Location: Hagerstown, MD | 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 | $920 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $246,471 | 0.54% | F |
| 3BR | $1,760 | $343,347 | 0.51% | F |
| 4BR | $1,980 | $458,739 | 0.43% | F |
U.S. Census Bureau data (2024)
The ZIP code 21795, located in the Williamsport, MD, Hagerstown, MD HUD Metro FMR Area, serves as a solid cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) set at $1210 for fiscal year 2024 and the actual market rent, which stands at $1,301 per month. The median home value in this area is $341,837, indicating that the housing stock is relatively affordable.
The cash-flow anchor role is further supported by the fact that landlords can expect consistent rental income through the Section 8 program, which is designed to ensure that tenants pay only a portion of their income towards rent. Given the market rent is higher than the FMR, landlords can still achieve positive cash flow while participating in the program. This makes ZIP 21795 an attractive option for those looking to stabilize their rental income streams.
While the area has a 0.2% price-cut share and a median income of $87,864, these factors do not suggest strong appreciation potential or high tenant turnover rates. The 32.0% renter share indicates a moderate level of demand for rentals, but it does not point towards rapid increases in property values or rental rates.
In summary, ZIP 21795 is best suited as a cash-flow anchor due to the favorable spread between the FMR and market rent. Landlords can rely on steady, predictable income without the risk of rapid changes in the local market dynamics.
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.