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 | $1,370 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,430 |
| 4 Bedrooms | $2,750 |
| 5 Bedrooms | $3,190 |
| 6 Bedrooms | $3,573 |
| 7 Bedrooms | $3,859 |
| 8 Bedrooms | $4,052 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 4BR | $2,750 | $665,069 | 0.41% | F |
U.S. Census Bureau data (2024)
The ZIP code 20689 is situated in a high-end residential area characterized by its affluent population and low rental occupancy rate. With only 7.0% of residents being renters, it's predominantly a homeowners' community. The total population of 1,809 residents reflects a small, tightly-knit neighborhood where the median household income stands at a robust $161,833. This financial stability is mirrored in the median home value, which is significantly high at $582,458.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 20689 in fiscal year 2024 is set at $1,680. Given the absence of specific market rent data, we can infer that the rental market here is niche and likely commands premiums above the FMR due to the scarcity of rental properties and the overall wealth of the area.
For a Section 8 investor, ZIP 20689 presents a challenging environment. The limited number of renters suggests a smaller pool of potential tenants, which might make it difficult for a hands-off voucher operator to find enough qualified applicants to fill their units. On the other hand, a hands-on value-add buyer could potentially capitalize on the high property values and income levels by converting modestly priced homes into luxury rentals that cater to the local demand for high-quality living spaces.
In conclusion, ZIP 20689 is better suited for an active investor who is willing to renovate and manage properties to attract higher-paying tenants rather than relying solely on government vouchers. The high median income and home values indicate a strong local economy, but the low rental occupancy rate necessitates a strategic approach to finding and retaining tenants.
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.