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 | $1,210 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,230 |
| 5 Bedrooms | $2,587 |
| 6 Bedrooms | $2,897 |
| 7 Bedrooms | $3,129 |
| 8 Bedrooms | $3,285 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,120 | $236,236 | 0.9% | C |
U.S. Census Bureau data (2024)
The ZIP code 21838, located in Somerset County, Maryland, represents a strategic opportunity for landlords and small-portfolio investors when considering a Section 8 portfolio. This area should be viewed primarily as a cash-flow anchor. The rationale behind this classification lies in the favorable financial metrics that support stable rental income.
In the fiscal year 2024, the Fair Market Rent (FMR) for ZIP 21838 is set at $1040, which is slightly below the market rate of $1,073. This means that landlords participating in the Section 8 program can expect a steady stream of rental payments that closely align with market rates, ensuring minimal risk of vacancy and providing a reliable source of income. The median home value of $206,020 indicates a moderate housing market where property values are unlikely to fluctuate drastically, further solidifying the stability of this investment.
While there is a slight difference between the FMR and the market rate, the spread is minimal at just $33 per month. This makes ZIP 21838 an attractive option for those looking to minimize financial volatility within their portfolios. The low price-cut share and N/A-day DOM suggest that properties in this area do not require significant discounts to attract tenants and sell quickly, indicating strong demand and stability in the local real estate market.
The 7.6% renter share and median income of $88,438 also contribute to the area's potential as a cash-flow anchor. Although the renter share is relatively low, the median income is high enough to ensure that the demand for rental units, especially those covered by Section 8 vouchers, remains robust. High-income residents often prefer the stability and predictability of renting through government-assisted programs, which can lead to long-term tenancy and reduced turnover costs.
In conclusion, ZIP 21838 serves best as a cash-flow anchor within a Section 8 portfolio strategy due to its close alignment of FMR and market rates, moderate home values, and a strong local economy that supports consistent tenant demand. These factors combine to offer a secure and predictable investment opportunity for landlords and small-portfolio investors.
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.