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 | $1,590 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,090 |
| 3 Bedrooms | $2,610 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,090 | $354,312 | 0.59% | F |
| 3BR | $2,610 | $517,658 | 0.5% | F |
| 4BR | $2,910 | $628,624 | 0.46% | F |
| 5BR | $3,376 | $903,587 | 0.37% | F |
U.S. Census Bureau data (2024)
ZIP code 21638, located in Grasonville, MD within the Baltimore-Columbia-Towson, MD MSA, presents a unique profile compared to the typical ZIP codes in this metropolitan area. The Fair Market Rent (FMR) for ZIP 21638 is set at $2460 for fiscal year 2024, which is notably higher than the average market rent of $1,692. This suggests that there might be an overestimation in the FMR calculation, or it could indicate that the area has higher rental demands due to specific amenities or services.
The median home value in ZIP 21638 is $571,962, which is above the average for the Baltimore-Columbia-Towson MSA. This places 21638 in a premium sub-market category, where property values exceed the metro average, reflecting a desirable location with potentially better infrastructure, schools, and lifestyle offerings.
However, the renter share in ZIP 21638 is relatively low at 15.5%. This figure is below what is typically seen in urban areas within the Baltimore-Columbia-Towson MSA, suggesting that homeownership is more prevalent here. The combination of a below-average renter share and above-average home values indicates that 21638 is not a traditional value pocket for Section 8 participants. Value pockets usually have a higher renter share and lower home values.
Despite the premium nature of the housing market in 21638, the disparity between the FMR and the actual market rent provides some insight into potential opportunities for landlords. Landlords in this area can leverage the higher FMR to secure Section 8 tenants, although the overall lower renter share means fewer Section 8 participants compared to other ZIP codes in the MSA. This situation may result in a competitive advantage for those who can attract Section 8 tenants, given the higher subsidy amount relative to local market rents.
In conclusion, ZIP 21638 stands out as a premium sub-market within the Baltimore-Columbia-Towson MSA, characterized by higher home values and FMRs. However, the lower renter share suggests it is not a primary target for Section 8 participants. For landlords and small-portfolio investors, the area offers a mix of challenges and opportunities, with the potential for higher rental income from Section 8 subsidies but a smaller pool of eligible tenants.
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.