The former Lakeforest Mall site is open ground now. The mall closed on March 31, 2023. Demolition started April 1, 2026 and was finished by June, according to The MoCo Show. That cleared the 102-acre property for a $1.2 billion redevelopment led by WRS Inc. The plan allows up to 1,600 homes. National builder NVR has a contract to buy the land for the for-sale housing and plans to bring its Ryan Homes and NVHomes brands.
Most coverage of the site mentions "gap housing," a term that sounds like a price promise. It isn't one. Under Gaithersburg's own planning documents, gap housing is a rule about what the buildings look like. The homes with controlled prices come through a separate city program with its own income bands, buyer requirements and resale limits. For a buyer, the difference decides whether Lakeforest is a market-rate purchase or a lottery entry.
The plan defines gap housing by building type, not price
The Lakeforest Mall Master Plan, adopted August 16, 2021, defines the term this way:
"Residential units that are intended to bridge the architectural and price point gap between higher-priced single family (detached and townhouse) units and rental-focused multifamily units."
Every trait the plan lists after that is physical: generally two to four units per building, unit sizes between a typical apartment and a typical townhouse, buildings scaled to sit next to townhouses and detached homes, and either shared or assigned parking. The plan gives no income limit and no price ceiling. It also states plainly that its "affordability" goal means "offering market rate housing at a variety of price points," which is "not to be confused with regulatory 'affordable housing.'"
The requirement has teeth. The plan sets gap housing at at least 25% of the residential mix and caps townhouses at up to 10%. It also says traditional detached homes on individual lots are not appropriate for the site. So most for-sale buyers at Lakeforest will be choosing among denser home types than Gaithersburg usually builds.
NVR spelled out those types in a January 2026 letter, as The MoCo Show reported:
- Four-story stacked "2-over-2" condominiums, with one home on the lower two floors and another on the upper two
- Four-story back-to-back condominiums, with one home along the front four floors and another along the rear four
- Three-story duplexes, two homes side by side
The letter estimated that the revised designs would cut 16 units and move the gap housing share from 28.4% to 27.7%, still above the 25% minimum. The City's project page now lists that design confirmation, SP-10278-2026, as approved.
Two of those three types are condominiums. Under the plan's own definition, a condominium owner holds the unit, while a unit owners association owns the common elements, and the homes don't sit on individually owned lots. Unless a unit is also one of the set-aside homes, a gap housing buyer gets that ownership structure at a market price.
The price-controlled homes come from a different rule
Gaithersburg's regulated affordable homes come from the City's Affordable Housing Ordinance, and the Master Plan summarizes it. Any new construction or redevelopment with 20 or more units must set aside at least 15% of them as affordable to households below set incomes. For for-sale homes, that 15% is split evenly. 7.5% are Moderately Priced Dwelling Units, or MPDUs, and 7.5% are Workforce Housing Units, or WFHUs. For rentals, the full 15% must be MPDUs.
So a 2-over-2 condo at Lakeforest is gap housing because of its design. It becomes a price-controlled home only if it is also one of the set-aside units. The two labels can overlap on the same building, but they come from different rules, and only one of them limits the price.
Here is how the two tracks compare, drawn from the Master Plan and the City's Affordable Housing Purchase Program page:
| Gap housing | MPDU / WFHU for-sale units | |
|---|---|---|
| Source of the rule | Lakeforest Mall Master Plan | City Affordable Housing Ordinance |
| What it controls | Building type and mix | Price, buyer eligibility, resale |
| Minimum share | At least 25% of the residential mix | 15% of units, split 7.5% / 7.5% |
| Income test | None | MPDU 50% to 80% of AMI; WFHU up to 120% |
| Who can buy | Any buyer | First-time buyers with a Certificate of Eligibility |
| Price limit | None from this rule | Controlled price during the control period |
What the regulated track asks of a buyer
The City's program is open only to first-time buyers. The applicant and every household member must not own a home now and must not have owned one anywhere in the past three years. Applicants must complete a First-Time Homebuyer Counseling Class. MPDU applicants also attend an MPDU Orientation Seminar offered by Montgomery County and the Greater Washington Urban League. The City also requires a mortgage prequalification of at least $150,000.
Household income has to fall within these bands, which the City currently posts on its page:
| Household size | MPDU income range | WFHU income limit |
|---|---|---|
| 1 | $58,135 to $93,016 | Up to $139,524 |
| 2 | $66,440 to $106,304 | Up to $159,456 |
| 3 | $74,745 to $119,592 | Up to $179,388 |
| 4 | $83,050 to $132,880 | Up to $199,320 |
The City's page lists limits for households of up to eight people and notes that the figures change each year, usually by July 1. For a four-person household, the WFHU limit reaches $199,320.
Qualifying doesn't hand you a specific home. Eligible applicants receive a Certificate of Eligibility. When a unit becomes available, only certificate holders can enter the drawing, and they must also meet that home's requirements, including a mortgage preapproval at or above the sale price and the bedroom and household-size rules.
The lower price comes with conditions after closing. During the control period, the owner must live in the home as a primary residence. The owner can sell only at the City-set controlled price through the City's process, can't refinance above that controlled value, and can't buy another residential property. Once the control period ends, the owner can sell at market price, but the City says any excess profit is payable to the City. For affordable units in developments whose Schematic Development Plan was approved after July 1, 2026, the control period is 30 years from the first sale.
These rules are summarized here for general information only and are not legal, tax or financial advice. Confirm your own eligibility and obligations with the City of Gaithersburg and a qualified lender or attorney.
Where the site stands in November 2026
The order of approvals shows how far the for-sale homes are from a sales office:
- July 15: the Planning Commission approved SP-10031-2025, the Phase 1 storm drain and stormwater pond work.
- By the City's October 7 status update: SP-10084-2025, the Phase 2 network of Street One, Street Two and Lakeforest Boulevard, and SP-10278-2026, the gap-unit designs, are both listed as approved.
- Under review, with no public hearing scheduled yet: SP-10415-2026 for 598 single-family units on Blocks G through I and K through P, and SP-10440-2026 for a mixed-use building on Block E with 250 apartments over 47,477 square feet of ground-floor retail.
Comments on the pending applications go to [email protected] or by mail to 31 South Summit Avenue.
The commercial side is moving on its own schedule. Confirmed tenants include a 140,000-square-foot Home Depot, a 23,000-square-foot Sprouts Farmers Market and a 15,000-square-foot Landmark Theatre, and the Sprouts and Landmark will each be only the second in Montgomery County. Building the first retail will unlock about 850 rental apartments above parts of Phase 1. A relocated Lakeforest Transit Center will connect to Ride On buses and the future MD 355 Flash Bus Rapid Transit line. According to The MoCo Show, citing the Washington Business Journal, WRS is also courting Greater Washington restaurant chains and plans a bookstore and a brewery.
What market-rate means right now
The gap housing rule sets no price cap, so a market-rate Lakeforest home will compete with whatever resale homes are for sale when it launches. Today that resale market gives buyers more choice than it did a year ago. In September 2026, Montgomery County had 2,447 active listings, up from 1,923 in September 2025, according to the Greater Capital Area Association of REALTORS. That is about 27% more inventory. In the same month, the county's median sold price was $610,000, up 1.8% year over year. Homes averaged 34 days on market and sold for an average of 97.3% of their original list price. Across the wider Washington metro, Bright MLS reported that new pending sales fell 17.1% in September 2026.
These figures cover the whole county, not just Gaithersburg. They still show the trade-off a Lakeforest buyer faces. Gap housing is aimed at a price point, but the market sets the price. Buyers who want a lower price than the market offers have to qualify for, and win, a set-aside unit. Everyone else is weighing a future 2-over-2 or duplex against the resale homes for sale today, in a county where those homes are staying on the market longer than the headline numbers suggest.
Quick answers
Does a gap housing home at Lakeforest come with an income limit? No. The Master Plan defines gap housing by building type and intended price position, and it separates that goal from regulated affordable housing.
Do I have to live in Gaithersburg to apply for an MPDU or WFHU? City residency isn't generally required. The City gives priority status to qualifying applicants who have lived or worked in Gaithersburg for at least one year in certain listed categories.
Which builder brands are planned for the for-sale homes? NVR has said it plans to bring Ryan Homes and NVHomes to the site.
If you're deciding between waiting for Lakeforest and buying a resale home in Gaithersburg now, The Agency DC can put current neighborhood data next to what's planned for the mall site. Our team can also help you see how a stacked condo, back-to-back or duplex is likely to compare with the homes already on the market. When you're ready to sell the home you have now, we'll Launch Your Home with the same preparation.
