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 | $1,230 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,680 | $210,681 | 0.8% | D |
| 3BR | $2,130 | $271,357 | 0.78% | D |
| 4BR | $2,350 | $315,499 | 0.74% | D |
| 5BR | $2,726 | $348,033 | 0.78% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 21214 in Baltimore, MD, for fiscal year 2024 is set at $1,510. This figure represents the maximum amount that a landlord can charge a tenant participating in the Section 8 Housing Choice Voucher program. It's important to note that this is not the actual rent you would charge your tenants; it's the payment standard used by the government to ensure affordability.
In comparison, the local Zillow Observed Rent Index (ZORI) for the same area is $1,611. This indicates that the market rent is slightly higher than the FMR, which could mean that landlords might need to be flexible on other expenses or amenities to participate in the program effectively. However, given the high demand for rental properties in this area, with 21.4% of the population being renters, there is a significant pool of potential tenants who would benefit from the lower rent ceiling offered by Section 8.
If you're considering acquiring a property in this area for a Section 8 rental, the median home value is around $253,800. This figure should factor into your decision-making process regarding whether the long-term benefits outweigh the initial investment. The demand for rentals is strong, but it's crucial to understand that the income from Section 8 will be capped at the FMR, which is lower than the market rate.
Before proceeding, it's essential to verify that the property meets all the necessary criteria for participation in the Section 8 program. This includes ensuring that the unit passes a Housing Quality Standards (HQS) inspection, which checks for safety, health, and habitability standards. This verification step is critical because failing to meet these standards could result in disqualification from the program, leading to financial losses.
To summarize, while the FMR of $1,510 is lower than the local market rent of $1,611, the strong demand for rentals, represented by the 21.4% renter share, suggests that there is a viable market for Section 8 tenants. With an acquisition cost of approximately $253,800, the decision to enter the Section 8 market should be carefully weighed against your financial goals and the property's condition. Ensuring the property passes the HQS inspection is a key step in confirming its eligibility for the program.
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.