Section 8 Fair Market Rent (FMR) for ZIP 21228 - 2027

Investment Score for ZIP 21228

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	$1,460
1 Bedroom	$1,550
2 Bedrooms	$1,920
3 Bedrooms	$2,400
4 Bedrooms	$2,670
5 Bedrooms	$3,097
6 Bedrooms	$3,469
7 Bedrooms	$3,747
8 Bedrooms	$3,934

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	$1,920	$300,821	0.64%	D
3BR	$2,400	$392,494	0.61%	D
4BR	$2,670	$511,010	0.52%	F
5BR	$3,097	$616,256	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 21228 (Catonsville, MD) #### Section 8 Voucher Dynamics In ZIP code 21228, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1770 per month for the year 2026. This figure represents approximately 18.9% of the median household income of $112,656. However, it is important to note that the actual rent prices in the area can be significantly higher. According to Zillow, the median price for a two-bedroom home in Catonsville is $302,158, which translates to a monthly rental cost of around $14.2 times the FMR, or roughly $25,116 annually. This suggests that actual rents could be as high as $2,100 per month, far exceeding the FMR. The constraints for voucher holders are significant due to the disparity between FMR and actual rents. While landlords are not required to accept Section 8 vouchers, many properties in this area may be priced beyond the FMR, making it challenging for voucher holders to find suitable housing. The voucher amount of $1770 might not cover the full rent in many cases, leading to potential out-of-pocket expenses for tenants. #### Affordability & Renter Profile The population of Catonsville is 50,492, with 29.0% of residents being renters. This indicates a substantial rental market, but it also highlights the challenge of affordability. Given that the occupancy rate is 96.6%, the market is relatively tight, suggesting that there is little excess supply of rental units. This tight market condition can drive up rents, further exacerbating the affordability issue for low-income renters who rely on Section 8 vouchers. The median household income of $112,656 implies that the majority of residents are middle to upper-middle class. However, the 29.0% renter population includes a mix of income levels, with some relying heavily on Section 8 vouchers. The high occupancy rate and the relatively small percentage of renters indicate that the rental market is competitive and likely to remain so. #### Investor Angle From an investor's perspective, the ZIP code 21228 presents a mixed picture. At the FMR level, the cash flow for a two-bedroom unit would be $1770 per month. However, given the high price-to-FMR ratio of 14.2x, it is likely that many landlords are charging well above the FMR. For instance, if a landlord charges $2,100 per month for a two-bedroom unit, the difference between the actual rent and the FMR would be $330 per month, which could be a significant out-of-pocket expense for a tenant using a Section 8 voucher. To determine the investment grade, we need to consider the potential for vacancy and the likelihood of finding tenants willing to pay the FMR. With an occupancy rate of 96.6%, the risk of vacancy is relatively low. However, the high price-to-FMR ratio suggests that landlords may struggle to find tenants willing to pay only the FMR, especially if they are competing with higher-priced units. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors should target properties that are priced below the FMR to ensure a steady stream of tenants. For example, a two-bedroom property priced at $1770 or slightly below would be more attractive to voucher holders and less likely to face vacancy issues. 2. **Consider Mixed-Income Developments**: Given the high median household income and the tight rental market, developing mixed-income properties could be a strategic approach. By offering a range of units, including those affordable to Section 8 voucher holders, investors can tap into both the subsidized and non-subsidized markets. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help secure a steady pipeline of Section 8 tenants. This can provide a more stable and predictable income stream compared to the general rental market. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 21228 is to **Hold**. While the area has a strong rental market with a high occupancy rate, the significant gap between FMR and actual rents poses challenges for voucher holders. Investors should focus on properties that are priced close to or below the FMR to ensure they can attract and retain tenants effectively. Additionally, engaging with local housing authorities and considering mixed-income developments can enhance the investment strategy in this market.

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.