Location: Allegany County, MD | Metro: Allegany County, MD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 21557 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $1270 for the fiscal year 2024. This figure is specific to this ZIP code, meaning it reflects the local rental market conditions.
To understand what a landlord will receive from a voucher, we need to break down the components. The voucher covers the difference between the SAFMR and the tenant's portion of the rent, which is typically 30% of their income. Additionally, there are utility allowances that can vary but generally range from $150 to $250 per month, depending on the size of the unit and the number of occupants.
Let's assume a tenant's portion is $300 and the utility allowance is $200. In this scenario, the total reimbursement to the landlord would be calculated as follows:
The landlord receives the sum of the tenant's contribution and the utility allowance, which equals $500. Therefore, the total reimbursement from the voucher program to the landlord would be $1270 (SAFMR) - $300 (tenant's portion) + $200 (utility allowance) = $1170 per month.
Given that the local market rent for a two-bedroom apartment is currently not available, it's important to compare the SAFMR to the typical market rates in the area. If the local market rent is higher than $1270, landlords might face a shortfall. Conversely, if it's lower, they could see a surplus.
In ZIP 21557, landlords should anticipate a reimbursement gap for a two-bedroom apartment. With the SAFMR at $1270 and the landlord receiving $1170 from the voucher program, there is a shortfall of $100 per month. This means landlords must either accept a slightly lower rent than they might otherwise charge or find ways to reduce operating costs to remain financially viable.
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.