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 | $1,310 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,720 | $306,168 | 0.56% | F |
| 3BR | $2,150 | $388,479 | 0.55% | F |
| 4BR | $2,390 | $486,061 | 0.49% | F |
| 5BR | $2,772 | $611,241 | 0.45% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 21078, which encompasses Havre de Grace, Maryland, in Harford County, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, set at $1,530 per month for the fiscal year 2024. This figure is specifically tailored for this ZIP code, reflecting the local rental market conditions. In contrast, the local market rent for a similar unit, as measured by ZORI (Zillow Observed Rent Index), stands at $1,736.
A landlord participating in the Section 8 program receives a subsidy that covers the difference between the tenant's contribution and the total rent. The tenant's portion is typically 30% of their adjusted income, with utility allowances factored in to cover additional living expenses. For instance, if a tenant has an adjusted income of $2,000 per month, they would contribute $600 towards rent, assuming no other deductions or allowances apply. Utility allowances vary but can add up to a significant portion of the monthly rent.
To illustrate, let’s assume the utility allowance for a two-bedroom apartment is $200. Therefore, the total amount the landlord would receive from the tenant and the utility allowance would be $800 ($600 + $200). Given the SAFMR of $1,530, the Section 8 voucher would cover the remaining $730 to meet the total rent. However, since the local market rent is higher at $1,736, there would be a reimbursement gap for the landlord.
The reimbursement gap is the difference between the market rent and the SAFMR plus the tenant’s contribution. In this case, the landlord would face a gap of $206 per month ($1,736 - $1,530 = $206; $206 - $200 utility allowance = $6).
This means that if you as a landlord were to rent out your property at the local market rate of $1,736, you would have to absorb the $6 difference between the voucher reimbursement and the market rent. Conversely, if you set your rent at the SAFMR rate of $1,530, you would receive the full amount covered by the voucher and the tenant’s contribution, with no surplus or gap.
In summary, the SAFMR for ZIP 21078 is $1,530 for a two-bedroom apartment, while the local market rent is $1,736. With a typical utility allowance, the reimbursement gap for landlords renting at market rates is $6 per month. This economic framework should guide your decisions on pricing and participation in the Section 8 program.
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.