Location: Garrett 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 | $122,540 | 1.13% | B |
U.S. Census Bureau data (2024)
The classification of ZIP code 21562 hinges on the balance between yield and stability, crucial factors for landlords and small-portfolio investors. With a Fair Market Rent (FMR) of $910 for the fiscal year 2024, this figure stands significantly above the market rent of $547, indicating a strong potential for rental yields. However, the median home value at $84,167 suggests that flipping properties might not be as lucrative due to the lower property values compared to areas with higher home values.
Stability is assessed through the percentage of renters, which is 26.9% in ZIP 21562. This indicates a moderate level of stability, as a higher proportion of homeowners generally signals greater stability. The average daily days on market (DOM) data is not available, which makes it challenging to gauge how quickly rental properties can be filled. However, the median household income of $47,500 provides some insight into the financial capacity of residents to sustain rental payments, suggesting a stable but not robust economic environment.
Given these metrics, ZIP 21562 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The significant gap between the FMR and market rent implies that there is room for higher rents, thus potentially offering better yields than purely market-driven rates. However, the relatively low median home value and the moderate renter population indicate that while the cash flow can be steady, it may not be as volatile or high-risk as in other markets where flipping is more common. The economic indicators suggest a reliable but not exceptionally high-income base, further supporting the notion of a stable investment environment.
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.