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 | $1,180 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $223,982 | 0.69% | D |
| 3BR | $2,020 | $294,920 | 0.68% | D |
| 4BR | $2,020 | $359,424 | 0.56% | F |
U.S. Census Bureau data (2024)
The ZIP code 21875, located in Delmar, MD, within the Salisbury, MD HUD Metro FMR area, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for FY 2024 is set at $1380, which is notably lower than the market rent of $1,559. This indicates that landlords can expect a steady, reliable source of income through Section 8 vouchers, with a slight spread of $179 above the FMR. However, the median home value in the area stands at $297,334, suggesting that property values are relatively stable.
The low price-cut share of 0.2% and the lack of significant days on market (DOM) indicate a competitive but not overheated market. In such a scenario, the primary focus for landlords should be on securing a consistent cash flow rather than rapid appreciation. With a 31.5% renter share and a median income of $83,665, there is a reasonable demand for rental properties, but the income levels suggest that many potential tenants would qualify for Section 8 assistance.
A cash-flow anchor is essential in any real estate investment portfolio to provide a foundation of predictable income. ZIP 21875 fulfills this role well due to the guaranteed income from the federal government through the Section 8 program, making it less susceptible to market fluctuations compared to other areas. Landlords can rely on the FMR to ensure that their properties remain affordable and attractive to tenants while also providing a secure revenue stream.
In summary, ZIP 21875 is ideal as a cash-flow anchor within a Section 8 portfolio. The modest spread between the FMR and market rent, combined with a stable median home value, ensures that landlords can count on a reliable income source. While appreciation may not be a primary driver here, the consistent demand for rental properties and the availability of Section 8 vouchers make it a solid choice for those looking to stabilize their investment income.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.