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 | $960 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $356,540 | 0.35% | F |
| 3BR | $1,580 | $371,670 | 0.43% | F |
| 4BR | $1,750 | $445,927 | 0.39% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 21787 (Taneytown, MD) does not align favorably. The HUD Fair Market Rent (FMR) for the area is set at $1,420 for fiscal year 2024, while the Census ACS indicates a market rent of $1,061. This discrepancy suggests that landlords might struggle to achieve the higher rent benchmark without significant renovations or amenities.
Acquisition in this ZIP code is relatively affordable, given the median home value stands at $396,214. However, the lack of data on days on market (DOM) and the low 0.2% price-cut share indicate a stable but not highly dynamic market for property purchases. This stability can be seen as a positive factor for long-term investment, as it implies less volatility and potentially lower risks.
Tenant demand in Taneytown is moderate. With a total population of 11,645, the renter share is 21.6%, which translates to approximately 2,514 renters. This number is substantial enough to support rental properties but may limit the potential for high occupancy rates during economic downturns or increased supply of rental units.
In conclusion, ZIP 21787 presents a mixed picture for landlords and small-portfolio investors. While the median home value makes acquisitions relatively affordable, the mismatch between the HUD FMR and the actual market rent could pose challenges for achieving desired rental income levels. Tenant demand is present, though not exceptionally robust, indicating a need for competitive pricing and quality offerings to attract and retain tenants. Overall, the area offers a stable environment for those willing to manage their expectations regarding rental yields and invest in properties that meet market standards.
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.