Location: Talbot County, MD | Metro: Talbot County, MD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,510 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,760 |
| 4 Bedrooms | $3,330 |
| 5 Bedrooms | $3,863 |
| 6 Bedrooms | $4,327 |
| 7 Bedrooms | $4,673 |
| 8 Bedrooms | $4,907 |
U.S. Census Bureau data (2024)
In ZIP 21662, the average home value is currently at $1,091,837, reflecting a 2.2% increase over the past year. This figure is important when considering the feasibility of covering a mortgage on a home of this value. With a Fair Market Rent (FMR) of $1,960 for the metro area in fiscal year 2026, it's reasonable to question whether this amount can adequately support a mortgage payment.
A skeptical investor might ask if the FMR will be sufficient to cover the mortgage on a home valued at $1,091,837. To answer this, let's consider the typical mortgage scenario. Assuming a 20% down payment, the loan amount would be around $873,470. Using a conservative estimate of a 4% interest rate over a 30-year term, the monthly mortgage payment would be approximately $4,200. Clearly, the FMR of $1,960 falls short of this amount, suggesting that landlords or small-portfolio investors would need to supplement their income through other means, such as property appreciation or additional rental units, to ensure profitability.
The second objection concerns the rental demand in ZIP 21662, which stands at 18.9%. An investor might doubt whether this percentage indicates strong enough demand to justify investing in rental properties. While 18.9% is not exceptionally high, it does suggest a moderate level of interest in renting. However, this statistic alone doesn't provide a complete picture of the rental market dynamics, including vacancy rates and competition. For a more comprehensive analysis, additional data points would be necessary.
The final concern revolves around whether housing vouchers will keep pace with the market rent of $2,125. Although voucher amounts are adjusted periodically based on local market conditions, they often lag behind rapid increases in market rents. In ZIP 21662, landlords should be aware that voucher recipients might not cover the full $2,125 rent, necessitating careful financial planning and possibly targeting tenants with higher incomes or alternative funding sources.
To summarize, while the FMR and rental demand percentages offer valuable insights, they do not fully resolve all investment concerns. Landlords must consider supplementary income streams and prepare for potential gaps between voucher amounts and market rents. The data provides a foundation for decision-making but should be supplemented with further research into local economic trends and rental market specifics.
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.