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 | $1,400 |
| 1 Bedroom | $1,740 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,370 |
| 4 Bedrooms | $3,020 |
| 5 Bedrooms | $3,503 |
| 6 Bedrooms | $3,923 |
| 7 Bedrooms | $4,237 |
| 8 Bedrooms | $4,449 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,890 | $332,532 | 0.57% | F |
| 3BR | $2,370 | $447,575 | 0.53% | F |
| 4BR | $3,020 | $583,998 | 0.52% | F |
| 5BR | $3,503 | $663,928 | 0.53% | F |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 20650, centered around Leonardtown, MD, reveals a notable gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, as set for fiscal year 2024, is $1580, while the Census American Community Survey (ACS) indicates a market rent of $1671. This discrepancy amounts to a $91 difference, representing approximately a 5.75% gap between the two figures.
In the context of Leonardtown, where 21.3% of residents are renters, the median home value stands at $526,539, and the median household income is $143,116, the implications of this gap become clearer. When the FMR is less than the market rent, landlords who accept Section 8 vouchers must be prepared to house tenants at rates that are below the open-market levels. This scenario can potentially reduce profit margins, especially given the relatively high median home value and income levels in the area.
However, the lower FMR does not necessarily mean a loss for landlords. It can still represent a yield play, particularly for those with properties that would otherwise struggle to find tenants willing to pay market rent. By accepting Section 8 vouchers, landlords ensure steady, government-backed rental income, which can be a reliable source of cash flow. Moreover, the financial stability provided by voucher tenants can offset the risk associated with finding and retaining other types of tenants who might not have such consistent income.
Landlords and small-portfolio investors should consider these factors when deciding whether to participate in the Section 8 program. While the $91 discount per month might seem significant, the long-term benefits of stable occupancy and government-subsidized payments can outweigh the short-term reduction in rent. In Leonardtown's real estate market, where competition for tenants can be fierce, the Section 8 program offers a viable option for maintaining property occupancy and securing regular rental income.
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.