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 | $1,330 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,430 |
| 5 Bedrooms | $2,819 |
| 6 Bedrooms | $3,157 |
| 7 Bedrooms | $3,410 |
| 8 Bedrooms | $3,581 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,750 | $230,769 | 0.76% | D |
| 3BR | $2,190 | $318,209 | 0.69% | D |
| 4BR | $2,430 | $368,741 | 0.66% | D |
| 5BR | $2,819 | $416,219 | 0.68% | D |
U.S. Census Bureau data (2024)
The ZIP code 21227 encompasses parts of Halethorpe, Maryland, a suburban neighborhood located in Baltimore County. With a total population of 34,907, it is characterized by a significant portion of residents who are renters—accounting for 35.3% of the housing units. The median household income in this area stands at $85,986, indicating a middle-class community with reasonable financial stability. The median home value in ZIP 21227 is $306,564, reflecting a moderate cost of living compared to other areas in the county.
Turning to the rental economics, the Fair Market Rent (FMR) for ZIP 21227 in fiscal year 2024 is set at $1,640, which is notably lower than the market rent as measured by Zillow's Observed Rent Index (ZORI), at $1,745. This discrepancy suggests that there is a slight premium for market-rate rentals over those covered by vouchers, potentially offering a modest profit margin for landlords who can secure tenants outside of the voucher program.
Given these metrics, ZIP 21227 appears to be suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the presence of a substantial rental market and a reasonable FMR provide a stable environment for managing Section 8 properties. Meanwhile, value-add buyers might find opportunities to increase rents above the FMR, leveraging the higher market rent to boost their investment returns. However, they should be prepared to invest time and resources into property improvements to attract market-rate tenants willing to pay the higher rent.
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.