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 | $1,230 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,130 | $349,175 | 0.61% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 21623 is centered around the significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1,670, while the Census American Community Survey (ACS) reports that the market rent stands at $1,233. This means there is a gap of $437, or approximately 35%, between what landlords can charge under the Section 8 program and the prevailing market rate.
Given that the FMR exceeds the market rent, it becomes evident that voucher tenants represent a yield play for landlords and small-portfolio investors in this area. The higher allowable rent under Section 8 provides an opportunity to generate a greater return on investment compared to renting out properties at the current market rate. This is particularly attractive in a ZIP code where only 15.2% of residents are renters, indicating a relatively low competition for rental units among the general population.
The median home value in ZIP 21623 is $446,707, which places it in a moderate to high-value residential area. The median income of $78,345 suggests that the majority of the population can afford homeownership, further supporting the idea that rental properties are less common and potentially more profitable when aligned with Section 8 guidelines.
However, it's important to note that accepting housing vouchers comes with its own set of considerations. Landlords must ensure compliance with HUD regulations, which can be stringent. Additionally, the process of managing voucher tenants involves regular inspections and paperwork, which may add operational costs and time. Despite these factors, the substantial difference between FMR and market rent in ZIP 21623 makes it a compelling option for those looking to maximize their rental income.
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.