Section 8 Fair Market Rent (FMR) for ZIP 21220 - 2027

Investment Score for ZIP 21220

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	$1,550
1 Bedroom	$1,650
2 Bedrooms	$2,040
3 Bedrooms	$2,550
4 Bedrooms	$2,840
5 Bedrooms	$3,294
6 Bedrooms	$3,689
7 Bedrooms	$3,984
8 Bedrooms	$4,183

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
2BR	$2,040	$239,952	0.85%	C
3BR	$2,550	$300,536	0.85%	C
4BR	$2,840	$427,392	0.66%	D
5BR	$3,294	$553,153	0.6%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 21220 (Middle River, MD) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Middle River, MD (ZIP code 21220), as of 2026, is set at $1870 for a two-bedroom unit. This represents approximately 27.4% of the median household income of $81,817. The actual rental rates in the area can be inferred from the Zillow median price for a two-bedroom home, which stands at $237,593. Given that the Price-to-FMR ratio is 10.6x, it suggests that the actual rent for a two-bedroom unit could be around $1870 * 10.6 = $1982. However, this is a rough estimate, and the actual rent might vary based on market conditions and property specifics. For Section 8 voucher holders, the FMR serves as a cap on the amount landlords can charge. In Middle River, this means that a landlord renting out a two-bedroom unit would be limited to charging up to $1870 per month under the voucher program. If the actual rent exceeds this amount, the tenant would need to pay the difference out-of-pocket, which can be a significant financial burden given the occupancy rate of 92.3%, indicating a relatively high demand for housing. #### Affordability & Renter Profile Middle River has a population of 42,824, with 31.2% of residents being renters. This indicates a substantial rental market, but also a competitive environment where affordability is a key concern. With the median household income at $81,817, the FMR for a two-bedroom unit ($1870) represents a reasonable portion of the income, suggesting that many residents could afford to live here without assistance. However, the fact that 31.2% of the population are renters implies that there is a segment of the community that relies heavily on affordable housing options. Given the occupancy rate of 92.3%, it is clear that the rental market in Middle River is tight. This high occupancy rate indicates that there is little vacancy, and therefore, landlords have a strong position in setting rental prices. For those relying on Section 8 vouchers, the limited supply of units that fall within the FMR guidelines could make finding suitable housing challenging. #### Investor Angle From an investor's perspective, the key question is whether the FMR levels allow for positive cash flow when considering the purchase price and ongoing expenses. The Zillow median price for a two-bedroom unit is $237,593, and the FMR is $1870. Assuming a typical mortgage rate of 5% and a down payment of 20%, the monthly mortgage payment for a two-bedroom unit would be approximately $1073. This calculation is based on a loan amount of $190,066 (80% of $237,593) over 30 years at a 5% interest rate. To determine if the investment is cash-flow positive, we need to consider other costs such as property taxes, insurance, maintenance, and utilities. Let’s assume these additional costs total around $300 per month. This brings the total monthly cost to $1373 ($1073 + $300). Since the FMR for a two-bedroom unit is $1870, and assuming the actual rent is closer to $1982, the potential monthly profit would be $1982 - $1373 = $609. This positive cash flow scenario makes Middle River a potentially attractive investment location for Section 8-focused investors. However, the investment grade would depend on factors such as the stability of the rental market, the reliability of tenants, and the overall economic health of the area. #### Specific Actionable Insights 1. **Focus on Two-Bedroom Units**: Given the high occupancy rate and the significant number of renters, investing in two-bedroom units is likely to yield the best returns. These units are most in demand, and the FMR of $1870 provides a solid baseline for rental pricing. The potential to charge slightly above FMR, say $1982, while still attracting tenants who can leverage their Section 8 vouchers, offers a good balance between affordability and profitability. 2. **Consider Property Location**: While the FMR sets a limit on rental prices, the actual rent a property can command depends significantly on its location within Middle River. Properties in desirable neighborhoods with easy access to amenities like shopping centers, schools, and public transportation are likely to fetch higher rents and attract more stable tenants. 3. **Monitor Local Economic Indicators**: The median household income of $81,817 suggests that Middle River has a middle-class demographic. However, changes in local employment opportunities, industry shifts, and economic trends could impact the ability of residents to afford housing. Investors should keep a close eye on these indicators to ensure they remain aligned with the long-term viability of their investments. #### Bottom Line For Section 8-focused investors, Middle River (ZIP code 21220) presents a mixed picture. On one hand, the tight rental market and high occupancy rate suggest strong demand for housing. On the other hand, the relatively high purchase price and the constraints imposed by FMR could limit the number of suitable investment properties. **Recommendation**: **Hold**. Middle River appears to be a stable market with strong demand, but the high purchase prices and the need to adhere to FMR guidelines mean that investors should proceed cautiously. Existing investors with properties already within FMR limits are well-positioned, but new investors might find it challenging to enter the market profitably unless they can secure properties below the median price or in highly desirable locations. This analysis is based solely on the provided data and does not account for external factors that could influence the market, such as changes in local regulations or broader economic shifts.

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.