Location: Kent County, 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 | $1,230 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,130 | $333,577 | 0.64% | D |
U.S. Census Bureau data (2024)
The ZIP code 21651 presents an interesting scenario for both renters and landlords alike. The median income in this area stands at $74,063, which places considerable pressure on households when it comes to affording the market rate rent of $1,429. To put this into perspective, the monthly housing cost represents nearly 20% of the median annual income, indicating a significant affordability gap for many residents.
Comparatively, the Fair Market Rent (FMR) for ZIP 21651 in fiscal year 2024 is set at $1,500, slightly higher than the current market rate but reflective of potential future adjustments. This suggests that while the market rate is already challenging for some, the FMR provides a benchmark that could be used to negotiate rents with tenants receiving housing vouchers.
Given that 22.2% of the 2,290 population are renters, the competition among landlords is moderate but exists. Landlords must consider the balance between attracting tenants who can pay the market rate and those who rely on housing vouchers. The median income figure implies that a portion of the rental market may struggle with market rates, potentially leading to a preference for subsidized housing options.
For landlords, the strategy should focus on understanding the local tenant demographics. While there is a segment of the population capable of paying the market rate of $1,429, the high proportion of income spent on housing indicates a substantial demand for affordable units. Accepting voucher payments at the FMR of $1,500 can ensure steady occupancy and avoid prolonged vacancies that might occur if relying solely on cash-paying tenants who may find the rent unaffordable.
The takeaway for landlords is clear: diversifying their tenant mix to include those with housing vouchers can stabilize their income streams and improve occupancy rates. It is essential to align with the realities of the local economy and the financial capabilities of the average renter.
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.