Section 8 Fair Market Rent (FMR) for ZIP 21123 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 21123, located in Baltimore-Columbia-Towson County, Maryland, can be quite favorable for landlords when understood correctly. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $2440. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program.

To clarify how the voucher system works, let's break down the components. A tenant participating in the Section 8 program is typically responsible for paying 30% of their adjusted income towards rent. The Housing Authority then covers the difference between the tenant's contribution and the SAFMR. For example, if a tenant's adjusted monthly income is $1600, they would pay $480 (30%) toward the rent. In this scenario, the Housing Authority would reimburse the landlord the remaining $1960, ensuring the total rent payment reaches the $2440 SAFMR cap.

In addition to the base rent, there are utility allowances that must be considered. These allowances vary but generally cover the costs associated with electricity, gas, water, and sewer. If we assume an average utility allowance of $300 per month, this amount is also reimbursed by the Housing Authority. Therefore, the total reimbursement to the landlord would be the sum of the rent subsidy and the utility allowance, totaling $2260 in our example case ($1960 + $300).

Note that the SAFMR of $2440 is specifically tailored to this ZIP code, meaning it reflects the local rental market conditions more accurately than a broader metro or county-level rate would. However, the lack of local market rent data (N/A) makes it difficult to provide a precise comparison between the SAFMR and prevailing rents in the area.

To determine the reimbursement gap or surplus, we compare the SAFMR to the actual market rent. Since the local market rent data is unavailable, we cannot calculate the exact gap or surplus. But if the local market rent were lower than $2440, landlords would receive a surplus, which could be a significant advantage. Conversely, if the local market rent exceeds $2440, landlords would face a gap, where they might have to accept a lower rent than the market value or risk losing tenants who can only afford the voucher amount.

In summary, for a two-bedroom apartment in ZIP 21123, landlords can expect a guaranteed rent of up to $2440, with the Housing Authority covering any shortfall from the tenant's 30% contribution plus utility allowances. The key is understanding your local market conditions to determine whether you will see a surplus or a gap compared to the SAFMR.

Data Sources: FMR data from HUD (2027).

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.