Location: Hagerstown, MD | Metro: Hagerstown, MD HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 21746 presents several challenges for potential Section 8 landlords. First, tenant turnover can be a significant issue due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $1370 for FY 2024. This difference can lead to frequent changes in occupancy, which can disrupt the stability of rental income. Additionally, vacancy exposure is a concern given the unknown number of days on market (DOM), as prolonged vacancies can result in lost income and increased costs for property maintenance and management.
Deferred maintenance is another risk factor, particularly considering the unknown typical home value and median income in the area. Properties with lower values and incomes may require more extensive repairs and upgrades to meet Section 8 standards, increasing the initial investment required. Moreover, tenants with lower incomes might have difficulty affording necessary utilities and maintenance, leading to potential disputes over the condition of the property.
However, these risks must be weighed against the high proportion of renters in the area, indicated by the unknown percentage of the renter share. High renter density typically correlates with higher demand for housing vouchers, meaning there is likely a robust pool of eligible tenants seeking accommodation through Section 8. This can mitigate some of the risks associated with vacancy and turnover, as landlords are more likely to find and retain qualified tenants.
In conclusion, the ZIP code 21746 poses a moderate risk for a first-time Section 8 landlord, primarily due to the uncertainties surrounding market conditions and the need for potential property improvements, but also because of the strong likelihood of finding tenants who will use their vouchers to secure housing.
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.