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 | $1,490 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,960 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $2,730 |
| 5 Bedrooms | $3,167 |
| 6 Bedrooms | $3,547 |
| 7 Bedrooms | $3,831 |
| 8 Bedrooms | $4,023 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,450 | $346,458 | 0.71% | D |
| 4BR | $2,730 | $401,057 | 0.68% | D |
| 5BR | $3,167 | $441,515 | 0.72% | D |
U.S. Census Bureau data (2024)
In ZIP code 21133, there are several factors that could pose challenges for a landlord considering Section 8 investments. Tenant turnover is a significant concern when comparing the market rent of $1,456 to the Fair Market Rent (FMR) of $1,860 for FY 2024. Landlords might face difficulties retaining tenants who find it more economical to seek housing outside the program. Vacancy exposure is another critical issue, with an average Days on Market (DOM) of 30 days indicating a relatively quick turnover rate, which can be financially draining due to the costs associated with re-renting and maintaining vacant properties.
The deferred maintenance exposure is substantial, given the typical home value of $365,512 and a median income of $80,480. This suggests that many homeowners may struggle to keep up with necessary repairs and maintenance, potentially leading to higher property management costs for landlords. Additionally, the financial strain on residents could result in delayed rent payments or other financial obligations, increasing the risk of delinquency and eviction.
However, these risks must be weighed against the high renter share of 31.6%, which typically correlates with a higher demand for rental properties. This strong rental market can provide a steady stream of Section 8 tenants, mitigating some of the risks associated with tenant turnover and vacancy exposure. The high number of renters also indicates a robust need for affordable housing, which can be advantageous for landlords willing to navigate the complexities of the Section 8 program.
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.