Location: Hagerstown, MD | Metro: Hagerstown, MD HUD Metro FMR Area
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 | $880 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $960 | $148,016 | 0.65% | D |
| 2BR | $1,260 | $223,110 | 0.56% | F |
| 3BR | $1,680 | $285,336 | 0.59% | F |
| 4BR | $1,890 | $390,325 | 0.48% | F |
| 5BR | $2,192 | $463,331 | 0.47% | F |
U.S. Census Bureau data (2024)
Hagerstown’s 21740 ZIP code functions as a historic commercial and transportation hub within Washington County, often recognized for its strategic access to the I-81 corridor and proximity to the broader Baltimore-Washington region. The area retains a strong manufacturing and logistics presence, with major employers such as Volvo Group Powertrain and Meritus Medical Center anchoring the local economy. This mix of industrial stability and regional connectivity creates a solid baseline for rental demand, particularly from workers seeking proximity to these employment centers.
From a cash-flow perspective, the data reveals a tight but manageable spread for voucher investors. The HUD Fair Market Rent (FMR) for a 2-bedroom unit is $1,240, while current market rents (Zillow ZORI) sit at $1,273, creating a narrow gap of just $33. This indicates that voucher payments are highly competitive with private-market rates. With median home values at $288,660 and a 2BR median sale price of $219,233, acquisition costs are reasonable relative to the metro area, though investors should note a median days on market of 69 days, suggesting a moderate sales pace that requires patience on exit.
The tenant pool is substantial, driven by a 44.7% renter share and a median household income of $62,873. While local incomes support the rental market, they also generate significant demand for housing assistance, ensuring a steady stream of voucher applicants. The availability of quality public schooling and established transit options further enhances the appeal for families, contributing to lower turnover rates in this segment of the market.
The strongest investor angle here is stability. The negligible delta between FMR and market rent means investors are not sacrificing income to participate in the Section 8 program. Coupled with the area’s major employers and high renter population, 21740 offers a defensive play where government-backed rents closely mirror market performance, providing reliable yield in a historically grounded economy.
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.