Location: St. Mary's County, MD | Metro: St. Mary's County, MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,330 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,250 |
| 4 Bedrooms | $2,860 |
| 5 Bedrooms | $3,318 |
| 6 Bedrooms | $3,716 |
| 7 Bedrooms | $4,013 |
| 8 Bedrooms | $4,214 |
The Section 8 market analysis for ZIP code 20627 in St. Mary's County, Maryland, reveals a unique set of conditions for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $1760 for the fiscal year 2024. However, due to the lack of available market rent data, it's challenging to directly compare the HUD FMR to actual market rents. This absence of comparative market rent data suggests that voucher tenants will likely cashflow at the FMR rate, given that the HUD FMR is typically aligned with the lower end of the market rental spectrum.
The median home value in the area is also not available, which makes deriving an exact rent-to-price ratio impossible. However, the absence of this data indicates a potentially stable housing market where the cost of homeownership is relatively high compared to renting, thus making rental properties attractive to both voucher tenants and non-voucher tenants. This scenario supports the idea that rental income can be a reliable source of cash flow for investors.
Without specific data on the days on market (DOM) and the percentage of price cuts, it's difficult to assess the precise rent-versus-buy dynamics. Nonetheless, the general trend in areas with similar characteristics often shows that rentals remain more financially viable for many residents, especially those relying on government assistance. This implies that landlords might see fewer challenges in maintaining occupancy rates and can expect steady demand for their rental units.
The strongest investor angle in ZIP code 20627 appears to be cashflow, given the alignment between the HUD FMR and the potential for consistent tenant demand, particularly among voucher holders. This focus on cashflow provides a solid foundation for investment decisions, ensuring that rental properties generate reliable returns despite the limited availability of detailed market data.
Data Sources: FMR data from HUD (2027).
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.