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 | $2,230 |
| 1 Bedroom | $2,370 |
| 2 Bedrooms | $2,930 |
| 3 Bedrooms | $3,660 |
| 4 Bedrooms | $4,070 |
| 5 Bedrooms | $4,721 |
| 6 Bedrooms | $5,288 |
| 7 Bedrooms | $5,711 |
| 8 Bedrooms | $5,997 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,930 | $373,111 | 0.79% | D |
| 3BR | $3,660 | $514,231 | 0.71% | D |
| 4BR | $4,070 | $590,020 | 0.69% | D |
| 5BR | $4,721 | $738,392 | 0.64% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 21076 in Hanover, Maryland, for fiscal year 2024 is set at $2820. This figure represents the payment standard for landlords participating in the Section 8 Housing Choice Voucher program. It does not mean you will receive $2820 as rent; rather, it is the maximum amount that the government will pay toward a tenant's rent.
To put this into perspective, the local Zillow Observed Rental Index (ZORI) for the same area is $2,465. The FMR is higher than the average market rate, which can be beneficial for landlords who want to ensure they receive a competitive rent without worrying about finding tenants willing to pay above-market rates.
The demand for rentals in Hanover is strong, with 34.2% of residents being renters. This indicates that there is a significant portion of the population looking for housing, which translates to a steady pool of potential tenants. With such a high percentage of renters, it's likely that your property will remain occupied, reducing the risk of vacancy.
If you're considering acquiring a new rental property in this ZIP code, the median home value is approximately $535,733. This figure represents the typical price range for homes in Hanover, giving you an idea of the investment required to enter the market. While this might seem like a substantial upfront cost, the long-term benefits of stable occupancy and government-backed payments can outweigh the initial expense.
Before making the decision to participate in Section 8, verify that your property meets the necessary quality standards as defined by HUD. These standards ensure that the units are safe, decent, and sanitary, and failing to meet them can result in penalties or disqualification from the program.
In summary, the FMR of $2820 provides a guaranteed payment level, while the local ZORI of $2,465 suggests a favorable comparison to market rates. With a 34.2% renter share, you can expect consistent demand for your rental property. At an acquisition cost of around $535,733, entering the Section 8 market in Hanover requires a significant investment but offers stability and long-term returns. Ensure your property meets HUD's quality requirements to avoid any issues.
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.