Location: Allegany County, MD | Metro: Allegany County, MD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
In ZIP code 21766, there are several potential issues that could arise for landlords considering Section 8 investments. Tenant turnover is a significant concern due to the disparity between the market rent at $736 and the Fair Market Rent (FMR) of $910 for fiscal year 2024. This gap suggests that tenants might seek higher rental subsidies, leading to frequent moves as they find properties that better match their budget. Vacancy exposure is another critical factor, especially since the days on market (DOM) is listed as N/A, indicating a lack of recent data on how quickly properties are rented out. This uncertainty can be costly, as prolonged vacancies mean lost income and increased maintenance costs.
The typical home value in ZIP 21766 is $221,909, while the median household income is $62,054. These figures highlight a substantial deferred-maintenance exposure. With incomes lower than home values, many residents may struggle to afford necessary repairs and maintenance, potentially leading to property degradation over time if not managed properly. However, these risks must be weighed against the high renter share of 30.4%, which indicates a dense population of renters. High renter density typically translates into higher demand for rental vouchers, making it easier to fill vacancies with Section 8 tenants who provide consistent rental income through government subsidies.
The analysis concludes that despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter share in ZIP 21766 creates a robust market for Section 8 rentals. Landlords can mitigate some of these risks by selecting well-maintained properties and being prepared to manage turnover effectively. The overall verdict for a first-time Section 8 landlord in this area is moderate risk.
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.