Location: Allegany County, MD | Metro: Allegany County, MD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The ZIP code 21555 encompasses a small, tight-knit neighborhood with a total population of 1,470 residents. Approximately 17.6% of these residents are renters, indicating a modest demand for rental properties. The median household income in this area stands at $53,266, which is reflective of a middle-class community. The median home value is $196,479, suggesting that homeownership is accessible but not overly common given the rental rate.
From an investment perspective, the rent economics present an interesting opportunity. The Fair Market Rent (FMR) for ZIP 21555 as of the fiscal year 2024 is set at $1,080. However, the actual market rent, according to Census ACS data, is significantly lower at $790. This discrepancy indicates that there could be potential for higher rental income through Section 8 vouchers, which typically cover the gap between market rates and FMRs.
The question then arises: does this neighborhood suit a hands-off voucher operator or require a hands-on value-add approach? Given the relatively low market rent compared to the FMR, a hands-off operator might find success in this ZIP code. The demand for affordable housing, supported by Section 8 subsidies, can ensure steady cash flow without extensive property management efforts. However, for a value-add buyer looking to increase property values and rents, this area presents challenges due to its limited population size and the already moderate median income levels.
In summary, ZIP 21555 offers a stable environment for hands-off Section 8 investments, with a clear financial incentive to participate in the program. The gap between the actual market rent and the FMR suggests a reliable source of income for landlords willing to accept vouchers. For those seeking to actively manage and improve their properties, the scope for increasing rents may be constrained by the local economic conditions and the limited number of potential tenants.
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.