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 | $1,570 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,590 |
| 4 Bedrooms | $2,880 |
| 5 Bedrooms | $3,341 |
| 6 Bedrooms | $3,742 |
| 7 Bedrooms | $4,041 |
| 8 Bedrooms | $4,243 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,590 | $457,757 | 0.57% | F |
| 4BR | $2,880 | $588,394 | 0.49% | F |
U.S. Census Bureau data (2024)
The yield is significantly influenced by the Fair Market Rent (FMR) of $1,940 for fiscal year 2024, which is notably higher than the market rent of $1,203. This disparity indicates a strong potential for rental income subsidies through the Section 8 program, enhancing profitability for landlords who participate. However, the median home value of $451,600 is lower than initially cited ($525,261), suggesting that while the area remains pricey, it may offer slightly more accessible opportunities for rental property acquisition compared to other high-value regions.
In terms of stability, the median income of $157,813 is a robust indicator of financial health among residents, supporting the likelihood of stable tenancy and reliable rent payments. The low percentage of renters at 11.1% implies that most residents own their homes, which generally leads to a more stable community with fewer turnovers. This characteristic is favorable for long-term, consistent cash flow rather than speculative, high-yield strategies.
ZIP 21162 can be classified as a steady-cashflow zone. The combination of a high median income and a low percentage of renters points towards a market where long-term investments are likely to generate dependable returns. The lack of data on days on market (DOM) does not detract from this conclusion, as the overall economic indicators suggest a stable environment for rental properties. Investors should focus on securing tenants who can benefit from the Section 8 subsidy to maximize their rental income without compromising on the stability of their investment.
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.