Location: Somerset County, MD | Metro: Somerset County, 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 | $1,000 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,770 | $244,330 | 0.72% | D |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 21821 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1290, while the Census American Community Survey (ACS) indicates that the market rent is $1615. This represents a difference of $325 per month, or approximately 25.2% of the FMR.
Given that the FMR is less than the market rent, landlords and small-portfolio investors should be aware of the financial implications of accepting housing voucher tenants. The cost of housing voucher tenants below open-market rates can affect profitability. Specifically, landlords will receive $1290 from the government for a unit that could potentially rent for $1615 on the open market, resulting in a monthly shortfall of $325.
This ZIP code has a rental population of 16.8%, suggesting a moderate demand for rental properties. With a median home value of $203,065 and a median income of $60,341, the financial health of residents is relatively stable, but it does not significantly impact the gap between FMR and market rent.
To summarize, the financial dynamics in ZIP 21821 suggest that landlords who participate in the Section 8 program will face a substantial monthly discount compared to renting their units at market rates. This discount should be factored into any investment strategy when considering the acceptance of housing vouchers.
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.