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 | $2,150 |
| 1 Bedroom | $2,300 |
| 2 Bedrooms | $2,830 |
| 3 Bedrooms | $3,540 |
| 4 Bedrooms | $3,940 |
| 5 Bedrooms | $4,570 |
| 6 Bedrooms | $5,118 |
| 7 Bedrooms | $5,527 |
| 8 Bedrooms | $5,803 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,540 | $568,211 | 0.62% | D |
| 4BR | $3,940 | $794,633 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 21140 within the Baltimore-Columbia-Towson, MD MSA reveals a competitive rental landscape where the Federal Market Rent (FMR) set by HUD at $2910 for fiscal year 2024 plays a crucial role. The FMR figure is significant because it represents the maximum amount that landlords can charge for a voucher tenant's portion of the rent. However, due to the lack of specific market rent data, it is challenging to provide an exact comparison between the FMR and the prevailing market rates.
To understand the potential cash flow for voucher tenants, we must consider the median home value in ZIP 21140, which stands at $662,154. This high median home value suggests a relatively affluent area, implying that the local rental market could be robust. A basic calculation of the rent-to-price ratio, using the FMR of $2910, would yield approximately 0.7% when annualized. This ratio is quite low, indicating that the rental income might not be as lucrative compared to the property's purchase price. Therefore, voucher tenants in this ZIP code are likely to cashflow marginally at the FMR rate, necessitating either premium units or strategic cost management to achieve positive cash flow.
The absence of specific market rent data and days-on-market (DOM) information means that precise comparisons cannot be made. However, the high median home value does suggest a strong real estate market, which typically supports higher rents and faster sales. In such a scenario, landlords and small-portfolio investors should focus on maintaining their properties to attract higher-paying tenants, including those with vouchers, who can help stabilize cash flow while also benefiting from potential appreciation in property values.
The strongest investor angle in ZIP 21140 is likely to be appreciation. Given the high median home value and the area's economic characteristics, there is a solid foundation for long-term capital gains, making it an attractive investment for those looking beyond immediate cash flow to the growth of their real estate portfolio.
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.