Location: Salisbury, MD | Metro: Salisbury, 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 | $1,230 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,090 | $303,742 | 0.69% | D |
| 4BR | $2,100 | $405,423 | 0.52% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 21830 is centered around the significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1030, while the Census American Community Survey (ACS) indicates that the market rent is $1,599. This represents a gap of $569 per month, or approximately 55.2% below the market rate.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors must consider the costs associated with housing voucher tenants. Voucher holders pay only a portion of their income towards rent, which can be as low as 30%. In ZIP 21830, where the median income is $112,991, the tenant's contribution would be roughly $2,825 per month. However, the Housing Authority covers the difference between the tenant's contribution and the FMR, not the market rate. Therefore, landlords might see a shortfall in expected rental income, which could affect overall portfolio yields.
In ZIP 21830, with a median home value of $315,867 and only 12.5% of residents being renters, the market leans heavily towards homeownership. This context suggests that rental properties, especially those participating in the Section 8 program, operate under a different set of financial principles compared to the broader real estate market. The discrepancy between FMR and market rents highlights the challenge of maintaining profitability while serving a vital community need.
To summarize, the FMR of $1030 is substantially less than the market rent of $1,599 in ZIP 21830. Landlords should prepare for a potential revenue loss of $569 per unit per month if they choose to participate in the Section 8 program. This analysis is anchored in the ZIP code's specific context, where the rental market is a niche segment of a predominantly homeowner-driven economy.
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.