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 | $1,590 |
| 1 Bedroom | $1,740 |
| 2 Bedrooms | $2,130 |
| 3 Bedrooms | $2,760 |
| 4 Bedrooms | $3,130 |
| 5 Bedrooms | $3,631 |
| 6 Bedrooms | $4,067 |
| 7 Bedrooms | $4,392 |
| 8 Bedrooms | $4,612 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,760 | $674,123 | 0.41% | F |
| 4BR | $3,130 | $779,418 | 0.4% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 21104 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is $2,910. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. However, it's important to understand that the actual rent paid by the program is based on a combination of factors including the tenant's contribution and any utility allowances.
The local market rent for a two-bedroom apartment in ZIP 21104 is reported at $1,384 according to the Census ACS data. This means that if you are a landlord participating in the Section 8 program, your rental income will be capped at $2,910 per month for a two-bedroom unit, even though the market rent is significantly lower.
Under the Section 8 program, the tenant is responsible for paying approximately 30% of their adjusted monthly income towards rent. For simplicity, let's assume the average adjusted monthly income for tenants in this area is around $1,600. Therefore, the tenant would pay roughly $480 towards rent. The remainder, up to the SAFMR, is covered by the housing authority. In this case, that would mean the housing authority would cover the difference between the tenant's payment and the SAFMR, which is $2,430.
Utility allowances are also provided to help cover the cost of utilities such as electricity, water, and gas. These allowances vary but are generally set at a level that ensures the tenant does not pay more than 30% of their adjusted income towards rent and utilities combined. If we estimate an average utility allowance of $150 per month, this amount is separate from the rent reimbursement.
In summary, a landlord in ZIP 21104 can expect to receive a total reimbursement of approximately $2,580 per month for a two-bedroom apartment when a tenant uses a Section 8 voucher. This includes the $2,430 rent reimbursement plus the $150 utility allowance. Given the local market rent of $1,384, landlords participating in the Section 8 program for a two-bedroom unit will typically have a surplus of $1,196 per month, which can be seen as a significant advantage over the regular market rates.
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.