Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
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 | $1,700 |
| 1 Bedroom | $1,840 |
| 2 Bedrooms | $2,200 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $2,890 |
| 5 Bedrooms | $3,352 |
| 6 Bedrooms | $3,754 |
| 7 Bedrooms | $4,054 |
| 8 Bedrooms | $4,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,200 | $261,172 | 0.84% | C |
| 3BR | $2,620 | $392,415 | 0.67% | D |
| 4BR | $2,890 | $540,258 | 0.53% | F |
U.S. Census Bureau data (2024)
In Earleville, MD (ZIP 21919), the Federal Market Rent (FMR) for FY 2024 stands at $1700. This raises immediate concerns for landlords and small-portfolio investors regarding whether this figure will sufficiently cover the mortgage on a median-priced home valued at $373,990. The FMR does not typically account for mortgage payments, which can be significantly higher. According to recent data, the average monthly mortgage payment on a $373,990 home could range from $1,300 to over $2,000, depending on interest rates and loan terms. Thus, while the FMR might contribute to covering the mortgage, it likely won't fully offset it without additional income sources.
The second objection pertains to the renter demand in Earleville, currently estimated at 10.1%. This percentage suggests that a relatively small portion of the population is seeking rental properties, which could imply limited demand. However, this metric should be considered alongside other factors such as local job growth and housing availability. Despite the low percentage, the actual number of potential renters may still be sufficient given the size of the town. To further analyze this, we need to look into the specifics of Earleville's housing market and tenant demographics.
A final concern is the pace at which housing vouchers will keep up with market rents, which are currently at $1,746. While the voucher amount is expected to increase, it often lags behind market trends. If the voucher amount does not match the market rent, landlords might face difficulties in maintaining their properties or achieving profitability. The gap between the FMR and the market rent indicates that landlords relying solely on vouchers might struggle to meet their financial obligations. It is crucial for investors to monitor both voucher amounts and market rent trends closely to ensure alignment and avoid financial strain.
To summarize, while the FMR of $1700 for FY 2024 in Earleville, MD, is a starting point for determining rental subsidies, it may not fully cover mortgage payments on a $373,990 home. The 10.1% renter demand suggests a niche market, but it is essential to consider broader economic indicators. Lastly, the discrepancy between the $1,746 market rent and the FMR highlights the importance of keeping an eye on future adjustments in voucher amounts to ensure they align with increasing market rents.
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.