Location: Caroline County, MD | Metro: Baltimore-Columbia-Towson, MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,350 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,250 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,930 for ZIP code 21649 can sufficiently cover the mortgage on a home valued at $314,278. To address this, we must consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly payment on a $314,278 home would be approximately $1,570, including principal, interest, taxes, and insurance. Therefore, the FMR of $1,930 does indeed exceed the expected mortgage payment, providing a buffer for maintenance and other costs.
The second objection could be around the level of renter demand in the area, which stands at 16.8%. This percentage represents the proportion of households that are renters. While this figure is lower than some areas with higher concentrations of renters, it still indicates a significant market presence. The key here is to understand the local rental dynamics; if the area has a steady influx of renters due to job opportunities or proximity to urban centers, the demand is likely to remain consistent. However, the data alone does not provide insights into the future trends or stability of the rental market in 21649, so further analysis of local economic factors and housing supply would be advisable.
Lastly, an investor might wonder if Housing Choice Vouchers will keep up with the market rents of $2,105. According to the data, the average voucher amount is typically lower than market rents, but it's crucial to know how much of a subsidy is available. In 21649, vouchers are designed to bridge the gap between what low-income families can afford and the FMR. If the voucher amount is close to the difference between the market rent and the FMR, it can effectively support tenants in affording homes priced at the market level. For instance, if a voucher covers $175 towards the market rent, the tenant would only need to contribute an additional $155 to meet the $2,105 rent. This scenario makes voucher-supported rentals viable, though the exact voucher amount isn't specified in the provided data.
In summary, the FMR of $1,930 in ZIP 21649 is sufficient to cover the mortgage on a home valued at $314,278. The renter demand at 16.8% suggests a stable market, though deeper analysis is recommended. Lastly, while the precise voucher amounts aren't detailed, they are structured to help low-income families meet market rents, making the area attractive for those willing to participate in the voucher program.
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.