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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,680 | $133,080 | 1.26% | A |
| 3BR | $2,130 | $238,751 | 0.89% | C |
| 4BR | $2,350 | $334,703 | 0.7% | D |
| 5BR | $2,726 | $369,420 | 0.74% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 21225 works favorably for landlords. The Fair Market Rent (FMR) set at $1,400 for the fiscal year 2024 exceeds the market rent, as indicated by the Zillow Observed Rental Index (ZORI), which stands at $1,344. This means that landlords can potentially charge slightly above the market rate without exceeding the FMR threshold, providing a buffer against rental price fluctuations.
Acquisition in ZIP 21225 is relatively affordable. With a median home value of $223,518, it offers a lower entry point compared to other areas within the Baltimore-Columbia-Towson, MD MSA. The average days on market (DOM) of 21 days and a low price-cut share of 0.2% suggest that homes are selling quickly and without significant discounts, indicating a healthy market where properties are valued appropriately.
Tenant demand in ZIP 21225 is robust. The area has a total population of 34,062, with 50.4% of residents being renters. This high renter share points to a steady pool of potential tenants, making it easier for landlords to maintain occupancy rates and manage their properties effectively.
In summary, ZIP 21225 presents a viable investment opportunity for landlords and small-portfolio investors. The favorable rent math, combined with an affordable acquisition cost and strong tenant demand, supports the conclusion that this area is well-positioned for real estate investments under the Section 8 program. Landlords can expect to achieve positive cash flow while benefiting from a stable rental market.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.