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 | $1,350 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,780 | $148,009 | 1.2% | A |
| 3BR | $2,230 | $271,362 | 0.82% | C |
| 4BR | $2,470 | $326,101 | 0.76% | D |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord investing in ZIP code 21040 in Edgewood, MD, must be carefully considered. Tenant turnover is a significant concern, especially when comparing the market rent of $1,683 to the Fair Market Rent (FMR) of $1,820 for FY 2024. The difference indicates that landlords might struggle to find tenants willing to pay the higher FMR, leading to increased turnover rates. Vacancy exposure is another issue, as the days on market (DOM) data is currently unavailable, making it difficult to predict how long properties might remain vacant. This uncertainty can lead to financial strain during periods of non-rent collection. Deferred maintenance poses an additional challenge, given the typical home value of $264,033 and a median income of $81,704. Lower incomes may limit residents' ability to cover costs for property upkeep beyond basic rent, increasing the likelihood of deferred maintenance issues.
However, these risks are mitigated by the high renter density in the area, with 28.9% of the population being renters. High renter density typically correlates with greater demand for rental housing, including those who rely on Section 8 vouchers. This suggests that there will likely be a steady pool of qualified tenants seeking affordable housing options, which can help stabilize occupancy rates and reduce the impact of vacancy exposure.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.