Location: Garrett County, MD | Metro: Allegany County, MD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 21521 reveals a unique balance between yield potential and market stability. With a Fair Market Rent (FMR) of $920 for fiscal year 2024, it stands above the local market rent of $863, indicating a higher potential rental yield. However, the median home value of $116,794 suggests that the investment cost is also relatively high, which needs to be weighed against the FMR to determine overall profitability.
On the stability axis, the ZIP code shows a mixed profile. The percentage of renters at 10.4% is notably low, which could indicate a less stable tenant base. This figure implies that the majority of residents prefer homeownership over renting, which might lead to higher vacancy rates and increased competition among landlords. Additionally, the absence of data on the average days on market (DOM) for rental listings further complicates the assessment of how quickly properties can be rented out, adding another layer of uncertainty.
The median household income of $64,194 provides some insight into the economic health of the area. While this figure does not directly correlate to rental stability, it does suggest that tenants in this ZIP code may have sufficient income to cover their rent, assuming they are willing to rent at all. This income level supports the ability to pay the FMR of $920, but the low rental rate indicates that other factors, such as preference for homeownership, play a significant role.
Given these figures, ZIP 21521 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The higher FMR compared to the market rent signals a better chance for cash flow, especially if the property can be rented at or near the FMR. However, the low percentage of renters and the lack of DOM data suggest that achieving consistent occupancy may be challenging, thus affecting the overall stability of the investment.
To summarize, landlords and small-portfolio investors should approach ZIP 21521 with caution, focusing on properties that can be rented at or near the FMR of $920, while understanding that the market is not as volatile as a flip-style market would be, but also not as stable as a zone with a higher percentage of renters and clearer DOM trends.
Data Sources: FMR data from HUD (2027). 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.