Location: Allegany County, MD | Metro: Allegany 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 | $860 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $142,191 | 0.98% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 21545 in Allegany County, Maryland, reveals several key points for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $970. However, the market rent based on Census ACS data is currently at $905. This indicates that landlords may need to adjust their rental pricing strategies to align closer with the market rate, or they risk having units remain vacant.
Regarding the affordability of acquisitions, the median home value in ZIP 21545 stands at $122,960. With no available data on Days on Market (DOM) or the percentage of homes that have been listed at a price cut, it's difficult to gauge how competitive the real estate market is for purchases. Nonetheless, the relatively low median home value suggests that acquiring properties could be financially feasible for many investors.
There is also a need to consider tenant demand. The population of ZIP 21545 is 1,694, with 19.6% of residents being renters. This means that approximately 333 individuals are potential tenants. While the number of renters is not overwhelming, it does provide a steady pool of potential occupants for rental properties.
In conclusion, while the rent math may not currently favor landlords due to the discrepancy between FMR and actual market rents, the median home value presents an affordable opportunity for property acquisition. Tenant demand is modest but present, supporting the idea that rental properties can find occupancy. Investors should closely monitor market rent trends to ensure profitability and avoid overpricing their units. Overall, ZIP 21545 offers a balanced environment for real estate investment, particularly for those willing to adapt to local market conditions.
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.