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 | $1,010 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,730 | $297,295 | 0.58% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 21837, located in Salisbury, MD, does not work in favor of landlords. The Fair Market Rent (FMR) set at $1420 for fiscal year 2024 is significantly higher than the actual market rent reported by the Census ACS, which stands at $1,115. This discrepancy means that landlords may struggle to find tenants willing to pay the FMR rate, leading to potential vacancies.
Acquisition in this area is somewhat affordable. The median home value is $293,051, indicating that purchasing properties could be manageable for investors with a budget in this range. However, the lack of data on days on the market (DOM) and the percentage of homes that require price cuts makes it difficult to assess how quickly and easily these properties can be acquired. Landlords should proceed with caution until more detailed acquisition trends are available.
Tenant demand in ZIP 21837 is modest. With a total population of 2,891, the renter share is 12.8%, suggesting a relatively small pool of potential tenants. Given the mismatch between the FMR and the actual market rent, landlords might face challenges in attracting enough tenants to fill their units at the desired rental rates.
Verdict: Investing in ZIP 21837 presents a mixed picture. While the cost of acquiring properties is reasonable, the significant gap between FMR and market rent, along with limited tenant demand, poses risks. Landlords should carefully consider setting rental prices below the FMR to attract tenants and ensure occupancy rates. Additionally, further research into local real estate trends is advised before making investment decisions.
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.