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 | $1,810 |
| 1 Bedroom | $1,940 |
| 2 Bedrooms | $2,390 |
| 3 Bedrooms | $2,990 |
| 4 Bedrooms | $3,320 |
| 5 Bedrooms | $3,851 |
| 6 Bedrooms | $4,313 |
| 7 Bedrooms | $4,658 |
| 8 Bedrooms | $4,891 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,940 | $378,447 | 0.51% | F |
| 2BR | $2,390 | $407,540 | 0.59% | F |
| 3BR | $2,990 | $598,344 | 0.5% | F |
| 4BR | $3,320 | $844,195 | 0.39% | F |
| 5BR | $3,851 | $1,149,870 | 0.33% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 21403 in Annapolis, MD, on the yield and stability axes reveals a moderate investment opportunity. The Fair Market Rent (FMR) for 2024 is set at $2,340, while the current market rent stands at $2,024. This indicates a slight premium when renting through the Section 8 program. The median home value of $613,770 suggests that properties in this area are relatively expensive, which could impact the overall yield considering the higher acquisition costs.
On the stability axis, the ZIP code shows a 30.9% rental rate, indicating a significant portion of residents are tenants. The days on market (DOM) average is 12 days, suggesting that properties in this area are typically rented quickly, which is favorable for maintaining steady cash flow. Additionally, the median household income of $123,329 provides a strong financial foundation for tenants, reducing the risk of default and enhancing long-term stability.
Given these figures, ZIP 21403 leans towards being a steady-cashflow zone. While the yield is moderately positive due to the higher FMR compared to the market rent, the relatively low DOM and high median income support a stable environment where consistent returns can be expected over time. However, the high median home value means that the initial investment is substantial, which might limit the attractiveness for smaller portfolio investors looking for higher yields relative to their capital outlay.
To summarize, the investment climate in ZIP 21403 is best characterized by its balance between moderate yield and good stability, making it suitable for landlords and investors seeking reliable, albeit not exceptionally high, returns.
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.