Location: Kent County, MD | Metro: Kent 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 | $1,050 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $2,180 |
| 5 Bedrooms | $2,529 |
| 6 Bedrooms | $2,832 |
| 7 Bedrooms | $3,059 |
| 8 Bedrooms | $3,212 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $270,089 | 0.49% | F |
| 3BR | $1,710 | $369,507 | 0.46% | F |
| 4BR | $2,180 | $491,970 | 0.44% | F |
U.S. Census Bureau data (2024)
The ZIP code 21661, located in Rock Hall, MD, within the Kent County metro area, presents a favorable environment for Section 8 investors. The HUD Fair Market Rent (FMR) for the metro scope in fiscal year 2026 is set at $1,360. This figure is notably higher than the reported market rent of $1,000, based on Census ACS data. This discrepancy indicates that voucher tenants will cashflow positively at the FMR rate, making this location attractive for those seeking stable rental income.
The median home value in the area is $358,342, which, when compared to the average market rent of $1,000, yields a rent-to-price ratio of approximately 0.28%. This suggests that the rental market is relatively undervalued in comparison to the property values, potentially offering opportunities for both cashflow and appreciation.
Regarding the dynamics of the local real estate market, recent data shows that the median days on market (DOM) is 105 days, indicating a somewhat competitive market where properties take longer to sell. However, there is no specific mention of the percentage of price cuts shared during the selling process. These factors are less relevant for long-term rental investors but are important considerations for those looking to flip properties.
The strongest investor angle in ZIP 21661 is cashflow, given the positive difference between the HUD FMR and the market rent. This makes it an ideal location for landlords and small-portfolio investors seeking reliable and above-average rental income.
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.