Summary answer: Whether to sell or keep an Alexandria rental comes down to three numbers: what you would net after selling costs and taxes, what the property earns after all expenses, and what you could earn on the proceeds elsewhere. Redfin reported an August 2026 citywide median price of $736,450, up 11.2%, so equity is high, but the Freddie Mac 30-year rate was 7.28% on October 1, 2026, which makes buying a replacement property expensive. There is no universal answer, so I run both scenarios on paper.
I'm Johnny with JQ Real Estate. Here is the framework I use with Alexandria landlords.
Compare the two paths
| Factor | Keep | Sell |
|---|---|---|
| Income | Monthly rent after expenses | Proceeds you can invest or use elsewhere |
| Appreciation | Continues to benefit you; the FHFA index for Alexandria rose about 4.3% a year from 2020 to 2025, but only 1.0% in 2025 | You stop participating |
| Taxes | Depreciation continues to reduce taxable income | Gain and depreciation recapture are taxed; a 1031 exchange can defer them |
| Effort | Tenants, repairs, inspections | Done after closing |
| Risk | Vacancy, repairs, rule changes | Market timing on the sale |
Step one: calculate net rent
Take annual rent and subtract the mortgage interest, real estate tax, insurance, repairs, vacancy, management, and association dues. Alexandria's tax rate is $1.135 per $100 of assessed value, so on a $700,000 assessment the annual bill is about $7,945. Do not forget the larger repair items such as roofs and HVAC systems, which show up irregularly but are real costs.
Step two: calculate net sale proceeds
Start with a realistic sale price from recent comps, subtract the mortgage payoff and selling costs, then subtract taxes. The federal home-sale exclusion of $250,000, or $500,000 for joint filers, requires that you owned and lived in the home two of the last five years, so a long-term rental usually does not qualify. Depreciation you claimed is generally taxed when you sell. A CPA should confirm your numbers before you list, since the rules can change.
Step three: look at the property type
ALXnow, using MarketStats data, reported June 2026 average prices of $1,404,691 for detached homes, $719,732 for attached homes, and $468,466 for condos, down 2.7%, 0.5%, and 6.2% respectively. The June 24, 2026 NVAR and George Mason University forecast projected condo inventory up 31.0%. A condo landlord who wants to sell faces more competition than a townhouse owner, which can push a decision toward selling sooner or toward holding longer.
Step four: check the local rules
- Alexandria's Residential Rental Inspections program applies in designated districts, with a Certificate of Compliance valid for four years and $100 for each extra unit inspected.
- Short-term rentals need a permit if rented more than 10 days per calendar year for stays under 30 consecutive days. The fee is $100 owner-occupied or $350 owner-unoccupied.
- Pre-1978 homes need federal lead-paint disclosures.
Signs that selling makes sense
- Net rent after all costs is low compared with your equity.
- You face a large repair bill, or the rental inspection or permit rules add cost.
- You want to redeploy the equity into something with a better return.
- Management is wearing you out.
Signs that keeping makes sense
- Your mortgage rate is well below today's 7.28%, so refinancing or replacing it would be costly.
- The property is cash-flow positive and in good condition.
- The tax cost of selling is high and a 1031 exchange does not fit.
Do not forget the cost of getting back in
If you sell and later want another rental, you will buy at today's rates. Freddie Mac's 30-year average was 7.28% on October 1, 2026, compared with 6.34% a year earlier, and it was the highest level since November 2023. A landlord holding a loan well below that rate has an asset that is hard to replace. A landlord with an adjustable loan, a balloon coming due, or a property needing major repairs is in a different position. Put the replacement cost in your comparison, not only the sale proceeds.
An example
Suppose a townhouse is worth $736,000 and carries a $350,000 loan. Applying a labeled assumption of 7% for selling costs, about $51,500, leaves roughly $334,500 before taxes. If the property nets $1,000 a month after all costs, that is $12,000 a year, or about 3.6% on the pre-tax proceeds. If the proceeds could earn more elsewhere, even after tax, selling may win. If rents are rising and the loan rate is low, holding may win.
Next step
Reach out with the address, rent, and loan details. I will price the home, build the net sheet, and coordinate with your CPA so you can see both paths side by side.
For more Alexandria buyer and seller questions, visit our Alexandria real estate hub.