Location: Baltimore-Columbia-Towson, 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 | $2,160 |
| 1 Bedroom | $2,300 |
| 2 Bedrooms | $2,840 |
| 3 Bedrooms | $3,550 |
| 4 Bedrooms | $3,950 |
| 5 Bedrooms | $4,582 |
| 6 Bedrooms | $5,132 |
| 7 Bedrooms | $5,543 |
| 8 Bedrooms | $5,820 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,840 | $348,345 | 0.82% | C |
| 3BR | $3,550 | $476,795 | 0.74% | D |
| 4BR | $3,950 | $542,635 | 0.73% | D |
| 5BR | $4,582 | $615,366 | 0.74% | D |
U.S. Census Bureau data (2024)
The ZIP code 20724 in Laurel, MD presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern, with the market rent at $2,519 being notably lower than the Fair Market Rent (FMR) of $2,700 for FY 2024. This discrepancy can lead to frequent changes in occupancy, which is costly and time-consuming. Additionally, the average Days on Market (DOM) is 27 days, indicating that properties may remain vacant for extended periods, exposing landlords to financial losses during these times.
The typical home value in the area is $470,276, while the median household income is $118,115. This combination suggests a potential for deferred maintenance issues, as tenants might not have the resources to keep up with property upkeep, leading to higher repair costs for landlords. Furthermore, the disparity between home values and incomes can make it difficult to find tenants who qualify for Section 8 vouchers, potentially limiting the pool of eligible renters.
However, these risks are mitigated by the high renter share in the area, which stands at 39.0%. High renter density typically translates into robust demand for rental housing, including those that accept Section 8 vouchers. This increased demand can help ensure a steady stream of qualified tenants, reducing the likelihood of prolonged vacancies and easing the burden of finding suitable occupants.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.