Section 8 Fair Market Rent (FMR) for ZIP 21224 - 2027

Investment Score for ZIP 21224

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	$1,740
1 Bedroom	$1,850
2 Bedrooms	$2,290
3 Bedrooms	$2,860
4 Bedrooms	$3,180
5 Bedrooms	$3,689
6 Bedrooms	$4,132
7 Bedrooms	$4,463
8 Bedrooms	$4,686

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	$1,850	$196,557	0.94%	C
2BR	$2,290	$243,481	0.94%	C
3BR	$2,860	$291,372	0.98%	C
4BR	$3,180	$398,054	0.8%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 21224 (Baltimore, MD) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 21224, as per the 2026 estimates, is set at $2150 for a two-bedroom apartment. This amount represents 29.0% of the median household income of $89,017, indicating that it is a reasonable threshold for affordability. However, the actual rental market in this area is significantly higher. The Zillow median price for a two-bedroom home is $245,643, which translates into a monthly rent of approximately $2047 if we assume a 5% annual rental yield. Given the price-to-FMR ratio of 9.5x, it is clear that actual rents far exceed the FMR. For instance, a two-bedroom apartment renting at $2047 would be 1.9x the FMR. This means that Section 8 voucher holders face significant constraints in finding suitable housing within their budget. They may have to look outside the ZIP code or accept lower-quality units to stay within the FMR limits. #### Affordability & Renter Profile ZIP code 21224 has a population of 47,465, with 41.5% of residents being renters. The occupancy rate stands at 89.0%, suggesting that the rental market is relatively tight. With a median household income of $89,017, the majority of residents can afford higher rents, but the 41.5% who are renters likely include a mix of middle-income families and individuals who might struggle to find affordable housing. The high price-to-FMR ratio indicates that the market is skewed towards higher-end rentals, making it challenging for low-income households to secure housing without assistance. #### Investor Angle From an investor perspective, the ZIP code 21224 offers mixed prospects. The FMR for a two-bedroom unit is $2150, but the actual median rent based on Zillow’s data is around $2047. While this is still below the Zillow median price, it suggests that there is potential for cash flow if investors can acquire properties at or below the FMR levels. However, given the tight rental market and the high price-to-FMR ratio, securing properties at such low prices may be difficult. To assess the investment grade, we need to consider the overall demand and supply dynamics. With a high occupancy rate and a significant portion of the population being renters, there is a strong demand for rental properties. However, the challenge lies in finding properties that can be rented out at the FMR without substantial renovation costs. If investors can find units that are underpriced or in need of minor improvements, they could potentially achieve positive cash flow. Otherwise, the investment grade would be considered moderate due to the difficulty in aligning with FMR. #### Specific Actionable Insights 1. **Target Undervalued Properties**: Investors should focus on acquiring undervalued properties or those in need of minor renovations. For example, a two-bedroom apartment currently renting at $1800 could be improved to command a higher rent while still staying within the FMR limit of $2150. This would allow for a positive cash flow scenario. 2. **Consider Multi-Family Units**: Given the higher FMR for larger units, multi-family buildings may offer better opportunities. A three-bedroom unit renting at $2730 would be more aligned with the actual market conditions, providing a higher rental income. Additionally, multi-family units often benefit from economies of scale, reducing the cost per unit. 3. **Engage with Local Housing Authorities**: To maximize the chances of securing tenants with Section 8 vouchers, investors should establish relationships with local housing authorities. These authorities can provide insights into the availability of vouchers and help streamline the process of renting to eligible tenants. #### Bottom Line For Section 8-focused investors, the ZIP code 21224 presents a challenging yet potentially rewarding market. The tight rental market and high occupancy rates suggest strong demand, but the high price-to-FMR ratio makes it difficult to find properties that can be rented out profitably within the FMR limits. Therefore, the recommendation is to **Hold** investments in this ZIP code unless investors can identify undervalued properties or engage in strategic partnerships with local housing authorities to ensure a steady stream of Section 8 tenants. In summary, while there are opportunities for positive cash flow, the market conditions make it a moderate-risk investment. Investors should proceed cautiously and focus on specific strategies to mitigate risks and maximize returns.

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.