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 | $2,290 |
| 1 Bedroom | $2,440 |
| 2 Bedrooms | $3,010 |
| 3 Bedrooms | $3,760 |
| 4 Bedrooms | $4,180 |
| 5 Bedrooms | $4,849 |
| 6 Bedrooms | $5,431 |
| 7 Bedrooms | $5,865 |
| 8 Bedrooms | $6,158 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,010 | $424,944 | 0.71% | D |
| 3BR | $3,760 | $548,363 | 0.69% | D |
| 4BR | $4,180 | $789,706 | 0.53% | F |
| 5BR | $4,849 | $1,267,072 | 0.38% | F |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 21032, located in Crownsville, MD, within Anne Arundel County and part of the Baltimore-Columbia-Towson, MD MSA, offers a detailed look into rental dynamics and investment opportunities. The Fair Market Rent (FMR) as determined by HUD for this area is set at $2,440 for the fiscal year 2024. In contrast, the market rent, represented by the Zillow Observed Rental Index (ZORI), stands at $2,648. This indicates that landlords can expect marginal cash flow from voucher tenants when renting units at the FMR rate.
To further analyze the investment potential, consider the median home value in the area, which is $669,397. Using this figure, we can calculate the rent-to-price ratio, which comes out to approximately 0.4%. This ratio suggests that the rental market is slightly less attractive compared to the purchase market, given the higher median home values relative to rents.
The lack of data regarding the median Days on Market (DOM) and the percentage of homes that require price cuts to sell (0.1%) implies that the buy versus rent decision is heavily influenced by the local real estate market conditions. However, these factors do not significantly impact the cash flow from Section 8 rentals since they are primarily concerned with the rental rates and not the sale of properties.
The strongest angle for investors in this market is likely to be stability. Given the consistent demand for affordable housing and the government-backed nature of Section 8 vouchers, landlords can expect steady income with minimal risk of vacancy. Additionally, the slight discrepancy between the FMR and market rent provides a buffer for landlords to maintain positive cash flow while still offering competitive rental options to voucher holders.
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.