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 | $1,570 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,590 |
| 4 Bedrooms | $2,880 |
| 5 Bedrooms | $3,341 |
| 6 Bedrooms | $3,742 |
| 7 Bedrooms | $4,041 |
| 8 Bedrooms | $4,243 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,070 | $285,576 | 0.72% | D |
| 3BR | $2,590 | $446,246 | 0.58% | F |
| 4BR | $2,880 | $474,501 | 0.61% | D |
| 5BR | $3,341 | $547,109 | 0.61% | D |
U.S. Census Bureau data (2024)
In analyzing the real estate market for ZIP 21060 (Glen Burnie, MD), several critical questions arise that any prudent investor must consider. Let's delve into these concerns and address them using the available data.
Will FMR $1960 (zip FY 2024) cover the mortgage on a $416,281 home?
The Fair Market Rent (FMR) for ZIP 21060 in fiscal year 2024 is set at $1960 per month. To determine if this will sufficiently cover the mortgage on a $416,281 home, we need to calculate the expected monthly mortgage payment. Assuming a standard 30-year fixed-rate mortgage with an interest rate of 4%, the monthly mortgage payment would be approximately $2000. This means that the FMR is slightly below what would be required to cover the mortgage payment, indicating a potential shortfall for landlords relying solely on Section 8 tenants.
Is there enough renter demand at 22.6%?
The percentage of renters in Glen Burnie is 22.6%. While this figure suggests a moderate level of rental demand, it does not provide a complete picture. The actual number of renters and the vacancy rates are crucial metrics. With only 22.6% of the population renting, competition among landlords can be fierce, especially when considering the limited supply of rental properties. However, the demand for affordable housing remains robust, which could balance out the competition.
Will vouchers keep pace with $1,947 market rents?
The average market rent in Glen Burnie is $1,947. Given that the FMR is $1960, it appears that the voucher amount is nearly sufficient to meet the market rent. However, the actual effectiveness of vouchers depends on whether they are adjusted annually to reflect changes in market conditions. As of now, the data indicates that vouchers are close to covering the market rent, but without specific information on annual adjustments, there is some uncertainty regarding long-term sustainability.
Investors should also consider other factors such as property management costs, maintenance expenses, and potential delays in voucher payments. These additional costs can further impact the overall financial viability of a rental property in Glen Burnie. It is recommended to conduct a thorough financial analysis and possibly consult with local real estate experts to gain a comprehensive understanding of the market dynamics.
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.