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 | $1,510 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,610 |
| 5 Bedrooms | $3,028 |
| 6 Bedrooms | $3,391 |
| 7 Bedrooms | $3,662 |
| 8 Bedrooms | $3,845 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,650 | $360,270 | 0.46% | F |
| 3BR | $2,040 | $434,294 | 0.47% | F |
| 4BR | $2,610 | $597,678 | 0.44% | F |
| 5BR | $3,028 | $675,311 | 0.45% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 20636, Hollywood, MD, reveals a balanced market with implications for both short-term pricing power and long-term investment strategies. The median home value stands at $512,309, indicating a stable housing market where property values have not experienced significant fluctuations. This stability is further supported by the observation that only 0.2% of listings have reduced their asking prices, suggesting that sellers are maintaining confidence in the market's ability to support current price levels.
The median days on market (DOM) being listed as N/A suggests that properties are selling quickly, often before reaching a typical DOM measurement. Rapid sales imply strong buyer demand, which can bolster seller pricing power in the near term. Landlords and small-portfolio investors should expect this trend to continue over the next 12-24 months, allowing them to maintain or slightly increase rental rates without losing tenants to homeownership.
On the rental side, the Fair Market Rent (FMR) for ZIP 20636 is set at $1,670 for fiscal year 2024, compared to the current market rate of $1,365 based on Census ACS data. This discrepancy signals an upward pressure on rents, as the government's benchmark for affordable housing exceeds the current average. Investors should anticipate that rental rates will likely align more closely with the FMR over time, providing an opportunity for modest rent increases.
For long-hold investors, the setup points toward a realistic appreciation thesis. With stable home values and increasing rental rates, the potential for capital appreciation exists, especially if broader economic factors such as employment growth and infrastructure development positively impact the area. However, the appreciation is expected to be gradual rather than explosive, reflecting the steady nature of the local real estate market.
In summary, the current data suggests that ZIP 20636 offers a favorable environment for maintaining strong pricing power in both home sales and rentals. The market conditions support the expectation that property values and rental rates will continue to rise, albeit gradually, making it a sound choice for investors looking to hold properties for extended periods.
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.