Section 8 Fair Market Rent (FMR) for ZIP 21550 - 2027

Location: Garrett County, MD | Metro: Garrett County, MD

Investment Score for ZIP 21550

F
Monthly Rent (2BR)
$1,050
Median Price (2BR)
$240,476
1% Rule
0.44%
Annual Yield
5.24%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$880
1 Bedroom$910
2 Bedrooms$1,050
3 Bedrooms$1,390
4 Bedrooms$1,390
5 Bedrooms$1,612
6 Bedrooms$1,805
7 Bedrooms$1,949
8 Bedrooms$2,046

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,050 $240,476 0.44% F
3BR $1,390 $309,806 0.45% F
4BR $1,390 $499,028 0.28% F
5BR $1,612 $947,051 0.17% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
13,691
Median Household Income
$64,921
Housing Units
8,529
Renter Percentage
23.6%
Occupancy Rate
71.5%
Renter Occupied
1,438

The ZIP code 21550, located in Oakland, MD, presents a unique challenge for renters given the local economic conditions and rental market dynamics. The median household income stands at $64,921, which places significant constraints on the amount available for housing expenses. At a market rate of $803 per month, renting becomes a considerable financial burden for many households.

Comparatively, the Fair Market Rent (FMR) set at $1,010 for metro areas in fiscal year 2026, as determined by HUD, is higher than the current market rate. This suggests that the area has some flexibility in rental pricing, but it also indicates that the actual market rate is already below the government-set benchmark, potentially reflecting the local economic realities.

Oakland's population of 13,691 includes 23.6% who are renters. This relatively low percentage of renters means that landlords face stiff competition for tenants willing and able to pay market rates. The affordability gap between median income and both market and voucher rates is substantial, indicating that many potential renters might lean towards subsidized housing options to manage their costs effectively.

For landlords considering whether to accept Section 8 vouchers or focus on cash-paying tenants, the data points to a strategic decision. Accepting vouchers could provide a steady stream of tenants due to the high demand for affordable housing options. However, the cash flow from non-subsidized tenants paying slightly above the market rate might be more attractive if they can find them.

In conclusion, landlords in ZIP 21550 should weigh the benefits of voucher acceptance against the potential for higher rents from non-subsidized tenants. Given the economic conditions and the affordability gap, voucher tenants represent a reliable segment of the market, while securing cash-paying tenants could require additional marketing efforts and possibly lowering expectations on rental income to match the local economic reality.

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.