Location: Baltimore-Columbia-Towson, MD | Metro: Baltimore-Columbia-Towson, MD MSA
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 | $1,930 |
| 1 Bedroom | $2,060 |
| 2 Bedrooms | $2,540 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,530 |
| 5 Bedrooms | $4,095 |
| 6 Bedrooms | $4,586 |
| 7 Bedrooms | $4,953 |
| 8 Bedrooms | $5,201 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 4BR | $3,530 | $971,053 | 0.36% | F |
| 5BR | $4,095 | $1,309,842 | 0.31% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 21738 hinges on its financial metrics, which reveal a unique blend of potential and risk. The Fair Market Rent (FMR) for the area stands at $2490 for the fiscal year 2024, while the median home value is notably lower at $995,376. This suggests that rental yields could be substantial, given the disparity between the two figures.
Stability indicators, however, paint a different picture. The percentage of renters is relatively low at 1.8%, and the median household income is listed at $250,001. These factors imply a somewhat stable environment but also indicate that the rental market might not be as robust as in areas with higher percentages of renters.
To further assess the stability, we would need the average days on the market (DOM), which is currently not available. However, the income figure provides some insight into the economic health of the area, suggesting that tenants are likely to have sufficient means to cover rent, which is a positive sign for maintaining steady cash flow.
Based on these figures, ZIP 21738 appears to be a zone offering moderate potential for high yields due to the favorable FMR to home value ratio. However, it does not fully qualify as a high-yield/low-stability 'flip-style' market because the low percentage of renters and decent income levels contribute to a level of stability. It's best categorized as a middle-ground option where the investment strategy should balance the pursuit of high returns with considerations for market volatility and tenant reliability.
In conclusion, the data points towards an opportunity for landlords and small-portfolio investors who are willing to engage in a market that offers good rental income but requires careful management to maintain a steady cash flow. The investment in this ZIP code should be approached with a strategic mindset, leveraging the strong rental yield while being mindful of the relatively low demand for rentals and ensuring that the properties attract and retain reliable tenants.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.