Location: Caroline County, MD | Metro: Baltimore-Columbia-Towson, MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,580 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $2,080 |
| 3 Bedrooms | $2,600 |
| 4 Bedrooms | $2,890 |
| 5 Bedrooms | $3,352 |
| 6 Bedrooms | $3,754 |
| 7 Bedrooms | $4,054 |
| 8 Bedrooms | $4,257 |
U.S. Census Bureau data (2024)
The ZIP code 21607 presents several challenges for landlords considering Section 8 investments. Firstly, tenant turnover is a significant concern. The market rent stands at $1,650, whereas the Fair Market Rent (FMR) for FY 2024 is set at $1,400. This discrepancy can lead to higher tenant churn as individuals may prefer non-subsidized housing that better matches their budget or seek out areas where the FMR is closer to the market rent. A higher turnover rate not only increases administrative costs but also poses a risk to maintaining steady rental income.
Vacancy exposure is another critical issue. The Days on Market (DOM) figure is currently unavailable, which makes it difficult to predict how long properties might remain vacant. However, given the typical home value of $384,807 and a median income of $91,250, there is a notable gap between property values and residents' earnings. This disparity can result in deferred maintenance, as tenants may struggle to afford necessary repairs or improvements, leading to potential long-term damage to the property and increased future costs for the landlord.
Despite these risks, the ZIP code has a substantial renter share of 24.4%. High renter density typically translates into greater demand for rental properties, including those participating in the Section 8 program. This demand can help mitigate the risks associated with tenant turnover and vacancy rates, ensuring a more stable occupancy rate and rental income stream.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 21607 is moderate.
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.