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 | $1,940 |
| 1 Bedroom | $2,070 |
| 2 Bedrooms | $2,560 |
| 3 Bedrooms | $3,200 |
| 4 Bedrooms | $3,560 |
| 5 Bedrooms | $4,130 |
| 6 Bedrooms | $4,626 |
| 7 Bedrooms | $4,996 |
| 8 Bedrooms | $5,246 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,560 | $344,008 | 0.74% | D |
| 3BR | $3,200 | $436,349 | 0.73% | D |
| 4BR | $3,560 | $546,571 | 0.65% | D |
| 5BR | $4,130 | $740,205 | 0.56% | F |
U.S. Census Bureau data (2024)
Pasadena, Maryland (ZIP 21122) offers investors a suburban Chesapeake Bay lifestyle characterized by waterfront communities and quiet residential streets. While largely a bedroom community within Anne Arundel County, the area is anchored by proximity to major economic hubs including Baltimore and Fort Meade. A significant local employer is Northrop Grumman, whose Electronic Systems sector is headquartered near Baltimore and provides high-skilled jobs to the region, supporting the area's affluent profile.
From a numerical standpoint, the housing data presents a tight but viable market. The HUD FY2026 Fair Market Rent (FMR) for a 2-bedroom unit is $2,350, which sits slightly below the current Zillow market rent of $2,447, creating a modest negative gap of $97. For investors calculating acquisition costs, the median home value is $454,575, while the median 2-bedroom sale price is $341,866. Properties are moving at a moderate pace, with a median of 42 days on market. While the market rent exceeds the voucher standard, the gap is narrow enough that strategic pricing or utility inclusions can bridge the difference.
The tenant pool here is distinct due to the low renter share of 13.4% and a high median household income of $127,587. This demographic profile suggests that voucher holders in this area likely represent working families seeking stability in a high-quality school district rather than transient populations. The neighborhood is served by highly-rated schools within the Anne Arundel County Public School system, and its proximity to the Baltimore-Washington Parkway ensures manageable transit for commuters, bolstering long-term demand.
The strongest investor angle in Pasadena is stability and appreciation rather than aggressive cash-flow. The high median income and low rental turnover suggest that tenants, including voucher holders, are likely to pay reliably and care for the property. Although the 2BR FMR trails the market by $97, the area's robust home values and proximity to major defense contractors like Northrop Grumman indicate strong equity potential. Investors should view this as a defensive play in a solid suburban market where demand for quality housing remains consistent.
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.