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 | $1,620 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $2,130 |
| 3 Bedrooms | $2,660 |
| 4 Bedrooms | $2,960 |
| 5 Bedrooms | $3,434 |
| 6 Bedrooms | $3,846 |
| 7 Bedrooms | $4,154 |
| 8 Bedrooms | $4,362 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,130 | $336,392 | 0.63% | D |
| 3BR | $2,660 | $389,536 | 0.68% | D |
| 4BR | $2,960 | $562,435 | 0.53% | F |
| 5BR | $3,434 | $664,249 | 0.52% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 21158 in Westminster, MD, reveals a significant difference between the Federal Market Rent (FMR) and the actual market rent when compared to the median home value.
Annualizing the 2BR FMR of $2100 for FY 2024 against the median home value of $471,327 yields an implied gross rental yield of approximately 4.46%. This calculation is derived from the formula: (Annual Rent / Median Home Value) * 100 = Gross Yield. In this case, ($2100 * 12 / $471,327) * 100 = 4.46%. However, the actual market rent, as indicated by ZORI at $1,935 per month, results in a gross rental yield of around 4.17%, calculated similarly as ($1,935 * 12 / $471,327) * 100 = 4.17%.
The 20.8% renter density suggests that while Westminster has a notable number of renters, it is not overwhelmingly high. The days on market (DOM) of 21 days indicates a relatively quick turnover rate, which can be beneficial for landlords as it minimizes vacancy periods and associated costs.
Given these factors, the market rent scenario of $1,935 per month appears more realistic for most investors. While the FMR provides a higher gross rental yield, the market rent reflects what tenants are actually paying and is thus more indicative of the potential income landlords can expect from properties in this area. Additionally, the quicker DOM aligns better with the market rent, as it implies that properties renting at market rates are filling vacancies faster.
To conclude, the gross rental yield for a property in ZIP 21158 under the FMR would be 4.46%, whereas the yield based on the actual market rent would be 4.17%. The latter is more reflective of the real estate investment landscape in Westminster, MD, and should be considered by investors when evaluating potential returns.
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.