Location: Dorchester County, MD | Metro: Dorchester 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 | $1,460 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,410 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,410 | $309,161 | 0.78% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 21631 in the Dorchester County, MD metro area reveals several key points. The HUD Fair Market Rent (FMR) for the area is set at $1,720 for the fiscal year 2026, which is higher than the market rent reported by the Census ACS at $1,541. This means that voucher tenants will generally cashflow at the FMR rate, providing a positive financial outlook for landlords.
To further understand the investment potential, consider the median home value in the area, which stands at $338,079. Using this figure, we can calculate a rent-to-price ratio of approximately 0.51%, indicating a relatively stable rental market compared to property values. This suggests that properties in ZIP 21631 are not overpriced relative to their rental income potential.
The data does not provide the median days on market (DOM) or the percentage of homes that experience price cuts, but given the positive cashflow potential and the stable rent-to-price ratio, it is likely that the rent-versus-buy dynamics favor renting. This implies that landlords and small-portfolio investors would have an easier time finding tenants willing to pay the FMR rate without significant vacancy periods or the need to lower asking rents.
The strongest investor angle in this market is cashflow. With voucher tenants paying above the market rent, investors can expect steady and reliable income from their properties in ZIP 21631. This makes the area particularly attractive for those looking to generate consistent rental income through Section 8 participation.
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.