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 | $930 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,630 | $278,507 | 0.59% | F |
| 4BR | $1,970 | $351,607 | 0.56% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 21643 in the Dorchester County, MD metro area reveals a favorable environment for cashflow generation. The HUD Fair Market Rent (FMR) for the metro scope in fiscal year 2026 is set at $1,240, which is significantly higher than the average market rent of $909 based on Census ACS data. This means that voucher tenants can easily cashflow at the FMR rate without requiring premium units.
To further analyze the investment potential, consider the median home value in the area, which stands at $275,910. Using this figure, we can calculate a rent-to-price ratio of approximately 0.4%, indicating that rental income is relatively low compared to property values. However, given the disparity between the HUD FMR and the actual market rent, investors can expect to generate positive cashflow from Section 8 vouchers.
In terms of the days on market (DOM) and price-cut share, both metrics are not available for this ZIP code. Nonetheless, the strong cashflow potential outweighs the lack of these specific indicators. Investors should focus on the robust cashflow opportunities rather than speculative appreciation or stability concerns.
The strongest investor angle in ZIP 21643 is undoubtedly cashflow, as the high FMR relative to market rents ensures a reliable source of income for landlords and small-portfolio investors.
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.