Section 8 Fair Market Rent (FMR) for ZIP 21620 - 2027
Location: Kent County, MD | Metro: Baltimore-Columbia-Towson, MD MSA
Investment Score for ZIP 21620
F
Monthly Rent (2BR)
$1,680
Median Price (2BR)
$300,649
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,230 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
Investment Analysis by Bedroom Size
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms |
Monthly FMR |
Median Price |
1% Rule |
Grade |
| 2BR |
$1,680 |
$300,649 |
0.56% |
F |
| 3BR |
$2,130 |
$368,311 |
0.58% |
F |
| 4BR |
$2,350 |
$503,704 |
0.47% |
F |
| 5BR |
$2,726 |
$679,026 |
0.4% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$80,530
The ZIP code 21620, located in Chestertown, MD, presents several considerations for landlords and small-portfolio investors interested in Section 8 properties. Here are the key objections and the corresponding data to address them.
- Will FMR $1400 (zip FY 2024) cover the mortgage on a $390,137 home? According to the data from fmr.fyi, the Fair Market Rent (FMR) for a 1-bedroom unit in ZIP 21620 for FY 2026 is $1,450. However, this does not directly cover the mortgage on a $390,137 home. To better understand the financial feasibility, we need to calculate the maximum purchase price that aligns with the FMR. Using the provided purchase price calculator, the maximum purchase price for a 2-bedroom unit with an FMR of $1,770 would be approximately $201,105, considering a down payment of $40,221 and a loan amount of $160,884. This suggests that a $390,137 home would require a higher rent to cover the mortgage, which is beyond the FMR for this area.
- Is there enough renter demand at 28.0%? The data does not provide a direct percentage of renter demand for ZIP 21620. However, the FMR data indicates that the market rent for 1-bedroom units is $1,790, which is higher than the FMR of $1,450. This suggests that there might be a competitive rental market, but it does not confirm the specific demand percentage. Landlords should research local rental vacancy rates and tenant demographics to assess demand accurately.
- Will vouchers keep pace with $1,375 market rents? The FMR for a 2-bedroom unit in ZIP 21620 for FY 2026 is $1,770, which exceeds the market rent of $1,375. This means that voucher payments are likely to cover the market rent, providing a stable income for landlords. However, it is important to note that local housing authorities may set payment standards above or below HUD's published FMR, so it is advisable to confirm the specific rules of the local program.
In conclusion, while the FMR for ZIP 21620 offers some stability for rental income, the financial feasibility of purchasing a $390,137 home solely based on Section 8 rents is questionable. Additionally, the specific demand percentage is not provided in the data, and landlords should conduct further research to ensure they have a clear understanding of the local rental market conditions.
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.