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 | $1,460 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,570 |
| 5 Bedrooms | $2,981 |
| 6 Bedrooms | $3,339 |
| 7 Bedrooms | $3,606 |
| 8 Bedrooms | $3,786 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,270 | $405,961 | 0.56% | F |
| 4BR | $2,570 | $538,031 | 0.48% | F |
| 5BR | $2,981 | $623,441 | 0.48% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 20685 hinges on a careful analysis of its yield and stability metrics. Yield is assessed through the comparison between the Fair Market Rent (FMR) set at $1,900 for fiscal year 2024, the market rent of $1,906, and the median home value of $457,729. Stability is gauged by the percentage of renters at 5.2%, the lack of data on days on market (DOM), and the average household income of $119,135.
In terms of yield, the FMR and market rent are nearly identical, indicating that the rental market is closely aligned with HUD's estimates. This suggests that the area does not offer exceptionally high yields compared to the cost of investment, given the median home value. The modest difference between the FMR and market rent ($6) implies that the rental income will be relatively stable and predictable, without significant upside potential.
The stability metric shows a low percentage of renters in the area, which could imply lower demand for rentals. However, the absence of DOM data means we cannot conclusively determine how quickly properties are rented out. The average household income of $119,135 is substantial and indicates that residents have the financial capability to pay higher rents, which can contribute to stability in the rental market.
Given these factors, ZIP 20685 leans towards being a steady-cashflow zone. The yield is moderate, and while the rental market is not particularly volatile, the low percentage of renters suggests limited growth potential. The high median income provides some assurance regarding tenant reliability and ability to meet rental obligations, thus supporting the steady-cashflow classification.
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.