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 | $1,540 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,510 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,510 | $476,772 | 0.53% | F |
| 4BR | $2,830 | $573,961 | 0.49% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP code 20676 might have several concerns regarding the feasibility of renting out properties under the Section 8 program. Here are some common objections and how the data addresses them.
Objection 1: Will Fair Market Rent (FMR) of $2130 for the fiscal year 2024 be sufficient to cover the mortgage on a $505,899 home?
The FMR of $2130 does not directly correlate to the mortgage coverage for a $505,899 home. The mortgage payment depends on various factors including interest rates, loan terms, and down payments. However, it's important to note that the FMR is set to ensure that rental units are affordable for low-income families, and it is typically higher than the average voucher payment. To determine if the FMR can cover a mortgage, an investor should calculate their expected monthly mortgage costs and compare them to the FMR. If the mortgage is too high, it could mean that the property is overpriced for the local rental market or that the investor is taking on excessive financial risk.
Objection 2: Is there enough renter demand at 12.9%?
The 12.9% figure represents the percentage of households receiving housing assistance through vouchers or other forms of aid. This indicates a moderate level of demand for subsidized housing. However, it's crucial to consider the total number of households in the area and the vacancy rate to gauge the overall rental market health. A higher percentage of assisted households suggests a larger pool of potential tenants, but it also implies competition among landlords for these tenants. To fully assess demand, one must look at the number of available rental units and the number of households seeking assistance. This data helps to understand whether there are enough units to meet the needs of all households or if there is a shortage, which could impact occupancy rates.
Objection 3: Will vouchers keep pace with market rents of $1,766?
The market rent of $1,766 is the average amount paid for a rental unit in ZIP code 20676. Vouchers are designed to cover a significant portion of the rent, but they do not always fully match the market rent. In many cases, landlords must accept a lower payment than the market rent to participate in the Section 8 program. However, the government periodically adjusts voucher amounts to reflect changes in the cost of living and market conditions. While there is no guarantee that vouchers will always match market rents, the adjustments aim to keep the difference manageable. It's important for landlords to review the current voucher payment guidelines and understand the potential for future adjustments.
These points provide a balanced view based on the available data, highlighting both the opportunities and challenges associated with investing in ZIP code 20676 under the Section 8 program. Investors should conduct thorough research and consult with local real estate experts to make informed decisions.
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.