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 | $900 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $288,087 | 0.44% | F |
| 3BR | $1,670 | $358,653 | 0.47% | F |
| 4BR | $1,890 | $429,795 | 0.44% | F |
U.S. Census Bureau data (2024)
ZIP 21783, located in Smithsburg, MD, within the Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area, serves as an ideal cash-flow anchor for any Section 8 portfolio strategy. The Fair Market Rent (FMR) for FY 2024 stands at $1340, significantly higher than the market rent of $1,070. This $270 difference ensures a steady and reliable income stream for landlords participating in the Section 8 program.
The median home value in ZIP 21783 is $371,231, which places it in a moderate-value bracket for the region. However, the key factor here is the renter share, which is 18.3%, indicating a substantial portion of the population relies on rental housing. Given that the median income is $100,750, residents have the financial stability to maintain consistent rental payments, further solidifying the cash flow reliability.
The 0.2% price-cut share and the N/A-day days on market (DOM) suggest that properties in this ZIP code do not often require significant discounts or extended listing periods to secure tenants. This indicates a strong demand for rental properties, reducing vacancy risks and ensuring continuous income.
In conclusion, ZIP 21783 is best positioned as a cash-flow anchor due to the substantial spread between the FMR and market rent, combined with a stable tenant base and minimal need for price adjustments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.