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 | $1,030 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $269,867 | 0.55% | F |
| 3BR | $1,980 | $329,350 | 0.6% | D |
| 4BR | $2,220 | $448,833 | 0.49% | F |
| 5BR | $2,575 | $535,790 | 0.48% | F |
U.S. Census Bureau data (2024)
The investment landscape in ZIP 21742, located in Paramount-Long Meadow, MD, presents several challenges for landlords and small-portfolio investors considering Section 8 participation. One significant issue is tenant turnover. The market rent stands at $1,608, while the Fair Market Rent (FMR) for FY 2024 is set at $1,390. This discrepancy can lead to higher turnover rates as tenants who qualify for Section 8 may struggle to afford the difference between the FMR and market rent. Additionally, vacancy exposure is a concern, with an average Days on Market (DOM) of 27 days. This short period suggests that properties may remain vacant longer than desirable, impacting cash flow and profitability.
The area's typical home value is $346,224, while the median household income is $86,288. These figures indicate a potential for deferred maintenance issues, as residents may find it difficult to cover the costs of necessary repairs and improvements. Landlords must be prepared to manage these maintenance needs proactively to avoid costly delays and potential safety hazards.
Despite these risks, the high renter share of 31.0% in the area typically translates into robust demand for rental properties, including those accepting Section 8 vouchers. This high concentration of renters often ensures a steady stream of qualified applicants, which can mitigate some of the risks associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.