Location: Washington-Arlington-Alexandria, DC | Metro: Baltimore-Columbia-Towson, MD MSA
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 | $2,080 |
| 1 Bedroom | $2,200 |
| 2 Bedrooms | $2,580 |
| 3 Bedrooms | $3,250 |
| 4 Bedrooms | $3,720 |
| 5 Bedrooms | $4,315 |
| 6 Bedrooms | $4,833 |
| 7 Bedrooms | $5,220 |
| 8 Bedrooms | $5,481 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,580 | $398,089 | 0.65% | D |
| 3BR | $3,250 | $508,140 | 0.64% | D |
| 4BR | $3,720 | $724,489 | 0.51% | F |
| 5BR | $4,315 | $850,262 | 0.51% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord investing in ZIP code 21771 in Mount Airy, MD, include significant tenant turnover. The market rent stands at $2,252, whereas the Fair Market Rent (FMR) for FY 2024 is set at $1,990, indicating that tenants might struggle to keep up with higher rents, leading to frequent moves. This disparity can cause financial instability and increased administrative costs associated with tenant screening and lease renewals.
Vacancy exposure is another concern. With an average Days on Market (DOM) of just 6 days, landlords must be prepared to act quickly to secure new tenants. However, this also implies a competitive rental market where delays in finding suitable tenants can lead to extended vacancy periods, reducing income and increasing holding costs.
A third risk is deferred maintenance. Given the typical home value of $638,091 and a median household income of $157,302, landlords should anticipate the need for regular upkeep and repairs. Tenants may not have the financial means to cover such expenses, leaving landlords responsible for maintaining the property's condition. Failure to do so can result in regulatory penalties and decreased property value.
Despite these risks, the high renter share of 6.0% suggests a robust demand for rental properties. In such areas, there tends to be a higher concentration of voucher holders looking for housing, which can mitigate some of the financial risks. Landlords can leverage this demand to ensure steady occupancy rates and maintain consistent cash flow.
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.