Section 8 Fair Market Rent (FMR) for ZIP 21207 - 2027

Investment Score for ZIP 21207

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,340
1 Bedroom	$1,430
2 Bedrooms	$1,760
3 Bedrooms	$2,200
4 Bedrooms	$2,450
5 Bedrooms	$2,842
6 Bedrooms	$3,183
7 Bedrooms	$3,438
8 Bedrooms	$3,610

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,760	$233,016	0.76%	D
3BR	$2,200	$299,967	0.73%	D
4BR	$2,450	$347,595	0.7%	D
5BR	$2,842	$378,985	0.75%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 21207, Baltimore County, MD #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 21207 in Baltimore County, MD, provide a benchmark for rental costs that can be used by Section 8 voucher holders. According to the 2026 FMR data, the rates for various bedroom sizes are as follows: - 0BR: $1270 - 1BR: $1450 - 2BR: $1770 (which is 31.7% of the median household income) - 3BR: $2280 - 4BR: $2550 These figures represent the maximum amount that a voucher holder can pay for rent. However, the actual rents in the area might exceed these limits, which could create significant constraints for voucher holders. For instance, if the actual rent for a 2BR unit exceeds $1770, the tenant would have to cover the difference out-of-pocket, which could be challenging given that 2BR units already consume a substantial portion of their income. #### Affordability & Renter Profile ZIP code 21207 has a population of 47,099, with 39.3% of residents being renters. This indicates a sizeable rental market, but it also suggests that competition for affordable housing could be intense. The occupancy rate of 93.9% further supports the notion that the market is relatively tight, with few vacancies available. Given the median household income of $67,060, the affordability of housing is a critical issue. The FMR for a 2BR unit is $1770, which is 31.7% of the median income. This means that a typical household would need to spend over one-third of their income on rent, leaving limited resources for other necessities. The high price-to-FMR ratio of 10.7x for Zillow's median 2BR home price ($227,150) suggests that property values are significantly higher than what most renters can afford based on the FMR guidelines. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers cash-flow positive opportunities at the FMR levels. Given the FMRs listed above, let's consider the potential returns: - A 2BR unit renting at $1770 per month would generate annual gross rental income of $21,240. - If we assume a typical mortgage payment of around 1% of the median home price ($227,150), the monthly mortgage payment would be approximately $1893. - Subtracting the mortgage payment from the rental income leaves a negative cash flow of about $123 per month. This negative cash flow scenario implies that properties rented at FMR levels would likely not be profitable for investors without additional subsidies or cost-saving measures. Furthermore, the high price-to-FMR ratio of 10.7x suggests that the market is overpriced relative to rental values, making it difficult to achieve positive cash flow even with lower mortgage payments. In terms of investment grade, the tight market and high occupancy rate could make the area attractive for long-term investments. However, the mismatch between FMR and actual rents, coupled with the negative cash flow, suggests that the investment grade for Section 8-focused investors is low. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, smaller units (like 0BR or 1BR) might offer better cash flow opportunities. For example, a 1BR unit renting at $1450 per month would generate annual gross rental income of $17,400. Assuming a lower mortgage payment due to the smaller size, the cash flow could be more favorable. 2. **Consider Subsidies**: Investors should explore government subsidies or programs that can help offset the negative cash flow. For instance, the Low-Income Housing Tax Credit (LIHTC) program could provide significant tax benefits that improve the financial viability of Section 8-focused investments. 3. **Evaluate Rental Trends**: Monitor rental trends closely to understand how actual rents compare to FMRs. If rents are consistently below FMRs, there might be opportunities to rent at or near FMR levels and still attract tenants. Conversely, if rents are well above FMRs, the challenge of finding tenants who can afford the rent will be greater. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 21207 is to **Skip**. The high price-to-FMR ratio and the resulting negative cash flow make it challenging to achieve profitability. While the area has a strong rental market with high occupancy rates, the mismatch between property values and rental affordability suggests that this ZIP code is not ideal for Section 8 investments. Investors looking for cash-flow positive opportunities should consider areas with lower price-to-FMR ratios or where rents are closer to FMR levels.

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.