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 | $1,830 |
| 1 Bedroom | $1,950 |
| 2 Bedrooms | $2,410 |
| 3 Bedrooms | $3,010 |
| 4 Bedrooms | $3,350 |
| 5 Bedrooms | $3,886 |
| 6 Bedrooms | $4,352 |
| 7 Bedrooms | $4,700 |
| 8 Bedrooms | $4,935 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,950 | $148,538 | 1.31% | A |
| 2BR | $2,410 | $247,973 | 0.97% | C |
| 3BR | $3,010 | $247,219 | 1.22% | A |
| 4BR | $3,350 | $279,173 | 1.2% | B |
U.S. Census Bureau data (2024)
ZIP code 21202 is situated in the heart of Baltimore, Maryland, representing a densely populated urban neighborhood with a significant rental market. The area is home to 20,683 residents, with a notable 78.6% of them being renters, indicating a strong demand for rental properties. The median household income in this zip code stands at $59,377, which suggests a middle-class demographic capable of contributing to a stable rental environment. The median home value is $191,563, reflecting affordable housing options within the city.
Moving into the economic landscape of renting, the Fair Market Rent (FMR) for ZIP 21202 as of the fiscal year 2024 is set at $2,120. This figure contrasts with the actual market rent, known as the Zillow Observed Rent Index (ZORI), which is currently at $1,625. The disparity between the FMR and the ZORI highlights an opportunity for landlords and investors who can leverage the higher FMR rates through participation in the Section 8 program, ensuring a consistent and reliable stream of rental income.
The question then arises: Is this neighborhood better suited for a hands-off voucher operator or a hands-on value-add buyer? Given the high percentage of renters and the potential for leveraging the higher FMR rates, it's clear that hands-off operators can find success here. However, the lower market rent compared to the FMR also presents opportunities for value-add buyers who can improve property conditions and charge closer to the FMR, thus increasing their profit margins. For those willing to invest in renovations and management, the potential for higher returns is evident.
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.