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 | $1,260 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,680 | $197,572 | 0.85% | C |
| 3BR | $2,130 | $238,974 | 0.89% | C |
| 4BR | $2,350 | $273,226 | 0.86% | C |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 21239, located in Baltimore, Maryland, involve understanding the relationship between the Safety and Fair Market Rent (SAFMR) and the local market rent. For a two-bedroom apartment in this ZIP code, the SAFMR for fiscal year 2024 is set at $1650. This figure represents the maximum amount that the Housing Choice Voucher program will pay for rent in this specific ZIP code.
The local market rent, as measured by the Zillow Observed Rent Index (ZORI), stands at $1477 for a two-bedroom unit. This indicates that the average rent charged for similar units in the area is lower than the SAFMR. However, landlords should be aware that the actual reimbursement from the voucher program does not solely depend on the SAFMR but also includes the tenant's portion of the rent and utility allowances.
The tenant is required to contribute 30% of their adjusted income towards the rent. If we assume an average adjusted income of $1800 per month for a tenant in this ZIP code, then the tenant would contribute approximately $540 towards the rent. The remainder, up to the SAFMR limit, is covered by the voucher program.
In addition to the rent contribution, the voucher program also provides a utility allowance. This allowance varies based on the number of bedrooms and the region, but it typically ranges from $100 to $200 per month for a two-bedroom unit. For simplicity, let’s use an average utility allowance of $150.
Therefore, the total reimbursement a landlord can expect from the voucher program for a two-bedroom unit is calculated as follows:
The SAFMR is $1650. Subtracting the tenant’s contribution of $540 leaves $1110 to be covered by the voucher program. Adding the utility allowance of $150 brings the total reimbursement to $1260. This means the voucher program will cover $1260 of the rent plus utilities, while the tenant covers $540 of the rent.
To determine the reimbursement gap or surplus, compare the total reimbursement ($1260) against the local market rent ($1477). In this case, the reimbursement falls short by $217 per month. This $217 is the gap that landlords must either absorb or find ways to make up, such as through cost-saving measures or seeking additional sources of income.
Note: The SAFMR of $1650 is specifically set for this ZIP code, meaning it reflects the unique economic conditions of ZIP 21239. Landlords operating in other areas within Baltimore City County should check their respective SAFMRs, which might differ.
In summary, landlords in ZIP 21239 can expect a reimbursement of around $1260 per month for a two-bedroom unit under the Section 8 program, creating a reimbursement gap of $217 compared to the local market rent of $1477.
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.