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 | $1,400 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,520 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,520 | $557,195 | 0.45% | F |
| 4BR | $2,800 | $722,301 | 0.39% | F |
| 5BR | $3,248 | $863,783 | 0.38% | F |
U.S. Census Bureau data (2024)
6.2% of the population in ZIP code 21120 are renters, indicating a modest demand for rental properties in the area. Landlords and small-portfolio investors should note that the Fair Market Rent (FMR) for the region, as of fiscal year 2024, stands at $2350. This figure represents the upper limit for Section 8 housing subsidies and is crucial for understanding the maximum allowable rent for subsidized units. In comparison, the actual market rent, according to Census ACS data, is $1,271, which is significantly lower than the FMR. This suggests that there could be opportunities for landlords to increase rents without exceeding the FMR threshold.
$646,756 is the median home value in this ZIP code, reflecting a relatively high-value neighborhood where property appreciation might be a key consideration for long-term investments. The median income in the area is $162,052, which is substantial and indicates a potentially strong ability among residents to afford higher rents. However, the lack of data on days on market (DOM) and the percentage of homes that have had their prices cut suggests that the local real estate market may not be as active or competitive as other areas.
Given the disparity between the market rent and the FMR, landlords in ZIP 21120 can effectively leverage the Section 8 program to secure tenants willing to pay up to $2350 per month. This can be particularly beneficial in a high-income area where finding affordable rental options may be challenging for some residents. With a stable demand for rentals and a high median income supporting the potential for higher rents, the Section 8 program offers a reliable source of tenancy for landlords looking to stabilize cash flows.
The verdict for Section 8 participation in ZIP 21120 is positive, given the favorable conditions for landlords to receive steady rental income without the risk of vacancy, especially when the market rent is well below the FMR.
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.