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 | $1,800 |
| 1 Bedroom | $1,920 |
| 2 Bedrooms | $2,370 |
| 3 Bedrooms | $2,960 |
| 4 Bedrooms | $3,300 |
| 5 Bedrooms | $3,828 |
| 6 Bedrooms | $4,287 |
| 7 Bedrooms | $4,630 |
| 8 Bedrooms | $4,862 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,920 | $193,731 | 0.99% | C |
| 2BR | $2,370 | $275,317 | 0.86% | C |
| 3BR | $2,960 | $367,926 | 0.8% | C |
| 4BR | $3,300 | $428,117 | 0.77% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 21231, located in Baltimore, MD, within Baltimore City County, are defined by the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment in FY 2024, the SAFMR is set at $2260. This figure represents the maximum amount that the Housing Choice Voucher program will pay for rent in this particular ZIP code.
In comparison, the local market rent for a two-bedroom unit, measured by ZORI (Zillow Observed Rent Index), stands at $2,162. This indicates that the SAFMR is slightly higher than the average market rent, creating an interesting dynamic for landlords.
A landlord participating in the Section 8 program receives a reimbursement based on the SAFMR minus the tenant's portion of the rent. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. If we assume a tenant's adjusted monthly income is $1,500, their portion would be $450. Therefore, the landlord would receive $1,810 from the voucher program ($2260 - $450).
Additionally, there are utility allowances that can vary but are generally modest. These allowances do not significantly impact the total reimbursement amount. Thus, for simplicity, they can be ignored in this calculation.
Given these specifics, if a landlord charges the market rate of $2,162 for a two-bedroom unit, the reimbursement gap—the difference between the market rent and the voucher reimbursement—would be $352 per month ($2,162 - $1,810).
This gap means landlords must decide whether the stability and security of having a tenant with a government-backed voucher is worth the lower net income compared to the market rate. Conversely, if landlords charge less than the market rate, they might close this gap or even see a surplus, depending on the exact rent charged.
To summarize, in ZIP 21231, a landlord can expect a reimbursement of approximately $1,810 for a two-bedroom unit under the Section 8 program, leaving a gap of $352 when compared to the local market rent of $2,162.
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.