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 | $1,270 |
| 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 |
|---|---|---|---|---|
| 1BR | $1,360 | $130,053 | 1.05% | B |
| 2BR | $1,680 | $93,446 | 1.8% | A+ |
| 3BR | $2,130 | $87,563 | 2.43% | A+ |
| 4BR | $2,350 | $189,995 | 1.24% | A |
| 5BR | $2,726 | $298,914 | 0.91% | C |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 21217 (Baltimore, MD) for Section 8 investments, follow this decision tree based on the provided data.
Step 1: Calculate if the Fair Market Rent (FMR) of $1500 can cover the debt service on a property valued at $95,022.
If yes: The FMR of $1500 is sufficient to clear the debt service on a $95,022 property, assuming typical financing terms. This makes the investment financially viable from a cash flow perspective.
If no: The FMR of $1500 cannot cover the debt service on a $95,022 property under standard financing conditions. This would make the investment unprofitable without additional subsidies or lower financing costs.
Step 2: Compare the market rent ($1,586 ZORI) to the FMR.
If market rent is above FMR: The ZORI of $1,586 is higher than the FMR of $1500, indicating that market rents exceed the Section 8 payment standards. Landlords could potentially charge market rates to non-Section 8 tenants, enhancing profitability.
If market rent is at or below FMR: The ZORI of $1,586 is equal to or less than the FMR of $1500. This suggests that landlords will likely be limited to charging the FMR for all units, reducing potential rental income.
Step 3: Evaluate the demand factors: 70.0% of residents are renters, and the days on market (DOM) average is 54 days.
If there is sufficient demand: With 70.0% of residents being renters and an average DOM of 54 days, the demand appears strong. This indicates a healthy rental market where properties are occupied relatively quickly, which is beneficial for Section 8 investments.
If there is insufficient demand: If the 70.0% rental rate and 54-day DOM do not meet your criteria for acceptable occupancy rates, then the demand may not be robust enough to support a Section 8 investment. However, the data suggests these metrics are favorable.
Conclusion: If the FMR clears debt service and the market rent exceeds the FMR, and if the rental rate and DOM indicate strong demand, then the answer is yes. You should consider buying in ZIP 21217 for Section 8 investments. The financials and market dynamics support a profitable venture. If any of these conditions are not met, then the decision is either no or it depends on other factors such as financing terms, local competition, and personal investment goals.
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.