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 |
|---|---|---|---|---|
| 3BR | $3,760 | $693,890 | 0.54% | F |
| 4BR | $4,180 | $992,083 | 0.42% | F |
| 5BR | $4,849 | $1,202,972 | 0.4% | F |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to invest in ZIP 21035 for Section 8 properties hinges on three key factors: the Fair Market Rent (FMR), the relationship between FMR and market rent, and the demand for rental properties.
1. Does FMR of $2910 (for ZIP 21035 in FY 2024) cover the debt service on a $962,539 property?
Yes: The FMR of $2910 is sufficient to cover the debt service if your property's monthly mortgage payment, including taxes and insurance, does not exceed this amount. This suggests that the ZIP code is financially viable for Section 8 tenants.
No: If the monthly debt service exceeds $2910, then the ZIP is not suitable for Section 8 investment. Landlords need to ensure that the FMR can comfortably cover their financial obligations to avoid operating at a loss.
2. Is the market rent of $2,917 (from Census ACS) above, at, or below the FMR?
Above: With the market rent slightly above the FMR, landlords might find it challenging to attract Section 8 tenants unless they offer competitive pricing. However, this also indicates a potential for higher returns if the property is rented to non-Section 8 tenants.
At: Market rent matching the FMR makes ZIP 21035 an attractive location for Section 8 investments, as landlords can set rents to align with the FMR without losing potential tenants.
Below: If market rent were below the FMR, it would be advantageous for landlords looking to secure Section 8 tenants, as they could charge closer to the FMR without deterring potential renters.
3. Are 5.6% of residents renters and N/A days on the market (DOM) indicative of enough demand for rental properties?
It Depends: The percentage of renters at 5.6% is relatively low, suggesting a smaller pool of potential Section 8 tenants. However, the lack of data on days on the market (DOM) makes it difficult to assess how quickly properties are being rented. If DOM is short, it indicates strong demand despite the lower renter percentage. Conversely, if DOM is long, it implies weaker demand, making investment less attractive.
In conclusion, ZIP 21035 is marginally suitable for Section 8 investment based on the current FMR and market rent figures. The decision ultimately depends on the specific financials of the property in question and the actual demand for rentals, which is currently unclear due to missing DOM data. Landlords must carefully consider these factors before proceeding with an investment.
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.