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 | $1,400 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,850 |
| 3 Bedrooms | $2,310 |
| 4 Bedrooms | $2,570 |
| 5 Bedrooms | $2,981 |
| 6 Bedrooms | $3,339 |
| 7 Bedrooms | $3,606 |
| 8 Bedrooms | $3,786 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,850 | $245,961 | 0.75% | D |
| 3BR | $2,310 | $312,912 | 0.74% | D |
| 4BR | $2,570 | $374,022 | 0.69% | D |
| 5BR | $2,981 | $458,491 | 0.65% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 21237, which includes Rossville, MD, in Baltimore County, can be explained using specific figures. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $1750. This SAFMR is the maximum amount that the housing authority will pay for a rental unit, reflecting the local market conditions.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), is $1735. This figure represents the average rent charged for a two-bedroom apartment in the area. Landlords participating in the Section 8 program should note that the SAFMR is specifically tailored to their ZIP code, ensuring that it accurately reflects the cost of renting in that particular area.
A landlord's income from a Section 8 voucher is determined by subtracting the tenant's portion of the rent and any utility allowances from the SAFMR. The tenant's portion is typically 30% of their adjusted income, which must be less than 50% of the area median income. For instance, if a tenant has an adjusted income of $1500, they would pay $450 ($1500 x 0.30) towards the rent. Utility allowances vary but are generally around $200-$300 per month for a two-bedroom apartment.
In ZIP 21237, the housing authority might provide a utility allowance of $250. With these numbers, the total reimbursement to the landlord would be $1750 minus the tenant's contribution and the utility allowance. If we use the example of a $1500 adjusted income, the landlord would receive $1750 - $450 - $250 = $1050 from the housing authority. This calculation assumes the tenant's income and utility allowance figures provided are accurate and applicable to the specific case.
To understand the impact on a landlord's income, consider the local market rent of $1735. If the landlord charges the market rate, the total income from the tenant and the housing authority would be $1735 (market rent) + $1050 (voucher reimbursement) - $1735 (market rent) = $1050. However, the landlord could also charge the SAFMR of $1750, leading to a slightly different scenario.
If the landlord charges $1750, the total income would still be $1750 (SAFMR) - $450 (tenant's portion) - $250 (utility allowance) = $1050. In this case, there is no surplus or gap since the landlord receives exactly the SAFMR amount, which matches the calculated reimbursement.
However, if the landlord charges the local market rent of $1735, the reimbursement would still be $1050, resulting in a surplus of $1735 (local market rent) - $1050 (reimbursement) = $685. This surplus comes directly from the tenant's portion of the rent and utility allowances.
In summary, landlords in ZIP 21237 can expect a Section 8 voucher to cover the SAFMR of $1750, minus the tenant's contribution and utility allowances. When the local market rent is lower than the SAFMR, as it is here, landlords can charge the market rate and still receive the full voucher amount, creating a surplus between the voucher payment and the actual rent collected.
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.