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 |
U.S. Census Bureau data (2024)
The ZIP code 20628 presents several challenges for landlords considering participation in the Section 8 program. First, the tenant turnover rate could be higher due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $1550 for FY 2024. This difference may lead to tenants seeking more affordable options, increasing the likelihood of frequent turnover.
Second, there is significant exposure to vacancy. The Days on Market (DOM) figure is currently unavailable, but it is crucial for landlords to understand that properties can remain vacant longer than expected, especially if the FMR does not align well with local rental prices. This extended vacancy period can result in lost revenue and increased costs associated with maintaining an unoccupied property.
Third, the risk of deferred maintenance is high. With a typical home value of $495,221 and an unknown median income, landlords must be prepared for the possibility that tenants receiving vouchers might have limited funds for routine maintenance and repairs. This could lead to a backlog of necessary work, which would ultimately fall on the landlord to address.
However, these risks are somewhat mitigated by the high renter share of 17.1%. High renter density typically correlates with higher demand for housing vouchers, which can provide a steady stream of tenants. This demand can help ensure that vacancies are filled promptly and reduce the overall risk of prolonged vacancy periods.
In conclusion, despite the potential issues with tenant turnover, vacancy exposure, and deferred maintenance, the high renter share in ZIP 20628 suggests a moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). 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.