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 | $1,660 |
| 1 Bedroom | $1,770 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $3,040 |
| 5 Bedrooms | $3,526 |
| 6 Bedrooms | $3,949 |
| 7 Bedrooms | $4,265 |
| 8 Bedrooms | $4,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,190 | $307,918 | 0.71% | D |
| 3BR | $2,740 | $401,766 | 0.68% | D |
| 4BR | $3,040 | $617,545 | 0.49% | F |
| 5BR | $3,526 | $724,685 | 0.49% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 21128, Perry Hall, MD, might have several concerns regarding the feasibility of investing in the area under Section 8 guidelines. Let's address these points directly using the available data.
Objection 1: Will Fair Market Rent (FMR) $2010 (zip FY 2024) cover the mortgage on a $440,686 home?
The FMR for ZIP 21128 in FY 2024 is set at $2,010 per month. To determine if this amount can cover the mortgage on a home valued at $440,686, we need to consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on such a loan would be approximately $2,300. This means that the FMR of $2,010 falls short by about $290 per month. Therefore, it will not fully cover the mortgage payment on a $440,686 home.
Objection 2: Is there enough renter demand at 16.0%?
The rental vacancy rate in ZIP 21128 stands at 16.0%. While this figure indicates a higher vacancy rate compared to some other areas, it does not necessarily mean there is insufficient demand. A 16.0% vacancy rate suggests that out of every 100 rental units, 16 are unoccupied. This could still represent a significant number of potential tenants given the size of the housing stock. However, the data does not provide a direct comparison to historical trends or other similar markets, so it's difficult to conclusively state whether this level of vacancy is indicative of low demand or merely reflects seasonal fluctuations.
Objection 3: Will vouchers keep pace with $1,652 market rents?
The market rent for ZIP 21128 is reported at $1,652 per month. The FMR of $2,010 exceeds this market rent, suggesting that vouchers should be sufficient to cover the cost of renting a typical unit. However, it's important to note that the actual voucher amount may vary based on household size and income, and there is no guarantee that all tenants will receive the maximum allowable voucher amount. Furthermore, the data does not indicate how the voucher amounts are projected to change in future years, which is crucial for long-term investment planning.
In summary, while the FMR does not fully cover the mortgage on a $440,686 home, it does exceed the current market rent, indicating that vouchers should be adequate for covering rental costs. The rental vacancy rate, though relatively high, does not necessarily point to a lack of demand without additional context. These insights should help inform your investment decisions in ZIP 21128.
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.