Location: Washington-Arlington-Alexandria, DC | 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 | $1,300 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,910 | $511,887 | 0.37% | F |
| 4BR | $2,250 | $616,936 | 0.36% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 21755 within the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area reveals several key insights for landlords and small-portfolio investors.
First, let's address whether the rent math works. The Fair Market Rent (FMR) for ZIP 21755 in fiscal year 2024 is set at $1,260, while the Census ACS indicates a market rent of $1,265. This minor difference suggests that the rent is nearly aligned with the FMR, making it feasible for tenants eligible under Section 8 to cover the majority of the rental cost. Landlords can expect minimal out-of-pocket expenses for vacancies covered by Section 8 vouchers.
Regarding acquisition affordability, the median home value in ZIP 21755 is $571,826. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts indicates that the housing market is stable but not highly liquid. This means that purchasing properties might be challenging due to limited inventory and potentially higher competition among buyers.
On the topic of tenant demand, ZIP 21755 has a total population of 5,909, with 13.4% being renters. Given the relatively small population size, the number of potential tenants is modest. Nevertheless, the demand for rental units is present, and the stability of the area could attract tenants seeking secure housing options.
In conclusion, the rent math in ZIP 21755 is favorable for Section 8 participation, with the market rent closely matching the FMR. Acquisition of properties is less straightforward due to the high median home value and lack of liquidity metrics, suggesting a competitive market. Tenant demand is steady, though limited by the small population size. For landlords and small-portfolio investors, ZIP 21755 presents a balanced opportunity where the primary challenge lies in acquiring properties rather than finding tenants or managing rent discrepancies.
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.