Location: Dorchester County, MD | Metro: Caroline 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 | $920 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $178,408 | 0.68% | D |
| 3BR | $1,520 | $243,416 | 0.62% | D |
| 4BR | $2,010 | $272,046 | 0.74% | D |
U.S. Census Bureau data (2024)
The Federalsburg, MD ZIP code 21632, located within the Dorchester County, MD metro area, presents a unique profile when compared against typical ZIP codes in the county. With a Fair Market Rent (FMR) of $1,210 for fiscal year 2026, it slightly exceeds the average market rent of $1,031, indicating a higher rental demand or cost structure in the area. However, the median home value of $242,429 is notably lower than the county's median, suggesting that 21632 might be considered a value pocket for real estate investment.
The 36.9% renter share in 21632 diverges significantly from the county-wide average, which typically hovers around 20-30%. This high percentage of renters, combined with relatively low home values, often signifies an attractive opportunity for landlords and small-portfolio investors looking to capitalize on areas with a strong tenant base. Such characteristics can indicate a concentration of Section 8 housing or other subsidized rental units, which can provide a stable income stream for property owners.
In summary, ZIP code 21632 stands out as a value pocket within the Dorchester County, MD metro, offering a balance between higher rental rates and lower property values. The significant renter population further enhances its appeal for those interested in rental investments, particularly in the context of Section 8 housing.
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.