Location: Calvert County, MD | Metro: Calvert 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 | $1,410 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,790 | $307,558 | 0.58% | F |
| 3BR | $2,480 | $363,224 | 0.68% | D |
| 4BR | $2,800 | $412,749 | 0.68% | D |
| 5BR | $3,248 | $461,761 | 0.7% | D |
U.S. Census Bureau data (2024)
ZIP 20657, located in Lusby, MD, within the Calvert County, MD HUD Metro FMR Area, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the area in fiscal year 2024 is set at $1690, significantly below the market average rent of $2063. This creates a spread of $373 per unit, which can be leveraged to ensure consistent positive cash flow.
The median home value in ZIP 20657 stands at $375,541. While this figure is relatively high, it does not necessarily impact the cash-flow anchor status of the area. The primary focus here is on rental income, where the lower FMR compared to the market rent provides a reliable cushion for landlords participating in the Section 8 program.
To further support the cash-flow anchor classification, consider the following:
The 0.2% price-cut share indicates that there is minimal need to reduce rental prices to attract tenants, thereby maintaining higher rents and ensuring steady cash flow.
A 25-day Days on Market (DOM) suggests a strong demand for rentals in the area, reducing the risk of vacancy and ensuring quick tenancy turnover.
The 12.8% renter share and median income of $115,748 imply a stable tenant population with the financial means to pay their rent consistently, reducing the likelihood of default or non-payment.
In conclusion, ZIP 20657's alignment with the cash-flow anchor role is evident through its favorable spread between FMR and market rent, low necessity for price cuts, quick market absorption, and financially stable tenant base. These factors make it an ideal addition to a Section 8 portfolio for landlords and small-portfolio investors seeking reliable cash flow.
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.