Section 8 Fair Market Rent (FMR) for ZIP 21215 - 2027

Investment Score for ZIP 21215

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	$1,230
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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,360	$87,450	1.56%	A+
2BR	$1,680	$117,539	1.43%	A
3BR	$2,130	$170,649	1.25%	A
4BR	$2,350	$228,585	1.03%	B
5BR	$2,726	$345,874	0.79%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 21215 (Baltimore, MD) #### Section 8 Voucher Dynamics In ZIP code 21215, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1770 per month for 2026. This figure represents 41.2% of the median household income in the area, which stands at $51,587. The actual median rent for a two-bedroom apartment on Zillow is significantly lower at $119,386, translating to a monthly rental cost that is approximately 5.6 times less than the FMR. This disparity suggests that landlords who charge the FMR may struggle to find tenants willing to pay such high rents. For voucher holders, the maximum allowable rent is capped by the FMR, creating a constraint where they might have difficulty finding suitable housing options unless landlords are willing to accept lower rents. #### Affordability & Renter Profile The population of ZIP code 21215 is 52,229, with 45.2% of residents being renters. This indicates a substantial rental market, but the occupancy rate of 86.2% suggests that there is some competition among renters for available units. Given the median household income of $51,587, many residents may find it challenging to afford housing at the FMR levels, particularly for larger units like three- and four-bedroom apartments priced at $2280 and $2550 respectively. The affordability issue is further compounded by the fact that the median rent for a two-bedroom unit is only $21,347 annually ($1779 per month), which is much lower than the FMR of $1770 per month. This implies that the majority of renters in the area are likely paying below the FMR, making it difficult for landlords to charge higher rents without losing potential tenants. #### Investor Angle From an investor’s perspective, the ZIP code 21215 presents a mixed picture. The price-to-FMR ratio of 5.6x for a two-bedroom unit indicates that the property values are relatively low compared to the FMR, potentially offering opportunities for cash flow-positive investments if landlords can negotiate rents closer to the actual market rates rather than the FMR. However, the investment grade would be considered moderate due to the affordability challenges faced by residents. While there is a significant rental market, the high percentage of renters and the lower-than-FMR median rents suggest that demand for higher-priced units may be limited. Investors should carefully consider the balance between setting rents at the FMR level and attracting tenants who can afford those rents. #### Specific Actionable Insights 1. **Rent Negotiation**: Landlords should consider negotiating rents closer to the actual market rates rather than the FMR. For example, a two-bedroom apartment could be rented for around $1779 per month, which is still above the median rent but more affordable for residents. This approach would help attract tenants while maintaining a reasonable profit margin. 2. **Focus on Smaller Units**: Given the affordability issues, investing in smaller units (one-bedroom or studio apartments) might be more viable. The FMR for a one-bedroom unit is $1450, which is closer to the median rent levels and may be more attractive to potential tenants. 3. **Government Programs**: Utilize government programs designed to support affordable housing. For instance, the Housing Choice Voucher program (Section 8) can provide subsidies to make units more affordable for low-income residents. However, landlords must be prepared to work within the constraints of the program, including rent caps and regular inspections. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 21215 is to **Hold**. The area has a strong rental market with a high percentage of renters, but the median rents are significantly lower than the FMR. This makes it challenging to achieve cash flow positivity at the FMR levels, especially for larger units. Investors should focus on smaller units and consider negotiating rents closer to the actual market rates to ensure a steady stream of tenants while maintaining profitability. Additionally, leveraging government programs can help mitigate some of the financial risks associated with lower rents.

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.