Location: Talbot County, MD | Metro: Talbot County, MD
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 | $1,300 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,890 |
| 5 Bedrooms | $3,352 |
| 6 Bedrooms | $3,754 |
| 7 Bedrooms | $4,054 |
| 8 Bedrooms | $4,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,400 | $420,196 | 0.57% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 21625, located in Talbot County, MD, reveals several key points that are crucial for landlords and small-portfolio investors.
The rent math does not work favorably in this area. The Fair Market Rent (FMR) for the fiscal year 2026 is set at $1,690, while the actual market rent based on Census ACS data is $1,540. This indicates that landlords might struggle to achieve the FMR due to lower prevailing market rates, which could result in reduced rental income compared to what is deemed fair by federal standards.
Acquisition is relatively affordable in ZIP 21625. With a median home value of $442,645, purchasing property here is within reach for many investors. However, the lack of available data on days on market (DOM) and the percentage of homes needing a price cut suggests that the local real estate market might be less liquid or competitive. This could imply either a stable market where homes are sold quickly at asking prices or a less active market with fewer transactions, both of which have implications for investment strategy.
Tenant demand is modest in this ZIP code. The total population stands at 1,766, with only 15.1% being renters. This low renter share means that there is limited demand for rental properties, which could translate into challenges in finding tenants willing to pay the market rate, let alone the higher FMR.
Verdict: ZIP 21625 offers an affordable entry point for acquiring real estate, but the mismatch between market rents and FMR, combined with a low renter share, suggests that rental investments here may not yield high returns. Landlords should carefully consider these factors before investing, as the potential for profitability is constrained by both the rental market dynamics and the limited number of prospective tenants.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.