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 | $1,710 |
| 1 Bedroom | $1,960 |
| 2 Bedrooms | $2,400 |
| 3 Bedrooms | $3,080 |
| 4 Bedrooms | $3,440 |
| 5 Bedrooms | $3,990 |
| 6 Bedrooms | $4,469 |
| 7 Bedrooms | $4,827 |
| 8 Bedrooms | $5,068 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,080 | $587,565 | 0.52% | F |
| 4BR | $3,440 | $770,080 | 0.45% | F |
| 5BR | $3,990 | $1,001,958 | 0.4% | F |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP 21131 in relation to Section 8 properties reveals several potential issues that landlords should consider. Firstly, tenant turnover can be problematic when comparing the market rent, which is currently unavailable, to the Fair Market Rent (FMR) of $2910 for FY 2024. This discrepancy may lead to difficulties in maintaining consistent occupancy rates. Secondly, vacancy exposure is a concern due to the lack of available data on the number of days on market (DOM), making it challenging to predict how long a property might remain vacant. Additionally, the typical home value of $756,584 combined with a median income of $197,619 suggests a significant deferred-maintenance exposure. Landlords will need to ensure that they can afford the upkeep required for such valuable properties without relying heavily on rental income.
However, these risks must be weighed against the fact that 1.6% of the population are renters, indicating a relatively high concentration of potential voucher holders. In areas with a higher renter density, there tends to be a greater demand for Section 8 vouchers, which can help mitigate some of the aforementioned risks. The presence of a substantial number of renters in ZIP 21131 could provide a steady stream of qualified tenants who can utilize vouchers to cover their rent, thus ensuring more predictable cash flows.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.