Location: Baltimore-Columbia-Towson, MD | Metro: Baltimore-Columbia-Towson, MD MSA
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 | $1,310 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,720 | $373,556 | 0.46% | F |
| 3BR | $2,150 | $466,540 | 0.46% | F |
| 4BR | $2,390 | $582,674 | 0.41% | F |
| 5BR | $2,772 | $662,853 | 0.42% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 21617, specifically in Centreville, MD, is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1800, while the Census ACS reports the market rent at $1,338. This represents a gap of $462, or approximately 34.6%, between what the government deems fair and what the market demands.
In this scenario where the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this gap to maximize their yields. Voucher tenants provide a stable and predictable income stream, which is crucial for maintaining cash flow and covering operational costs. Given that only 22.1% of residents are renters, the competition for rental properties is relatively low, making it easier for landlords to secure long-term, reliable tenants.
The median home value in Centreville, MD is $530,494, indicating a relatively affluent neighborhood. However, the median income of $116,898 suggests that many residents may still find it challenging to afford homeownership, thereby relying on rental options. The Section 8 program thus serves as an essential tool for bridging this affordability gap.
Investing in Section 8 properties in 21617 offers a unique opportunity to capitalize on the government's willingness to pay above-market rates. Landlords should note that the additional administrative requirements and potential for increased scrutiny come with this higher yield. Nonetheless, the financial benefits are substantial, with the ability to charge $1800 per month compared to the average market rent of $1,338.
For those considering entering the Section 8 market in Centreville, MD, the analysis clearly shows that there is a significant financial incentive to do so. The gap between FMR and market rent ensures that landlords can achieve better returns on their investments, especially in a market where rental demand is lower relative to homeownership.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.