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 | $1,590 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,090 |
| 3 Bedrooms | $2,610 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,090 | $272,975 | 0.77% | D |
| 3BR | $2,610 | $416,440 | 0.63% | D |
| 4BR | $2,910 | $624,432 | 0.47% | F |
| 5BR | $3,376 | $809,749 | 0.42% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 21050, Forest Hill, MD, within Harford County, can be dissected into several key components to understand the financial implications for landlords. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for FY 2024 is set at $2080. However, the local market rent, according to Census ACS data, is lower at $1,697.
A Section 8 voucher payment consists of two parts: the tenant's contribution and the government subsidy. The tenant's contribution is generally 30% of their income towards rent. For simplicity, let’s assume a tenant with an income that translates to a 30% contribution of $500 towards a two-bedroom rental. This figure would be the tenant's portion of the rent.
The government then covers the difference between the tenant's contribution and the SAFMR. In this case, the government would pay the landlord the remaining amount up to the SAFMR. Thus, if the tenant contributes $500, the government would reimburse the landlord the difference between the SAFMR and the tenant's contribution, which is $2080 - $500 = $1580.
In addition to the base rent, Section 8 also provides utility allowances. These allowances vary but typically cover a significant portion of utilities. For a two-bedroom unit, the utility allowance might average around $300 per month, depending on the specifics of the voucher and the utility costs in the area.
This means that in total, the landlord could expect to receive approximately $1580 for rent plus $300 for utilities, totaling $1880 per month. This is a combination of the tenant's direct contribution and the government subsidy.
Given that the local market rent is $1,697, a landlord participating in the Section 8 program in ZIP 21050 would find themselves in a position where the government subsidy plus tenant contribution exceeds the local market rent. This results in a surplus for the landlord of $1880 - $1697 = $183 per month, assuming the landlord charges the market rate.
The typical reimbursement gap or surplus for a two-bedroom voucher in this ZIP code is thus a surplus of $183 per month, making participation in the Section 8 program financially viable for landlords who want to ensure stable occupancy and a steady income stream.
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.