Location: Hagerstown, MD | Metro: Hagerstown, MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
U.S. Census Bureau data (2024)
The ZIP code 21733 presents several challenges for landlords considering Section 8 investments. Firstly, tenant turnover is a significant concern. The Fair Market Rent (FMR) for FY 2024 in this area is set at $1430, but without a specific market rent figure, it's unclear how this compares to actual rental rates. This discrepancy can lead to higher turnover if tenants find they can afford better housing outside of the voucher program.
Vacancy exposure is another issue. With an unknown number of days on the market (DOM), landlords cannot accurately predict how long it might take to fill a vacancy. This uncertainty can be costly, especially when combined with the potential for deferred maintenance. Given that the typical home value in this ZIP is $405,294, maintaining properties to meet Section 8 standards can be financially burdensome. The median income of $109,896 suggests that many residents may struggle to cover the gap between their income and the full rent, further complicating the financial viability of these properties.
However, the high renter share of 17.4% in ZIP 21733 indicates a strong demand for rental housing, which typically translates into a higher demand for Section 8 vouchers. This robust rental market can help mitigate some of the risks associated with tenant turnover and vacancy exposure, as there will likely be a steady stream of applicants seeking affordable housing options.
In conclusion, the risks in ZIP 21733 are moderate for a first-time Section 8 landlord due to the uncertainties around market rent and DOM, coupled with the costs of property maintenance. Nevertheless, the high renter density provides a buffer against prolonged vacancies and supports a steady flow of 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.