Location: St. Mary's County, MD | Metro: St. Mary's County, MD HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,530 |
| 1 Bedroom | $1,890 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,580 |
| 4 Bedrooms | $3,290 |
| 5 Bedrooms | $3,816 |
| 6 Bedrooms | $4,274 |
| 7 Bedrooms | $4,616 |
| 8 Bedrooms | $4,847 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,060 | $259,359 | 0.79% | D |
| 3BR | $2,580 | $380,649 | 0.68% | D |
| 4BR | $3,290 | $483,056 | 0.68% | D |
| 5BR | $3,816 | $587,366 | 0.65% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 20619 in California, MD, provides a clear picture of the potential returns for landlords and small-portfolio investors. Using the Fair Market Rent (FMR) for a two-bedroom apartment at $1940 per month, the annualized income would be $23,280. Against the median home value of $393,279, this translates into an implied gross yield of approximately 5.92%. For comparison, using the Zillow Observed Rent Index (ZORI) of $2,389 per month, the annualized market rent would be $28,668, resulting in an implied gross yield of around 7.29%.
The higher gross yield based on ZORI suggests that market rents could offer better returns for landlords in ZIP 20619. However, considering the 35.5% renter density and an 8-day days-on-market (DOM), it's important to note that the actual performance of Section 8 properties might differ. The lower DOM indicates a quick rental process, which is favorable for minimizing vacancy periods. Yet, the relatively low renter density implies a smaller pool of potential tenants, which could affect the demand for Section 8 properties.
In conclusion, while the market rent scenario presents a more attractive gross yield, the reality of operating in ZIP 20619 requires careful consideration of the local rental market dynamics. Landlords should weigh the benefits of higher yields against the challenges posed by lower tenant density and the specific terms and conditions of Section 8 participation.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.