Location: St. Mary's County, MD | Metro: St. Mary's County, MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,350 |
| 1 Bedroom | $1,670 |
| 2 Bedrooms | $1,820 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,640 for ZIP 20690 in fiscal year 2024 will sufficiently cover the mortgage on a $520,537 home. To address this concern, we need to consider current mortgage rates. According to recent data from Bank of America, mortgage rates can vary widely depending on the type of mortgage and the amount borrowed. However, even with conservative estimates, a mortgage on a home valued at $520,537 could be manageable with an FMR of $1,640. For instance, a 30-year fixed-rate mortgage at 5% would result in monthly payments around $2,700, which is higher than the FMR but feasible if the property has multiple units or if the investor can secure a lower rate.
The rental vacancy rate stands at 24.7%, raising questions about whether there is sufficient demand among renters. This figure suggests a relatively high vacancy rate, indicating potential challenges in filling units. However, it's important to note that the rental market in ZIP 20690 appears to be robust for two-bedroom properties, typically renting between $750 and $999 per month. This indicates that while competition for tenants might exist, there is still a significant pool of potential renters willing to pay market rates.
Another objection concerns whether Section 8 vouchers will keep pace with market rents, currently estimated at $1,412. While the data does not provide a direct comparison of voucher amounts versus market rents, historical trends show that voucher values generally increase over time, though not always at the same rate as market rents. Given the FMR of $1,640, landlords accepting Section 8 vouchers should expect a reasonable rental income, although they may need to adjust their expectations slightly if market rents rise faster than voucher allocations.
In summary, while the data presents some challenges, particularly with the high vacancy rate and the need to ensure that mortgage payments are covered, the overall rental market in ZIP 20690 remains viable for investors. The FMR provides a solid baseline for rental income, and Section 8 vouchers offer a reliable source of tenants willing to pay a significant portion of market rates.
Data Sources: FMR data from HUD (2027). 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.