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 | $1,230 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,680 | $257,961 | 0.65% | D |
| 3BR | $2,130 | $403,335 | 0.53% | F |
| 4BR | $2,350 | $541,686 | 0.43% | F |
| 5BR | $2,726 | $645,426 | 0.42% | F |
U.S. Census Bureau data (2024)
The ZIP code 21074, encompassing Hampstead, MD, presents a dynamic housing market with clear indications of both supply and demand forces at play. The Fair Market Rent (FMR) set at $1400 for fiscal year 2024 suggests a competitive environment where landlords must offer reasonable rates to attract tenants. In contrast, the Census American Community Survey (ACS) reports the market rent at $1,260, indicating that actual rental prices are below the FMR, possibly due to landlords trying to fill vacancies quickly.
The low price-cut share of 0.2% implies that most homes are selling at or near their asking prices, a sign that demand is strong relative to supply. This is further supported by the relatively short days on market (DOM) of 24 days, suggesting that homes are selling promptly once they come onto the market. However, the median home value of $433,268 provides context to the overall affordability and desirability of the area for potential homeowners.
A key factor in understanding the long-term dynamics of this market is the 13.4% renter share. While this figure is lower than the national average, it still represents a significant portion of the housing market. A smaller percentage of renters can indicate a preference for homeownership, which might alleviate some immediate rental pressures but also suggests a steady demand for both rental and for-sale properties as the population grows and shifts.
In summary, ZIP 21074 appears to be a market where demand is robust, particularly for homeownership, but there is still a notable rental market. The interplay between these two sectors will continue to shape the local real estate landscape, offering opportunities for landlords and small-portfolio investors alike.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.