Location: Baltimore-Columbia-Towson, MD | Metro: Baltimore-Columbia-Towson, MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,940 |
| 1 Bedroom | $2,070 |
| 2 Bedrooms | $2,560 |
| 3 Bedrooms | $3,200 |
| 4 Bedrooms | $3,560 |
| 5 Bedrooms | $4,130 |
| 6 Bedrooms | $4,626 |
| 7 Bedrooms | $4,996 |
| 8 Bedrooms | $5,246 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 21056 are straightforward and crucial for landlords and small-portfolio investors to understand. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $2520. This figure is significant because it represents the maximum amount that the housing authority will pay for a rental unit in this category.
To break down what a voucher actually pays, you must factor in the tenant's portion of the rent and any utility allowances. Typically, tenants contribute approximately 30% of their adjusted income towards rent. If we assume an average adjusted income of $1500 per month, the tenant would contribute around $450 towards the rent. The remainder of the rent, up to the SAFMR limit, is then covered by the housing voucher program.
In addition to the base rent, there are utility allowances which vary based on the size of the unit and the location. For a two-bedroom apartment, the utility allowance might be around $300. This means that the total reimbursement from the housing authority would be the sum of the base rent payment and the utility allowance.
Given these figures, if the base rent payment is $2520 and the tenant contributes $450, the housing authority would cover the difference, which is $2070. Adding the utility allowance of $300, the total reimbursement would be $2370. This leaves a reimbursement gap of $150, assuming the SAFMR is the cap and not all units can command the full SAFMR rent.
The reimbursement gap or surplus depends on the actual market conditions and the specific rental rates you set. If your rental rate for a two-bedroom unit is exactly $2520, then you would receive $2370 from the housing authority and $450 from the tenant, totaling $2820. However, since the local market rent information is not available, it's important to benchmark against similar properties in the area to ensure you're setting competitive rates without leaving a large gap.
In summary, for ZIP code 21056, landlords should expect a reimbursement of around $2370 for a two-bedroom unit, leading to a potential gap of $150 from the SAFMR. This gap or surplus can be managed by adjusting rental rates according to the local market conditions.
Data Sources: FMR data from HUD (2027). 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.