Section 8 Fair Market Rent (FMR) for ZIP 21872 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,210
1 Bedroom	$1,210
2 Bedrooms	$1,510
3 Bedrooms	$2,020
4 Bedrooms	$2,240
5 Bedrooms	$2,598
6 Bedrooms	$2,910
7 Bedrooms	$3,143
8 Bedrooms	$3,300

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, ZIP 21872 in Worcester County, MD, is best suited as a **cash-flow anchor** within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for FY 2024 is set at $1,340, which provides a reliable baseline for rental income. Given that the median home value is $354,250 and there is no specific market rent data available, we can infer that the FMR aligns closely with market conditions, ensuring steady cash flow. The median income of $117,888 suggests a relatively affluent area, which could imply a lower risk of tenant turnover and default. However, with only a 2.2% renter share, the majority of residents are homeowners, indicating that the demand for rental properties might be limited. This makes the area less suitable as an appreciation play, where rapid increases in property values are expected, since there is no data showing significant price-cut shares or days on market (DOM). As a cash-flow anchor, ZIP 21872 offers stability and predictability. Landlords and small-portfolio investors can rely on consistent rental income, which is crucial for maintaining a balanced investment portfolio. The lack of market volatility and the presence of a stable income source through Section 8 vouchers make this ZIP code an attractive choice for investors seeking long-term, low-risk returns.

Note: While the area does not present significant opportunities for capital appreciation, it serves as a solid foundation for generating steady cash flow. This aligns well with a diversified investment strategy that includes both appreciation plays and cash-flow anchors.

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.