Location: Dorchester County, MD | Metro: Dorchester County, MD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
U.S. Census Bureau data (2024)
The median income in ZIP code 21664 stands at $82,721, which sets a baseline for evaluating the financial feasibility of renting in this area. At a market rate of $1,175 per month, as reported by the Census ACS, a household earning the median income would spend approximately 17.4% of their gross monthly income on rent alone. This is below the generally recommended threshold of 30%, indicating that the majority of households can comfortably afford market-rate rents without significant strain.
However, comparing the market rate to the Fair Market Rent (FMR) standard set at $1,310 for the fiscal year 2026 reveals a different picture. The FMR is higher than the market rate, suggesting that Section 8 vouchers may not fully cover the costs landlords typically charge for market-rate rentals. This could make accepting vouchers less attractive financially, as landlords might have to absorb the difference between the voucher amount and the actual market rate.
In ZIP 21664, with a population of 635 and 30.0% of residents being renters, the competition for rental properties is moderate. Landlords should be aware that while the market rate is affordable for most households, the voucher payment standard exceeds it, potentially increasing demand for properties that accept vouchers. This scenario creates an affordability gap where landlords must decide whether to cater to voucher recipients or focus on cash-paying tenants who can meet market rates.
The takeaway for landlords considering voucher versus cash-pay strategies is clear: accepting vouchers may attract a segment of the rental market but will likely result in lower overall rental income compared to market rates. Landlords should weigh the benefits of guaranteed payments against the potential for higher income from cash-paying tenants. Given the population size and the proportion of renters, diversifying the tenant mix could be a prudent strategy to ensure steady occupancy and manage risk effectively.
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.