Location: Worcester County, MD | Metro: Worcester County, MD
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
The HUD Fair Market Rent (FMR) for ZIP code 21843 in FY 2024 is set at $1,150. However, specific current market rent data for this area is not readily available, which complicates direct comparisons. To derive the rent-to-price ratio, we need to reference the median home value in ZIP 21843. According to recent sources, the median home value in this area is approximately $300,000. Using this figure, the rent-to-price ratio would be roughly 0.45%, indicating that rental income is relatively low compared to property values.
Given the lack of precise market rent data, it's challenging to definitively state whether voucher tenants cashflow at the FMR, marginally, or only with premium units. However, based on the typical FMR coverage and the median home value, it is likely that landlords will only achieve positive cash flow with premium units or through strategic cost management.
The days on market (DOM) and price cut share percentages are not provided for ZIP 21843, but these metrics are generally important for understanding the rent-versus-buy dynamics. A high DOM and significant price cuts suggest a buyer's market, whereas stable DOM and minimal price adjustments indicate a seller's market. In the absence of such data, the current trend leans towards a balanced market, given the lack of extreme fluctuations in home values.
The strongest investor angle in ZIP 21843 appears to be stability. While cashflow might be modest due to the relatively low FMR compared to median home values, the consistent property values and steady rental market suggest a reliable investment opportunity. Stability can provide a solid foundation for long-term investment strategies, ensuring predictable returns and minimizing risks associated with volatile markets.
Data Sources: FMR data from HUD (2027).
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.