Location: Calvert County, MD | Metro: Baltimore-Columbia-Towson, MD MSA
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 | $1,610 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,790 |
| 4 Bedrooms | $3,140 |
| 5 Bedrooms | $3,642 |
| 6 Bedrooms | $4,079 |
| 7 Bedrooms | $4,405 |
| 8 Bedrooms | $4,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,070 | $352,369 | 0.59% | F |
| 3BR | $2,790 | $419,484 | 0.67% | D |
| 4BR | $3,140 | $500,847 | 0.63% | D |
U.S. Census Bureau data (2024)
ZIP 20714, located in North Beach, MD, within the Calvert County, MD HUD Metro FMR Area, serves as a cash-flow anchor in a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the area in fiscal year 2024 is set at $2080, which exceeds the market rent of $1889. This positive spread ensures that landlords receive higher rental income through Section 8 vouchers compared to market rates, making it a reliable source of cash flow.
The median home value in ZIP 20714 stands at $414,572. While this figure might suggest an opportunity for appreciation, the lack of data on price-cut shares and days on market (DOM) indicates that there isn't enough evidence to support this ZIP code as an appreciation play. Therefore, focusing on cash flow rather than property value growth is more prudent.
ZIP 20714 also has a 24.0% renter share, indicating a moderate demand for rental properties. The median income of $91,099 suggests that residents have stable financial standing, reducing the risk of default on rental payments. However, this characteristic alone does not make the ZIP code a primary diversifier in a Section 8 portfolio, given the significant cash-flow benefits it offers.
In summary, ZIP 20714 should be considered a cash-flow anchor due to the favorable spread between the FMR and market rent, ensuring landlords receive above-market rates and a steady income stream. This strategic positioning provides a solid foundation for a Section 8 investment portfolio, particularly for those prioritizing consistent rental income over potential property appreciation.
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.