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 | $2,040 |
| 1 Bedroom | $2,070 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,580 |
| 4 Bedrooms | $4,030 |
| 5 Bedrooms | $4,675 |
| 6 Bedrooms | $5,236 |
| 7 Bedrooms | $5,655 |
| 8 Bedrooms | $5,938 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,580 | $547,623 | 0.65% | D |
| 4BR | $4,030 | $666,899 | 0.6% | D |
| 5BR | $4,675 | $819,255 | 0.57% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 20754 hinges on its financial metrics, specifically the Fair Market Rent (FMR) of $2,580 compared to the market rent of $2,782 for fiscal year 2024. With an average home value of $637,476, the yield potential for rental properties is moderate. Landlords can expect to generate slightly below market rents, which translates into a modest cash-on-cash return given the property values.
On the stability axis, ZIP 20754 presents a mixed picture. Only 6.5% of the population are renters, indicating a low demand for rental properties. The lack of data on days on market (DOM) suggests that either the rental turnover is stable or there isn't enough transaction volume to provide meaningful insights. However, the median household income of $167,371 implies a relatively affluent area where tenants might have a higher likelihood of maintaining timely rent payments and causing less wear and tear on properties.
Given these figures, ZIP 20754 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The primary driver for this classification is the low percentage of renters and the high median income, which typically correlate with lower vacancy rates and fewer defaults on rent payments. While the yield is not exceptionally high due to the relatively low FMR compared to the high home values, it offers a stable investment environment for landlords and small-portfolio investors seeking reliable, long-term returns.
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.