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 | $1,500 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,750 |
| 5 Bedrooms | $3,190 |
| 6 Bedrooms | $3,573 |
| 7 Bedrooms | $3,859 |
| 8 Bedrooms | $4,052 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,980 | $284,337 | 0.7% | D |
| 3BR | $2,480 | $489,228 | 0.51% | F |
| 4BR | $2,750 | $554,086 | 0.5% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP 21152 (Sparks Glencoe, MD) for Section 8 properties, follow this decision tree based on the provided data:
1) Does the Fair Market Rent (FMR) of $2,000 cover the debt service on a property valued at $526,638?
Yes: The FMR of $2,000 is sufficient to clear the debt service on a property priced at $526,638. This means that landlords can expect to receive rental income that meets their financial obligations, making ZIP 21152 a viable option for Section 8 investments.
No: If the FMR does not cover the debt service, investing in this ZIP code would be financially unwise. Landlords need to ensure that the rental income at least matches their debt service requirements to avoid losses.
2) How does the market rent of $1,657 compare to the FMR?
Above: If the market rent were above the FMR, it would indicate that there is potential for higher returns beyond what Section 8 tenants might pay. However, since the market rent is below the FMR, this scenario is not applicable.
At: If the market rent equaled the FMR, it would suggest a balanced market where landlords could rely on Section 8 rents to meet their income needs. Since the market rent is lower than the FMR, this scenario also does not apply.
Below: The market rent of $1,657 is below the FMR of $2,000, indicating that Section 8 rents are higher than the general market rates. This makes Section 8 properties particularly attractive in ZIP 21152, as they offer a higher guaranteed income compared to typical market conditions.
3) Is the demand sufficient with 27.1% of residents being renters and an unspecified number of days as Days on Market (DOM)?
Yes: With 27.1% of residents renting, there is a reasonable level of demand. The fact that the DOM is listed as 'N/A' suggests either a low turnover rate or a high demand for rental units, which would further support the viability of Section 8 investments in this area.
No: If the percentage of renters were significantly lower or the DOM indicated long periods before a unit was rented, then the demand would be insufficient. Given the data, however, this is not the case.
It Depends: This branch applies if there is uncertainty about the DOM. If the Days on Market is unusually high, even the 27.1% rental rate might not be enough to justify investment. Conversely, if the DOM is short, it indicates strong demand despite the percentage of renters being relatively modest.
In summary, if the FMR of $2,000 covers the debt service on a property valued at $526,638 and the market rent is below the FMR, then the answer is Yes. The higher Section 8 rent relative to the market rent and a decent rental population make ZIP 21152 a good target for Section 8 investments. However, landlords must verify the exact Days on Market to ensure sufficient demand.
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.