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 | $1,270 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,710 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,730 |
| 5 Bedrooms | $3,167 |
| 6 Bedrooms | $3,547 |
| 7 Bedrooms | $3,831 |
| 8 Bedrooms | $4,023 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,710 | $237,718 | 0.72% | D |
| 3BR | $2,150 | $333,753 | 0.64% | D |
| 4BR | $2,730 | $445,083 | 0.61% | D |
| 5BR | $3,167 | $511,300 | 0.62% | D |
U.S. Census Bureau data (2024)
ZIP code 20653 is located in Lexington Park, MD, a neighborhood characterized by a diverse mix of residents. With a total population of 26,852, it's evident that a significant portion of the community—42.6%—chooses to rent their homes rather than own them. This indicates a substantial demand for rental properties, which is a positive sign for investors looking to enter the market.
The economic profile of the area is robust, with a median household income of $103,048. This figure suggests that the residents have a good financial standing, capable of supporting higher rents and potentially offering stability for landlords. The median home value in the area stands at $386,315, reflecting a strong real estate market where property values are relatively high, providing opportunities for both appreciation and rental income.
Moving into the specifics of rent economics, the Fair Market Rent (FMR) for ZIP code 20653 in fiscal year 2024 is set at $1,730. This closely aligns with the market rent, as indicated by the Zillow Observed Rent Index (ZORI), which is $1,729. This parity between FMR and market rent means that landlords participating in the Section 8 program can expect stable rental income without significant fluctuations from market rates.
In terms of investment strategy, ZIP 20653 offers options for both hands-off operators and hands-on value-add buyers. For those preferring a hands-off approach, the alignment of FMR with market rent ensures that there will be a steady stream of tenants through the Section 8 program, reducing the risk of vacancy and providing predictable cash flows. On the other hand, for investors willing to take a more active role, the potential for property appreciation and the opportunity to enhance rental yields through renovations or improvements present attractive prospects.
Summary:
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.