Location: Salisbury, MD | Metro: Salisbury, MD HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,100 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
U.S. Census Bureau data (2024)
The ZIP code 21865 presents several challenges for potential Section 8 landlords. Tenant turnover could be a significant issue, as the Fair Market Rent (FMR) for the area stands at $1310 for FY 2024, which is lower than the market rent. This discrepancy can lead to higher tenant churn, as individuals might struggle to afford the actual market rates and seek more affordable options through Section 8.
Vacancy exposure is another concern. The Days on Market (DOM) figure is not available, but it's crucial for landlords to understand that prolonged vacancies can severely impact cash flow. Given the lower FMR compared to market rents, landlords should prepare for potentially longer periods before securing tenants.
Deferred maintenance poses a risk due to the typical home value of $236,410 and a median income of $83,155. These figures suggest that residents may have limited financial resources to cover unexpected repairs or maintenance costs, which could fall back on landlords. It's essential to budget for these expenses to ensure properties remain habitable and comply with housing standards.
Despite these risks, the ZIP code has a 0.0% renter share, indicating a very high concentration of homeowners. While this might seem contrary to the expected demand for rental vouchers, it actually points to a niche market where Section 8 tenants can find fewer options, thus potentially increasing demand for the available rental units. However, the lack of renters also implies a smaller pool of potential Section 8 participants, which could limit the number of qualified applicants.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). 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.