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 | $1,140 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,840 | $338,572 | 0.54% | F |
| 4BR | $2,490 | $411,904 | 0.6% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,430 for the metro area in fiscal year 2026 can cover the mortgage on a home priced at $338,597. According to the real estate market data, Zillow lists 25 homes for sale in ZIP 21655, which indicates that the housing stock is relatively limited. This scarcity could potentially support higher rental values, but it also means competition among potential renters might be intense. To accurately assess if the FMR will cover the mortgage, one would need to know the prevailing interest rates and the specific terms of the mortgage.
The second objection could be related to the renter demand in ZIP 21655, which stands at 16.0%. This percentage suggests that a significant portion of the population in this area is interested in renting. However, the data from Trulia shows that there are only 42 pet-friendly houses for rent in the area, indicating that while overall demand might exist, specialized demand (such as for pet-friendly housing) is lower. The limited number of rental properties listed suggests that there might be opportunities for landlords to cater to niche markets, but it also points to a smaller pool of available rentals compared to other areas.
An investor might also be concerned about whether housing vouchers will keep up with the market rents of $1,380. While the FMR is slightly higher at $1,430, the actual voucher amounts issued by local housing authorities can vary. There isn't specific data indicating how closely these vouchers align with market rents in ZIP 21655. It's important to note that voucher programs often adjust their payments based on the local cost of living, but delays in adjustments can occur. Landlords should consider the possibility of receiving less than the full market rent when relying on vouchers.
In summary, while the data provides insights into the rental market dynamics and the percentage of renter demand in ZIP 21655, it does not fully resolve all concerns. An investor must consider external factors such as mortgage terms and the responsiveness of voucher programs to local market conditions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.