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 | $1,260 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,680 |
| 5 Bedrooms | $3,109 |
| 6 Bedrooms | $3,482 |
| 7 Bedrooms | $3,761 |
| 8 Bedrooms | $3,949 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,680 | $233,839 | 0.72% | D |
| 3BR | $2,110 | $330,331 | 0.64% | D |
| 4BR | $2,680 | $442,523 | 0.61% | D |
U.S. Census Bureau data (2024)
Great Mills, MD, in ZIP code 20634, is a suburban neighborhood with a total population of 7,088 residents. The area has a relatively low percentage of renters at 34.6%, indicating a predominantly owner-occupied community. However, those who do rent can expect a high standard of living, as evidenced by the median household income of $139,375 and median home value of $366,080. These figures suggest an affluent environment where property values are strong and residents have significant disposable income.
The rent economics in ZIP 20634 are particularly interesting for investors. According to the Fair Market Rent (FMR) set by the Department of Housing and Urban Development (HUD), the FMR for the area in fiscal year 2024 is $1,690. This is notably lower than the market rent, which stands at $2,190 according to Zillow's ZORI index. This discrepancy presents an opportunity for investors to participate in the Section 8 program while still maintaining a profit margin through higher market rents.
Given the data, ZIP 20634 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stable demand for affordable housing and the HUD-set FMR provide a predictable revenue stream without the need for extensive property management. Meanwhile, hands-on value-add buyers could leverage the gap between FMR and market rents to renovate properties and attract tenants willing to pay above the voucher rate, thereby increasing their investment returns. The high median income and home values also indicate a robust local economy, which can support property improvements and tenant stability.
In conclusion, ZIP 20634 offers a blend of affordability and prosperity that makes it an attractive location for Section 8 investors. Whether seeking a passive income source or looking to actively manage and improve properties, the economic conditions and demographics present a favorable investment climate.
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.