Location: Baltimore-Columbia-Towson, MD | Metro: Baltimore-Columbia-Towson, MD MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,550 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $2,120 |
| 3 Bedrooms | $2,690 |
| 4 Bedrooms | $2,970 |
| 5 Bedrooms | $3,445 |
| 6 Bedrooms | $3,858 |
| 7 Bedrooms | $4,167 |
| 8 Bedrooms | $4,375 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 21723 in Cooksville, MD, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for FY 2024 is set at $2490, while the market rent is currently unavailable. This gap can be critical for landlords and small-portfolio investors.
In ZIP 21723, only 4.7% of residents are renters, indicating a predominantly owner-occupied community. The median home value stands at $926,936, and the median household income is $241,250. These figures suggest that the area is relatively affluent and may have a limited pool of potential Section 8 tenants.
If the FMR exceeds the market rent, it means that voucher tenants could offer a higher yield compared to open-market rents. However, if the market rent is higher than the FMR, landlords might face the challenge of accepting lower rents from voucher holders, which could reduce their overall rental income.
Given the context of ZIP 21723, where the median income is already quite high, landlords should consider the financial implications of accepting Section 8 tenants. If the FMR is indeed above the market rent, it presents an opportunity for higher returns. Conversely, if the market rent is higher, landlords need to evaluate whether the benefits of stable tenants outweigh the reduced rental income.
The analysis must also take into account the broader economic conditions. With only 4.7% of the population renting, the demand for rental properties is likely lower. Therefore, landlords should carefully assess the supply and demand dynamics before making decisions about accepting Section 8 tenants.
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.