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 | $1,510 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,770 |
| 5 Bedrooms | $3,213 |
| 6 Bedrooms | $3,599 |
| 7 Bedrooms | $3,887 |
| 8 Bedrooms | $4,081 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,990 | $237,187 | 0.84% | C |
| 3BR | $2,490 | $323,049 | 0.77% | D |
| 4BR | $2,770 | $427,495 | 0.65% | D |
| 5BR | $3,213 | $497,635 | 0.65% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 21236 (Nottingham, MD) as a real estate investment market can be analyzed based on its yield and stability metrics. Yield is determined by comparing the Fair Market Rent (FMR) of $1950 with the median market rent of $1761 for the fiscal year 2024, alongside the median home value of $334,980. Stability factors include the percentage of renters at 30.4%, the days on market (DOM) average of 10 days, and the median household income of $95,149.
On the yield axis, the FMR of $1950 is higher than the market rent of $1761, indicating a potential for above-average rental income in the area. This suggests a relatively high-yield opportunity compared to the general market, which could be attractive for investors seeking to maximize their rental returns. However, the median home value of $334,980 implies that the initial capital investment would be substantial, which might temper the overall yield when considering the cost of acquisition and maintenance.
Regarding stability, the 30.4% rental rate is moderate and indicates that a significant portion of the housing stock is owner-occupied, which can contribute to neighborhood stability. The low DOM average of 10 days suggests that properties sell quickly, which is generally favorable for short-term investments or flips. However, it also points towards a competitive market where homes are in demand. The median household income of $95,149 provides insight into the financial capacity of residents, supporting the notion that there is a reasonable level of economic stability within the community.
Combining these factors, ZIP 21236 leans towards being a steady-cashflow zone. The slightly above-market rental rates indicate a good yield, while the moderate rental rate and decent household income suggest a stable tenant base. Although the quick DOM average might hint at some flip-style activity, the overall context favors a market where long-term rental investments are likely to perform well. Landlords and small-portfolio investors should find Nottingham, MD, a viable option for generating consistent cash flow, given the specific figures provided.
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.