3 Persons $76,389 $76,650 $261 0.34
4 Persons $84,124 $88,205 $4,081 4.85
5+ Persons $84,922 $82,285 -$2,637 -3.11
Household Head Age
< 35 $56,144 $52,475 -$3,669 -6.53
35-44 $76,178 $71,660 -$4,518 -5.93
45-54 $91,180 $88,605 -$2,575 -2.82
55-64 $75,407 $81,850 $6,443 8.54
65+ $46,377 $50,540 $4,163 8.98
Race & Hispanic Origin
White $68,819 $70,515 $1,696 2.46
Black $49,500 $50,325 $825 1.67
Asian & Pacific Is. $59,151 $65,630 $6,479 10.95
Hispanic $56,590 $47,310 -$9,280 -16.40

Table 70: Median Household Income Changes 1987 and 1997

Asians and Hispanics in Montgomery County have experienced divergent income

stories for the past ten years. The 1996 median income of Hispanic headed households
nose-dived from an adjusted 1986 median of $56,590 to $47,310, a drop of 16.4
percent. This is also true for Hispanics nationwide, as decreased income reflects their
massive immigration during the 1980s. The recent Hispanic arrivals in Montgomery

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1997 CUS Summary Report

County are young families, facing language barriers and many working in low wage
service positions. Hispanic household incomes are expected to climb, however, as the
percentage of recent immigrants comprises a smaller proportion of the assimilated
Hispanic population. In contrast, since 1986, the median income of Asian households
has had the greatest increase, $6,479, or 15.6 percent in real dollars, to reach $65,630.
Asian households are, for the most part, families with older, well-educated adults
working in professional occupations. Often, extended Asian families have multiple wage
earners living under one roof. Median income of white households went up $1,700, to
$70,515, outrunning inflation by 3.5 percent. Black households also barely beat inflation
over the decade, squeezing an extra $825 to reach $50,325.

County median disguises underlying diversity

A household’s level of income affects housing choice, as evidenced in the

relationship of median income to structure type. Median income differs dramatically by
structure type; the median of single-family detached houses is more than twice the
income of garden apartments, $87,740 and $39,500, respectively. The discrepancy by
structure type is explained by the underlying household demographics. For example,
garden apartments typically have more single occupants who are younger and have

1996 Household Income by Structure Type

1996 Single-Family Multi-family Total

Household Income Detached Attached Total Garden Highrise Total Households %
< $5,000 0.3 0.2 0.3 3.2 2.6 3.0 3,226 1.0%
$5,000- 9,999 0.3 0.4 0.4 2.9 4.6 3.4 3,787 1.2%
$10,000- 14,999 1.1 0.9 1.0 3.9 4.0 3.9 5,762 1.9%
$15,000- 19,999 1.3 0.9 1.2 5.3 5.5 5.4 7,354 2.4%
$20,000- 24,999 1.5 2.5 1.7 8.8 6.2 8.0 10,869 3.5%
$25,000- 29,999 2.2 3.3 2.5 8.6 6.4 7.9 12,514 4.0%
$30,000- 34,999 2.3 5.1 3.0 8.9 8.3 8.8 14,387 4.6%
$35,000- 39,999 3.0 6.0 3.7 9.4 5.7 8.2 15,487 5.0%
$40,000- 44,999 3.7 6.0 4.3 8.7 6.8 8.1 16,661 5.4%
$45,000- 49,999 3.8 6.6 4.5 7.1 5.1 6.5 15,783 5.1%
$50,000- 54,999 4.2 8.1 5.2 7.7 6.4 7.3 17,956 5.8%
$55,000- 59,999 3.6 5.0 4.0 4.6 4.8 4.6 12,919 4.2%
$60,000- 64,999 4.5 7.1 5.1 5.4 5.4 5.4 16,204 5.2%
$65,000- 69,999 3.8 5.4 4.2 3.2 3.3 3.3 12,245 3.9%
$70,000- 74,999 4.5 5.9 4.9 2.7 3.8 3.1 13,555 4.4%
$75,000- 79,999 4.1 4.7 4.2 1.6 2.9 2.0 11,243 3.6%
$80,000- 89,999 7.3 6.8 7.2 2.7 2.8 2.7 18,434 5.9%
$90,000- 99,999 7.2 6.1 6.9 2.0 3.0 2.3 17,555 5.6%
$100,000- 119,999 12.7 7.4 11.4 1.4 5.4 2.6 27,705 8.9%
$120,000- 139,999 8.4 5.8 7.8 0.8 2.0 1.2 18,414 5.9%
$140,000- 159,999 5.7 2.3 4.9 0.4 2.0 0.9 11,711 3.8%
$160,000- 179,999 3.2 1.3 2.7 0.2 0.7 0.4 6,454 2.1%
$180,000- 199,999 2.2 0.5 1.8 0.0 0.3 0.1 4,123 1.3%
$200,000- 249,999 3.9 0.9 3.2 0.1 1.0 0.4 7,436 2.4%
$250,000- 299,999 1.7 0.4 1.4 0.4 0.1 3,149 1.0%
$300,000+ 3.4 0.4 2.6 0.2 0.7 0.4 6,202 2.0%
Total Percentage 100.0 100.0 100.0 100.0 100.0 100.0 311,135 100.0%

Total Households 161,925 53,840 215,765 65,020 30,350 95,370 311,135

Median 1996 Income $87,740 $63,500 $79,795 $39,500 $44,985 $40,935 $66,085
% HH > $100,000 41.2 19.0 35.7 3.2 12.5 6.1 27.4%

Table 71: Household Income by Structure Type

 HOUSEHOLD INCOME

entry level and mid-career jobs. About one-third of rental high-rises are luxury units
commanding high housing costs. Townhouses offer an affordable housing option
attracting young, first-time owners. The typical existing or resale, single-family detached
house in Montgomery County requires an approximate household income of $75,000 to
buy the median sale priced house. Contrasts by structure type are further reflected in
income variance by tenure where the median income of owner occupied households at
$77,815 is almost double that of renters, $40,190. Most single-family dwellings are
owner occupied while multi-family units are usually rented.

Income distribution varies by household composition, which is intertwined with

the household’s life stage and the number of workers. The practically double family
household income - $77,100, compared to $42,415 for non-family households -
underscores the lower incomes of single earner households, shared housing of young
entry level workers, or single elderly found in non-family households. Married couples,
predominately dual earners, have the highest median income, $83,310, with 38 percent
earning over $100,000. On the bottom rungs are single persons with $41,115 (only 6
percent have incomes over $100,00) and single parent households at $46,090 (11
percent bringing in over $100,000).

1996 Household Income by Household Type

Family Nonfamily
1996 Married- Single- Other All Single Total
Household Income couple Parent Relatives Total Unrelated Person Total Households %
< $5,000 0.4 2.5 1.2 0.7 1.9 2.2 2.2 3,226 1.0%
$5,000- 9,999 0.3 2.0 0.9 0.5 0.7 3.7 3.4 3,787 1.2%
$10,000- 14,999 0.7 2.0 1.9 0.9 1.6 5.0 4.7 5,762 1.9%
$15,000- 19,999 1.0 4.8 0.8 1.5 4.1 5.2 5.2 7,354 2.4%
$20,000- 24,999 1.7 6.7 4.9 2.4 2.7 7.2 6.8 10,869 3.5%
$25,000- 29,999 2.4 7.7 3.0 3.0 1.9 7.7 7.2 12,514 4.0%
$30,000- 34,999 2.9 6.8 2.1 3.3 2.9 8.9 8.4 14,387 4.6%
$35,000- 39,999 3.3 8.0 5.8 3.9 7.2 8.1 8.0 15,487 5.0%
$40,000- 44,999 3.9 7.8 5.6 4.4 5.4 9.0 8.6 16,661 5.4%
$45,000- 49,999 4.2 7.5 4.6 4.6 6.5 6.6 6.6 15,783 5.1%
$50,000- 54,999 5.0 6.4 8.9 5.2 8.6 7.0 7.1 17,956 5.8%
$55,000- 59,999 3.8 4.9 4.8 3.9 5.1 4.7 4.8 12,919 4.2%
$60,000- 64,999 5.0 4.5 11.9 5.1 5.4 5.3 5.4 16,204 5.2%
$65,000- 69,999 4.2 3.2 5.2 4.1 5.7 3.1 3.3 12,245 3.9%
$70,000- 74,999 5.0 3.2 4.5 4.8 6.7 2.8 3.2 13,555 4.4%
$75,000- 79,999 3.7 3.9 5.5 3.8 6.2 2.9 3.2 11,243 3.6%
$80,000- 89,999 7.5 3.2 5.2 6.9 5.5 2.5 2.8 18,434 5.9%
$90,000- 99,999 7.2 3.4 6.9 6.8 7.4 1.8 2.2 17,555 5.6%
$100,000- 119,999 12.0 4.4 7.7 11.0 2.9 2.5 2.5 27,706 8.9%
$120,000- 139,999 8.0 3.6 3.1 7.4 4.9 1.2 1.5 18,414 5.9%
$140,000- 159,999 5.1 1.0 2.8 4.6 3.1 0.9 1.1 11,711 3.8%
$160,000+ 12.6 2.3 2.5 11.1 3.5 1.7 1.8 27,364 8.8%
Total Percentage 100.0 100.0 100.0 100.0 100.0 100.0 100.0 311,135 100.0%

Total Households 198,160 29,515 5,795 233,135 8,425 69,240 78,000 544,270
Median 1996 Income $83,310 $46,090 $62,255 $77,100 $61,290 $41,115 $42,415 $66,085
% HH > $100,000 37.8 11.3 16.1 34.1 14.5 6.3 7.0 27.4%

Table 72: Household Income by Household Type

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1997 CUS Summary Report

Income differences by household size tell much the same story as household
composition. Single-person households, predominately young, new to the workforce or
retired elderly have the lowest median income, $41,115. Income rises as the household
size increases until reaching households with five or more individuals. Two-, three-, and
four-person households typically bring in $70,420, $76,650, and $88,205, respectively.
Larger households are more likely to have multiple wage earners. Also, larger size
households typically have more mature household heads, whose earning potential
reflects their greater work experience. Median income of five persons or more
households drops to $82,285. These largest households may be younger families with
more children or extended families. For all household size categories except single-
person households, the median incomes uniformly exceeded the County median of
$66,085 by 6 to 25 percent.

1996 Household Income by Household Size

1996 Number of Persons in Household Total

Household Income 1 2 3 4 5+ Households %
< $5,000 2.2 1.0 0.8 0.1 0.4 3,226 1.0%
$5,000- 9,999 3.7 0.6 0.5 0.4 0.3 3,787 1.2%
$10,000- 14,999 5.0 1.0 1.6 0.5 0.3 5,762 1.9%
$15,000- 19,999 5.2 1.8 1.6 1.2 0.9 7,354 2.4%
$20,000- 24,999 7.2 2.9 2.4 1.8 1.9 10,869 3.5%
$25,000- 29,999 7.7 3.3 3.3 2.2 2.3 12,514 4.0%
$30,000- 34,999 8.9 3.9 2.8 3.2 2.9 14,387 4.6%
$35,000- 39,999 8.1 4.7 3.8 3.0 4.3 15,487 5.0%
$40,000- 44,999 9.0 4.9 4.7 2.9 3.9 16,661 5.4%
$45,000- 49,999 6.6 4.9 4.7 3.8 5.1 15,783 5.1%
$50,000- 54,999 7.0 6.3 5.3 3.7 5.5 17,956 5.8%
$55,000- 59,999 4.7 3.9 4.7 3.5 3.9 12,919 4.2%
$60,000- 64,999 5.3 6.0 3.9 4.6 5.4 16,204 5.2%
$65,000- 69,999 3.1 4.4 3.7 4.6 3.7 12,245 3.9%
$70,000- 74,999 2.8 5.0 5.1 4.3 4.5 13,555 4.4%
$75,000- 79,999 2.9 4.0 3.7 3.9 3.2 11,243 3.6%
$80,000- 89,999 2.5 6.3 7.8 7.8 6.2 18,434 5.9%
$90,000- 99,999 1.8 5.9 7.8 7.3 7.2 17,555 5.6%
$100,000- 119,999 2.5 9.8 10.1 14.0 9.9 27,706 8.9%
$120,000- 139,999 1.2 6.6 7.8 8.2 7.3 18,414 5.9%
$140,000- 159,999 0.9 4.0 4.4 5.7 5.0 11,711 3.8%
$160,000+ 1.7 8.9 9.5 13.4 15.8 27,364 8.8%
Total Percentage 100.0 100.0 100.0 100.0 100.0 311,135 100.0%

Total Households 69,240 104,420 53,965 49,940 33,570 311,135

Median 1996 Income $41,115 $70,420 $76,650 $88,205 $82,285 $66,085
% HH > $100,000 6.3 29.3 31.9 41.4 38.0 27.4%

Table 73: Household Income by Household Size

Income by age of householder varies progressively, reflecting the individual’s life

stage and earning potential. Younger household heads, under age 35, beginning careers
and, for some, families, pull in $52,475 (79.4 percent of the total median income).
Householders ages 35 to 44 with families underway, mid-career and usually dual
incomes have a median household income of $71,660. Households headed by 45 to 54
 HOUSEHOLD INCOME

year olds have a prime earner, possibly two, in advanced careers resulting in the highest
median, $88,505, one-third higher than the County’s median. Household income starts
dropping off with empty nesters, 55 to 64, $81,850, as there are some workers beginning
early retirement and there are fewer dual income couples because women in this age
group typically did not hold professional careers. The 65 and up age cohort, a mix of
householders including those delaying retirement, working part-time, fixed-income
couples, or single retirees, has the lowest median income, $50,540 (76.5 percent of the
County’s median).

This age and income relationship is fairly consistent across the years. The 1977
Census Update Survey reported the median income of householders under the age of
35 amounted to 74 percent of the total median. A similar relationship for this age group
was found in the 1984 Census Update Survey at 80 percent, and continued to gain in
1987 to 84 percent of the median for all households. The latest survey found the median
income of household heads under the age of 35 slipped to 79 percent in 1996. The age
group with the consistently highest median household income reported in both 1986 and
1996 are the 45 to 54 year old householders, raking in peak career earnings. The elderly
consistently had the lowest median income of all the householder age groups. Many
older people have lower than average household incomes because they are no longer
working, but they usually have higher than average net worth because they own their
homes free and clear.

Race & Hispanic monetary split

The 1996 median income of minority or nonwhite households at $53,172 is 80

percent of the County’s total household median income and 75 percent of the white
household median. A closer look at the income distribution reveals 14.6 percent of the
minority households had incomes below $25,000, almost twice the percentage found in
white households. In the upper
brackets, only 18 percent of minority Median Household Income Varies by
Race and Hispanic Origin
households have incomes over
$100,000 compared to 31 percent of 1996 Median Household Income
white households. Further income
$80,000 $70,515
distinctions can be made along $65,630

specific racial and Hispanic lines. The $60,000

$50,325
$47,310
income gap observed in 1996 ranges $40,000
from the high, $70,515 (6.7 percent
above the total median) for white $20,000

households, to the low, $47,310 (28.4 $0

percent below the median) for White Asian Black Hispanic*

Hispanic households. The median * Those of Hispanic origin may be of any race.
incomes of Asian households, at
$65,630, and black households, at
Figure 40: Median Household Income by Race and
$47,310, fall in the middle. Hispanic Origin

Much of the income disparity among racial groups may be explained by the
associated group differences in household composition, stage in life cycle, the
householder’s age, educational attainment and occupation, and discrimination. For
example, behind the sharply different black and white medians lies the different
household composition. Married couples head 50.1 percent of black households
compared to 64.2 percent of white households. Moreover, a single parent heads almost

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1997 CUS Summary Report

one-quarter of black households, i.e., a minority female, single-wage earner - a

combination of typically low-income categories - supports one out of four black
households. Only 7.4 percent of white households are single parents. The income gap
between blacks and whites narrows when comparing younger, college-educated or
married households, reflecting financial advantages that education and marriage bring
and the relatively recent breakthroughs in racial discrimination.

Asian households are well positioned for affluence, having the highest
percentage of married couple families among the racial groups, extremely well-educated
with two out of three adults having at least a college degree, and most workers in high
paying, mid- or peak professional careers. Also, Asian households have the second
highest number of workers per household, 1.9, pointing to married couple household’s
potential for dual incomes and possibly multi-earners in extended family living situations.
The median household income of Asians maybe limited by the lower incomes of the
recent immigrants and language barriers in the workplace.

Income trends for Hispanic households are not as positive. While many
Hispanics are educated professionals, a large share are undereducated, recent
immigrants. If you live in a Hispanic household you are twice as likely as the general
population to be in a household making less than $25,000; 19.4 percent of Hispanic
households compared to 10.0 percent of all households have incomes less than
$25,000. Hispanic households have the lowest median income in the County, despite
averaging two workers per household, the highest rate among the racial/ethnic groups.
The lower median income of Hispanic households is strongly tied to this group’s
employment concentration in service occupations, below average educational
attainment, prevalence of young families and massive influx of recent immigrants. Over-
representation of Hispanic workers in the low-wage services industry weighs down the
median income even though an equal proportion of Hispanics (albeit, the lowest
percentage of all groups) work in professional occupations. The Hispanic population has
the highest concentration of adults not completing high school -- one out of five
Hispanics do not have a high school diploma -- and the lowest percentage of college
graduates or professional degrees, 39 percent. A number of the County’s immigrants are
refugees from economically stressed or war torn countries where educational
opportunities are rare. Educational achievement rises significantly with second and third
generation Hispanics. A very high percentage of Hispanic households are married
couple families, but they are young families with dependent children. One third of the
Hispanic population is under the age of 18. The median income of Hispanic households
is expected to rise, as the percentage of recent immigrants comprises a smaller
proportion of the assimilated Hispanic population.
 HOUSEHOLD INCOME

1996 Household Income by Householder's Race or Hispanic Origin

1996 Race Hispanic Total

Household Income White Black Asian/P.I. Origin Households %
< $5,000 0.8 2.6 1.0 1.6 3,226 1.0%
$5,000- 9,999 1.0 1.8 1.8 2.4 3,787 1.2%
$10,000- 14,999 1.8 2.5 1.7 2.2 5,762 1.9%
$15,000- 19,999 2.0 3.8 2.0 5.5 7,354 2.4%
$20,000- 24,999 3.2 4.9 4.0 7.7 10,869 3.5%
$25,000- 29,999 3.4 5.5 6.1 7.4 12,514 4.0%
$30,000- 34,999 4.0 7.1 4.9 6.7 14,387 4.6%
$35,000- 39,999 4.4 8.3 5.3 7.3 15,487 5.0%
$40,000- 44,999 5.1 7.1 5.2 6.2 16,661 5.4%
$45,000- 49,999 4.8 6.1 4.1 6.4 15,783 5.1%
$50,000- 54,999 5.6 7.0 5.1 6.4 17,956 5.8%
$55,000- 59,999 4.1 5.3 3.2 2.8 12,919 4.2%
$60,000- 64,999 5.2 5.7 5.0 3.7 16,204 5.2%
$65,000- 69,999 4.2 2.4 4.0 4.4 12,245 3.9%
$70,000- 74,999 4.4 3.9 5.6 3.4 13,555 4.4%
$75,000- 79,999 3.8 2.6 3.5 3.4 11,243 3.6%
$80,000- 89,999 6.3 5.1 5.1 5.0 18,434 5.9%
$90,000- 99,999 6.0 3.9 6.1 3.5 17,555 5.6%
$100,000- 119,999 9.7 5.4 7.7 4.1 27,706 8.9%
$120,000- 139,999 6.3 3.9 6.0 4.3 18,414 5.9%
$140,000- 159,999 4.0 2.0 3.9 0.9 11,711 3.8%
$160,000+ 10.0 3.0 8.5 4.6 27,364 8.8%
Total Percentage 100.0 100.0 100.0 100.0 311,135 100.0%

Total Households 239,615 38,115 26,020 18,970 311,135

Median 1996 Income $70,515 $50,325 $65,630 $47,310 $66,085
% HH > $100,000 30.0 14.4 26.1 14.0 27.4%

Table 74: Household Income by Householder's Race or Hispanic Origin

Rural fringes attract the affluent

The greatest changes in incomes since 1986 are found in the rural outreaches of
the County. In the up-County area, Poolesville, at $68,985, is the big gainer, up 12.0
percent, or $7,381 in 1996 constant dollars, followed by Olney, hiking up its income by
$6,082 to reach $86,365 and Damascus, at $82,190, up $6,028 since 1986. The new
large lot developments in these areas are attracting the well-off households both from
within the County and outside its border. The renowned high-income areas of Potomac,
topping the scale at $113,605 (172 percent higher than the County median) and
Bethesda/Chevy Chase at $95,480 (144 percent above the median) saw modest 2 to 4
percent increases. The high-priced housing markets in large-lot Potomac and Olney and
the very desirable Bethesda require household incomes well above the County’s median
to live there.

The older, predominately post World War II housing stock and the high
concentration of rental units make down-County one of the more affordable areas in
Montgomery County and, subsequently, household incomes are below the County’s
median of $66,085. The 1996 median household income for Silver Spring/Takoma Park,
at $48,910, is three-quarters of the County’s median and Kensington/Wheaton, slightly
better off at $55,005, is about 20 percent below the mid-point. Of theses two areas,

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 1997 CUS Summary Report

Silver Spring/Takoma Park -- even though it remains the lowest income area in the
County -- made headway since 1986, gaining $4,614, or 10 percent in real dollars, while
Kensington/Wheaton lost substantial ground, down $4,761, or 8 percent of its adjusted
1986 income. Expect continued good news for the Silver Spring area as the downtown
revitalization comes to fruition and the residential real estate market continues its upturn.
Below median income areas are also found along the I-270 and US 29 traffic corridors,
again coinciding with high rental concentrations (renters typically have roughly half the
household income of owners) and low priced townhouses serving younger, moderate
income first-time homebuyers.

Most areas in the County experienced gains in household incomes except

Colesville, down $8,517 to $62,670, previously mentioned Kensington/Wheaton, and
Rockville/North Bethesda, falling $1,605 to $64,770. Resale housing prices of the 1940s
and 1950s housing stock, concentrated in Kensington/Wheaton and Rockville, have
stagnated since 1986. The older, more affordable housing stock and relatively
inexpensive rental options in these areas attract new in-movers and recent immigrants,
both groups characterized by lower household incomes.

1996 Household Income by Combined Planning Areas

1996 Silver Bethesda/ Rockville/ Kensington/ I-270 Total
Household Income Spring Chevy ChaseN. Bethesda Wheaton CorridorColesvillePotomac Olney Damascus PoolesvilleHouseholdsTotal %
< $5,000 2.2 0.4 1.7 1.4 0.9 0.8 0.4 0.3 0.2 0.8 3,226 1.0%
$5,000- 9,999 2.5 0.4 1.1 1.7 1.3 1.0 0.7 0.2 0.5 1.3 3,787 1.2%
$10,000- 14,999 2.9 0.8 1.7 2.8 1.8 1.5 1.0 1.5 1.2 0.7 5,762 1.9%
$15,000- 19,999 3.9 1.3 3.3 3.3 2.1 1.7 0.9 0.8 1.4 3.4 7,354 2.4%
$20,000- 24,999 6.7 1.9 4.0 5.2 3.0 3.5 1.0 0.7 1.3 1.5 10,869 3.5%
$25,000- 29,999 6.9 1.8 4.4 5.6 4.5 4.0 0.7 2.2 1.4 1.7 12,514 4.0%
$30,000- 34,999 6.0 3.3 5.4 5.4 5.1 5.7 0.9 2.5 3.1 5.8 14,387 4.6%
$35,000- 39,999 7.5 3.1 4.3 5.1 6.2 6.8 2.0 4.1 2.4 2.8 15,487 5.0%
$40,000- 44,999 6.1 3.7 5.5 6.0 6.9 5.5 2.6 3.2 4.0 4.0 16,661 5.4%
$45,000- 49,999 6.8 4.2 3.3 6.5 6.3 4.0 2.8 2.5 3.9 5.8 15,783 5.1%
$50,000- 54,999 6.5 3.8 5.3 6.9 6.9 7.0 2.8 3.0 4.6 6.4 17,956 5.8%
$55,000- 59,999 5.4 4.0 3.8 3.4 4.6 5.9 2.6 3.9 3.7 6.2 12,919 4.2%
$60,000- 64,999 6.4 3.8 6.5 5.5 5.5 5.0 2.8 5.0 6.0 4.8 16,204 5.2%
$65,000- 69,999 2.3 2.9 3.3 3.7 5.3 5.1 2.6 6.4 4.0 5.9 12,245 3.9%
$70,000- 74,999 4.4 4.0 4.8 3.9 4.7 4.9 3.6 3.1 5.6 7.0 13,555 4.4%
$75,000- 79,999 2.1 2.8 4.4 4.3 3.7 3.1 2.8 4.5 4.9 4.5 11,243 3.6%
$80,000- 89,999 3.7 5.1 6.1 5.4 6.9 6.3 4.8 9.5 8.5 8.1 18,434 5.9%
$90,000- 99,999 3.3 5.1 5.2 5.4 5.5 6.3 6.2 11.1 7.5 7.9 17,555 5.6%
$100,000- 119,999 5.6 12.2 8.1 7.5 7.4 8.0 12.9 14.9 13.3 6.7 27,706 8.9%
$120,000- 139,999 3.3 6.0 4.4 4.4 6.2 6.4 11.1 7.4 9.3 6.7 18,414 5.9%
$140,000- 159,999 1.7 6.0 4.5 2.6 2.4 2.5 8.1 5.6 5.6 3.5 11,711 3.8%
$160,000+ 3.8 23.5 839.0 3.9 3.0 5.0 26.7 7.7 7.7 4.4 27,364 8.8%
Total Percentage 100.0 100.0 930.1 100.0 100.0 100.0 100.0 100.0 100.0 100.0 311,135 100.0%

Total Households 27,935 35,655 33,770 65,285 66,515 31,425 25,635 10,235 11,980 2,695 311,135
Median 1996 Income$48,910 $95,480 $64,770 $55,005 $60,375 $62,670 $113,605 $86,365 $82,190 $68,985 $66,085
% HH > $100,000 14.4 47.7 855.9 18.4 19.0 22.0 58.7 35.5 36.0 21.3 27.4%

Table 75: Household Income by Combined Planning Areas

 HOUSEHOLD INCOME

1996 Median Household Income

Montgom ery County, M D

Me di an 19 96 H H In c om e
$2 0,00 0 - 6 7,4 99
$6 7,50 0 - 1 09 ,999
$1 10 ,0 00 - $2 20,00 0 N
N o D a ta

Data Sourc e: 1997 Cens us Upda te Surve y 1 0 1 2 Mi les

Res earc h & T ec hnology C ente r, M -N C PPC

Map 6: 1996 Median Household Income

129