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 | $2,070 |
| 1 Bedroom | $2,210 |
| 2 Bedrooms | $2,730 |
| 3 Bedrooms | $3,410 |
| 4 Bedrooms | $3,800 |
| 5 Bedrooms | $4,408 |
| 6 Bedrooms | $4,937 |
| 7 Bedrooms | $5,332 |
| 8 Bedrooms | $5,599 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,730 | $483,549 | 0.56% | F |
| 3BR | $3,410 | $512,516 | 0.67% | D |
| 4BR | $3,800 | $704,923 | 0.54% | F |
| 5BR | $4,408 | $1,084,750 | 0.41% | F |
U.S. Census Bureau data (2024)
The ZIP code 21409, located in Annapolis, MD, within the Baltimore-Columbia-Towson, MD MSA metro area, can serve as a cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the significant spread between the Fair Market Rent (FMR) of $2,820 for fiscal year 2024 and the current market rent of $3,195. Additionally, the median home value stands at $594,829, which further supports the stability and reliability of this investment.
The low 0.2% price-cut share and a 20-day Days on Market (DOM) indicate that the housing market in this area is highly competitive and stable, reducing the risk of having to lower prices to attract tenants. The 9.0% renter share suggests that while there is a substantial portion of homeowners, there remains a notable demand for rental properties. With a median income of $147,151, tenants in this area are likely to be financially stable, making them reliable for rental payments.
Incorporating properties in ZIP 21409 into a Section 8 portfolio ensures a steady and predictable cash flow due to the consistent demand and high market rents. This makes it an ideal choice for landlords and small-portfolio investors seeking long-term stability and 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.