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 | $1,310 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,940 | $406,268 | 0.48% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 21780 reveals a significant gap between the Fair Market Rent (FMR) set at $1530 for fiscal year 2024 and the actual market rent of $1,374 according to the Census ACS data. This gap amounts to $156, or approximately 11.4%, indicating that landlords can potentially earn above the market average by participating in the Section 8 program.
The higher FMR compared to the market rent suggests that voucher tenants can offer a yield play for landlords. In essence, landlords can charge closer to the FMR rate while still attracting tenants who benefit from the subsidy. This scenario is particularly favorable given the local rental market dynamics where only 27.0% of residents are renters, suggesting a relatively low competition among rental properties.
The median home value in the area stands at $404,078, which is indicative of a somewhat stable housing market. However, the median income of $83,785 implies that many residents may find it challenging to afford market-rate rents without assistance. Therefore, the Section 8 program becomes a viable option for both tenants seeking affordable housing and landlords looking to secure steady rental income.
Landlords should be aware that there are costs associated with housing voucher tenants. These include administrative overheads, potential delays in receiving payments, and compliance with HUD regulations. Despite these considerations, the financial advantage of earning $156 more per month than the market average can offset these costs and provide a solid return on investment.
To summarize, the discrepancy between the FMR and market rent in ZIP 21780 presents an opportunity for landlords to maximize their yields through the Section 8 program. The local context, characterized by a moderate rental population and median income levels, supports the viability of this approach.
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.