Location: Dorchester County, MD | Metro: Dorchester County, MD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,110 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
U.S. Census Bureau data (2024)
The classification of ZIP code 21648 hinges on the specific metrics of yield and stability, which are crucial for landlords and small-portfolio investors. The yield potential in this area is driven by the Fair Market Rent (FMR) for the metro region in fiscal year 2026, which stands at $1,490. This figure represents the average rent price for a rental unit in the area, indicating a robust income stream for properties participating in the Section 8 program.
However, the market rent figure is not available, suggesting that there might be limited data or that the market dynamics are not fully understood. This uncertainty can impact investment decisions, particularly for those looking to gauge the potential for higher yields beyond government-subsidized programs. Despite this, the median home value of $303,083 provides a benchmark for property values, which can influence the cost of acquiring a rental property in this ZIP code.
Moving onto stability, the metrics paint a mixed picture. With only 8.6% of the population being renters, the demand for rental properties is relatively low. This can indicate less competition among landlords but also suggests a smaller pool of potential tenants. The lack of data on the days on market (DOM) and income levels further complicates the assessment of stability, as these factors are key indicators of how quickly properties can be rented out and the financial health of the tenant base.
In conclusion, ZIP code 21648 appears to be neither a high-yield/low-stability flip-style market nor a steady-cashflow zone. Instead, it falls into a category where the yield is moderate due to the FMR of $1,490, but the stability is questionable given the limited data on market conditions and tenant demographics. The high median home value indicates a potentially expensive market entry point, which must be weighed against the FMR and the percentage of renters. For investors, this suggests a need for careful consideration of the risks and rewards associated with this ZIP code, focusing on the available data points to make informed decisions.
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.