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 | $1,760 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,320 |
| 3 Bedrooms | $2,900 |
| 4 Bedrooms | $3,230 |
| 5 Bedrooms | $3,747 |
| 6 Bedrooms | $4,197 |
| 7 Bedrooms | $4,533 |
| 8 Bedrooms | $4,760 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,320 | $482,624 | 0.48% | F |
| 3BR | $2,900 | $503,754 | 0.58% | F |
| 4BR | $3,230 | $687,795 | 0.47% | F |
| 5BR | $3,747 | $978,982 | 0.38% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 21619, which includes Chester, MD, in Queen Anne's County, revolve around the SAFMR (Small Area Fair Market Rent) and the local market conditions. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $2450. This figure is specifically tailored for this ZIP code, reflecting the unique rental dynamics within the area.
Contrastingly, the local market rent for a similar unit, as indicated by ZORI (Zillow Observed Rent Index), stands at $2300. This suggests that the SAFMR is slightly higher than the actual market rent, potentially offering a slight financial cushion to landlords who participate in the program.
A landlord should understand that the total amount paid by a Section 8 voucher does not solely come from the SAFMR. It also includes the tenant's portion of the rent and any utility allowances. Typically, the tenant is responsible for paying approximately 30% to 40% of their adjusted income towards rent. If we assume an average tenant contribution of $735 (based on 30% of a median household income of $24,500 annually), the remaining balance would be covered by the government through the voucher program.
The reimbursement to the landlord from the voucher program would be the lesser of the SAFMR or the market rent. In this case, it would be $2300. Therefore, if the tenant contributes $735, the government would pay the landlord $1565 to cover the difference. However, the government might also provide additional utility allowances, which can vary based on the specific circumstances of the tenant and the location.
In ZIP 21619, the typical reimbursement gap or surplus for a two-bedroom apartment would be a surplus of $150. This surplus arises because the SAFMR is higher than the local market rent, meaning landlords receive more than the prevailing market rate when participating in the Section 8 program. This extra amount can help offset some of the administrative costs associated with renting to Section 8 tenants.
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.