Location: Baltimore-Columbia-Towson, MD | Metro: Baltimore-Columbia-Towson, MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,230 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 21160 (Whiteford, MD) reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 21160 in fiscal year 2024 is set at $1400. However, the median market rent for the area is approximately $1200, based on recent data. This means that the FMR is $200 higher than the market rent, representing a 16.7% premium.
The gap between the FMR and the market rent is crucial for landlords and small-portfolio investors considering participation in the Section 8 program. When the FMR exceeds the market rent, as it does here, voucher tenants can provide a stable source of income. Landlords can expect to receive a consistent payment that is above the local market rate, making it a yield play. This stability is particularly valuable given the relatively low percentage of renters in the area (18.9%) and the high median home value ($440,523).
Despite the higher FMR, the median household income in ZIP 21160 is $106,181, indicating that the area has a higher economic profile. This suggests that landlords who participate in the Section 8 program should be aware of the potential cost of housing voucher tenants below open-market rates. Although the FMR provides a buffer, the overall rental market in the area may not fully reflect the economic conditions of the zip code.
To summarize, the $200 premium in FMR over market rent makes ZIP 21160 a favorable location for landlords seeking stable returns through the Section 8 program. However, the economic context of the area, with its higher median income and home values, implies that landlords must carefully manage their properties to ensure they remain competitive and attractive to voucher tenants.
Data Sources: FMR data from HUD (2027). 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.