Location: Talbot County, MD | Metro: Talbot County, MD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,090 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,410 for ZIP 21647 will sufficiently cover the mortgage on a $500,575 home. To assess this, let's consider recent median home values and typical mortgage payments.
The median home value in ZIP 21647 is approximately $526,189 according to recent data. Assuming a 20% down payment, the mortgage amount would be around $420,460. Using current mortgage rates, the monthly principal and interest payment on a 30-year fixed-rate mortgage would be roughly $1,850. However, this calculation does not include property taxes, insurance, and other potential costs. These additional expenses could bring the total monthly mortgage payment closer to $2,100 or higher.
This raises concerns since the FMR of $1,410 falls below the expected mortgage payment. To cover the mortgage, landlords would need to rely on the tenant's share of the rent or seek alternative funding sources.
Another objection is whether there is sufficient renter demand at 0.0%. According to market intelligence, ZIP 21647 has a stable market with homes selling within 100 days on average. While the renter demand figure appears to be zero, this may be due to limited data availability. It's important to note that a stable market generally indicates steady demand, even if it's not explicitly quantified.
The final concern is whether vouchers will keep pace with market rents. Unfortunately, the data does not provide a clear comparison between voucher payment standards and market rents for ZIP 21647. HUD's Small Area Fair Market Rents (SAFMR) aim to reflect neighborhood-specific rents, but the exact relationship between voucher payments and market rents remains unclear without further analysis. It's crucial for investors to monitor local trends and consult with their local Public Housing Agency (PHA) to ensure adequate compensation.
In summary, while the FMR of $1,410 may not fully cover the mortgage payment on a $500,575 home, the stable market conditions suggest steady demand. However, the lack of specific data on voucher adequacy leaves some uncertainty regarding future rent coverage.
Data Sources: FMR data from HUD (2027). 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.