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 | $285,339 | 0.47% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 21536 reveals distinct scenarios based on the Federal Market Rent (FMR) and the actual market rent figures. For a two-bedroom unit, the annualized FMR set at $970 for fiscal year 2026 reflects a metropolitan standard. Meanwhile, the Census ACS reports a market rent of $664 per month for the same unit type.
To derive the gross yield, we first calculate the annual rents. The FMR scenario translates into an annual rent of $11,640 ($970 x 12 months), while the market rent scenario amounts to an annual rent of $7,968 ($664 x 12 months). Given the median home value in ZIP 21536 is $241,967, the implied gross yield under the FMR scenario is approximately 4.81%. This calculation is straightforward: divide the annual rent by the median home value ($11,640 / $241,967).
In contrast, the market rent scenario yields a significantly lower gross yield of about 3.29% ($7,968 / $241,967). This stark difference underscores the importance of understanding the local rental environment when considering Section 8 properties.
The 24.2% renter density suggests a moderate demand for rental housing, but it does not directly indicate the proportion of tenants interested in Section 8. However, it does imply that there is a sizable segment of the population renting, which could include those seeking government-subsidized housing options.
The lack of data on days on market (DOM) makes it challenging to assess how quickly units might be filled under a Section 8 program. Nonetheless, the higher gross yield under the FMR scenario is more realistic for investors looking to leverage the guaranteed income stream provided by Section 8 vouchers. This scenario aligns better with the goal of maximizing returns, even if it requires navigating the complexities of federal housing assistance programs.
While the market rent scenario offers a more conservative estimate, it may underestimate the potential benefits of participating in the Section 8 program, particularly in areas with high tenant turnover or where market rents are volatile. Investors should consider the stability and predictability of voucher payments when comparing these gross yields.
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.