Location: Garrett County, MD | Metro: Garrett County, MD
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 | $850 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $273,321 | 0.49% | F |
U.S. Census Bureau data (2024)
ZIP code 21531, located in Garrett County, MD, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) for the metro area in fiscal year 2026, which is $970, and the actual market rent of $575. The median home value in the area is $220,909.
The substantial difference between the FMR and market rent suggests that landlords can achieve higher returns on their investments by participating in the Section 8 program. For instance, if a landlord rents out a property at the market rate of $575 but receives the FMR rate of $970 through Section 8, they will have a steady and reliable cash flow, especially considering the lower turnover rates typical of Section 8 properties.
The area's median income of $63,750 indicates a stable economic base, supporting the viability of the cash-flow anchor strategy. However, the 15.2% renter share implies a smaller pool of potential tenants compared to areas with higher renter shares, but this is offset by the guaranteed income from the Section 8 program.
A cash-flow anchor is essential for any diversified real estate investment portfolio, ensuring consistent revenue even when other parts of the portfolio experience fluctuations. ZIP 21531 provides an excellent opportunity for such stability due to the favorable FMR-to-market rent ratio.
To summarize, ZIP 21531 should be considered a cash-flow anchor in a Section 8 portfolio strategy, given the $395 per unit monthly spread between the FMR and market rent, along with the median home value and median income levels.
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.