Location: Baltimore-Columbia-Towson, MD | Metro: Baltimore-Columbia-Towson, MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,910 |
| 1 Bedroom | $2,040 |
| 2 Bedrooms | $2,520 |
| 3 Bedrooms | $3,150 |
| 4 Bedrooms | $3,500 |
| 5 Bedrooms | $4,060 |
| 6 Bedrooms | $4,547 |
| 7 Bedrooms | $4,911 |
| 8 Bedrooms | $5,157 |
To understand the economics of Section 8 housing in ZIP code 21404, it's essential to break down the components that determine the actual payment received by landlords. For a two-bedroom unit in this specific ZIP, the Standard Area Fair Market Rent (SAFMR) for FY 2024 is set at $2440. This figure represents the maximum amount that the housing authority will pay for a rental unit based on the local market conditions.
The SAFMR is the key benchmark here, indicating that the rate is specifically tailored for this ZIP code, reflecting the unique cost of living and rental market dynamics present in the Baltimore-Columbia-Towson County area. However, it's important to note that the local market rent is currently unavailable, which can make it challenging to directly compare the SAFMR with prevailing market rates.
A landlord should be aware that the actual payment received from a Section 8 voucher isn't simply the SAFMR. The reimbursement includes the tenant's portion of the rent plus any utility allowances. Typically, tenants contribute 30% of their adjusted income toward rent. If we assume an average adjusted income of $2000 per month for a tenant in this area, the tenant's contribution would be approximately $600. Thus, the housing authority would cover the remaining balance up to the SAFMR of $2440.
In addition to the rent, there are utility allowances that can vary based on the type of unit and location. These allowances are designed to help cover electricity, gas, water, and other necessary services. For a two-bedroom unit, these allowances might typically range from $200 to $300 monthly, depending on the specifics of the lease and the household size.
Given these parameters, the total reimbursement a landlord can expect from a Section 8 voucher for a two-bedroom unit in ZIP 21404 would be around $2440, including the tenant's contribution and utility allowances. However, if the local market rent exceeds this SAFMR, landlords will face a reimbursement gap. Conversely, if the market rent is lower, they could see a surplus compared to what they might receive from non-voucher tenants.
Since the local market rent is currently unknown, it's impossible to definitively state whether landlords will experience a surplus or a gap. But assuming the SAFMR closely aligns with the market rent, landlords can expect a reimbursement that covers the majority of their rental costs, with the potential for either a surplus or shortfall depending on the specific rental price set above or below the SAFMR.
Data Sources: FMR data from HUD (2027).
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.